Kidman reveals integrated lithium mine-to-refinery study results
PERTH (miningweekly.com) – Lithium developer Kidman Resources on Monday revealed that an integrated mine, concentrator and refinery project, in Western Australia, would cost $601-million to develop.
The company has completed a prefeasibility study on the proposed Kwinana lithium refinery, as well as an updated scoping study on the proposed Mt Holland mine and concentrator.
The integrated Mt Holland project is expected to produce spodumene concentrate from the mine and concentrator project, which would then be transported to the refinery and processed to produce some 45 254 t/y of battery grade lithium hydroxide.
The integrated project is estimated to have a C1 cash operating cost of $4 487/t of lithium hydroxide, while a post-tax net present value of $2.3-billion has been estimated, along with an internal rate of return of 27.7%.
Over an estimated project life of 47 years, the integrated Mt Holland project would deliver earnings before interest, taxes, depreciation and amortisation of $22-billion, and average revenues of $713-million a year.
Multiple opportunities have been identified to reduce the capital cost requirements, as well as to improve the overall project value.
“These studies mark an important milestone in our project to deliver a long-life, vertically integrated lithium mine-to-refinery operation in Western Australia,” said Kidman CEO and MD Martin Donohue.
The project would be operated by a joint venture vehicle Covalent Lithium, which is 50% held by Kidman and 50% by Chilean partner Sociedad Quimica y Minera de Chile.
A final investment decision on the project is expected in the first half of 2019, and Donohue said that Kidman was in continuing discussions relating to further offtake agreements with the aim of securing contracts for some 75% of the company’s share of production from Mt Holland, in the initial years of the operation.
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