Name of the Project
Karibib lithium project – Phase 1.

Location
The mine will be located in Namibia, and the chemical conversion plant in Abu Dhabi, in the United Arab Emirates.

Project Owner/s
Lepidico.

Project Description
Karibib has ore reserves estimated at 9.4-million tonnes at 0.43% lithium oxide, 278 parts per million caesium sulphate, 2% potassium and 0.21% rubidium. The project involves the development of a vertically integrated mine and chemical conversion plant, with a production life of 19 years.

Lepidolite concentrate will be produced and shipped from Namibia to a chemical conversion plant at the Khalifa Economic Free Trade Zone industrial park, in Abu Dhabi.

The project envisages lithium hydroxide production of about 4 350 t/y, after ramp-up. Total rubidium sulphate production is estimated at 1 400 t/y, caesium sulphate production (salt basis) at 235 t/y and sulphate of potash production of 6 900 t/y.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The Karibib operations have an after-tax net present value (NPV), at an 8% discount rate, of $100-million and an internal rate of return (IRR) of 27%. The chemical plant has an after-tax NPV, at an 8% discount rate, of $357-million and an IRR of 24%. The project has a payback of less than three years.

Capital Expenditure
Phase 1 preproduction capital is estimated at $266-million.

Planned Start/End Date
Not stated.

Latest Developments
Lepidico is exploring options to maximise the value of the project and has hired Jefferies International as its financial adviser to guide the process.

The company is considering a range of strategic options, including bringing in a minority equity partner, selling the asset or pursuing other potential deals that align with its goals.

Lepidico is reaching out globally to existing and new potential partners, including private corporations, State-owned enterprises, investment funds and private equity firms.

Proposals from potential partners will be evaluated based on their certainty, sustainability and overall value to shareholders, with binding proposals requested by October.

Lepidico is also in talks with various governments for funding support for its integrated Phase 1 project. The company aims to secure one or more transactions for the project soon.

Key Contracts, Suppliers and Consultants
Jefferies International (financial adviser).

Contact Details for Project Information
Lepidico, tel + 61 8 9363 7800 or email info@lepidico.com.