A Quebec lithium mine poised to develop into the one Canadian web site actively producing the important thing battery metallic has obtained the ultimate authorities allow required to start out up operations, in line with developer Sayona Mining Ltd.
The regulatory nod from Canada’s Department of Fisheries and Oceans clears the best way for the open pit mine close to Val-d’Or in northwestern Quebec to start producing lithium-rich spodumene focus within the first half of 2023, the Australia-based miner mentioned Dec. 13.
“With this major advance, Sayona will become the only producer of lithium concentrate in Quebec and in Canada. This is a very promising position for our region, which puts us at the forefront of the emerging energy transition,” Annie Blier, vice-president of surroundings at Sayona Québec, mentioned in a press release.
Sayona mentioned its North American Lithium mission has obtained greater than 130 permits from provincial and federal regulators as the corporate steers the location again towards manufacturing. The mine was beforehand began up in 2018 beneath a special proprietor, earlier than flagging lithium costs halted operations and pushed the earlier proprietor into creditor safety the next 12 months.
Sayona bought the mission in 2021 together with U.S.-based Piedmont Lithium Inc., bundling it right into a three way partnership dubbed Sayona Québec. Sayona controls 75 p.c of the three way partnership, whereas Piedmont owns the remaining 25 p.c.
With lithium demand from the electrical automobile battery market booming, the 2 firms agreed this June to spend $98 million to restart and improve the mine, including to roughly $400 million spent on growth by the earlier homeowners.
Much of the work is already full or beneath manner.
Piedmont CEO Keith Phillips mentioned greater than 100 employees and contractors are on-site and far of the crucial gear has been put in on the brownfield mine. The upgrades will assist the mission run extra easily than it did beneath the earlier operator, he mentioned in an interview.
“We could have turned it on when we bought it a year ago, but it made sense to make real improvement. It’ll run more efficiently and have higher recoveries and be a more reliable operation.”
Along with holding a stake within the Quebec lithium mission, Piedmont is ready to develop into the mine’s largest buyer.
An offtake settlement with Sayona will permit Piedmont to buy at the very least 113,000 tons per 12 months of spodumene focus from the mine, amounting to about 65 p.c of its manufacturing, Phillips mentioned.
Piedmont is then lining up its personal prospects for the stream of focus. Phillips mentioned the corporate is in talks with automakers and battery cell producers and anticipates firming up buy agreements by early subsequent 12 months.
Following these bulletins, he expects the Sayona Québec three way partnership to “worry about the remaining tonnage.”
Sole provider
“There are plenty of suitors. Lithium is in short supply.”
In truth, in North America’s nascent battery provide chain, Sayona Québec would be the sole provider over the short-term.
“There’s nobody else with spodumene production coming in North America for at least two years after, so this is an important asset from the North American supply chain’s perspective,” Phillips mentioned.
By mid-decade, a number of lithium mines at the moment in growth may comply with the Quebec web site into manufacturing. In Canada, miners are advancing laborious rock lithium initiatives in Quebec, Ontario and Manitoba, in addition to lithium brine-focused developments in Alberta and Saskatchewan.
As it restarts operations in Val-d’Or, Sayona Québec can also be planning to course of the lithium focus produced on the mine right into a type of lithium that may be built-in into EV batteries.
Phillips mentioned the three way partnership is at the moment learning whether or not restarting an current lithium carbonate plant on the mine web site shall be possible, or if one other a part of the province will show better-suited to the value-added processing step.
Source: www.autonews.com
