An expanded Pilgangoora lithium mine is on the cards for Pilbara Minerals as the company completes its pre-feasibility study (PFS).
The PFS found that the Western Australian mine’s production capacity could be expanded to more than two million tonnes per annum (Mtpa), with the expansion project to be named P2000.
The first ten years of P2000 would see Pilgangoora produce an average of 1.9Mtpa, with product over 2Mtpa expected over the first six years after ramp up.
This would require the construction of a new whole of ore flotation plant with an estimated capital expenditure of $2.6 billion.
“The PFS demonstrates a strong value accretive project with an incremental NPV of $2.6 billion through this potential future expansion to the operation at Pilgangoora,” Pilbara Minerals managing director and chief executive officer Dale Henderson said.
“This study follows the 35 per cent reserve upgrade to 214 million tonnes announced in August last year. The growth of reserve, and the optionality to incrementally expand production, further reinforces Pilgangoora’s position as a Tier-1 asset of global significance.”
Henderson said the next level of the PFS will commence with expected completion in the December quarter of 2025.
“As we have done in the past, the timing of the final investment decision will be considered in conjunction with prevailing market conditions and only proceed when it makes sense to do so,” he said.
“In parallel to the feasibility study, the company will consider the full suite of opportunities associated with this expansion including funding, offtake strategy and downstream partnerships.”
Subscribe to Australian Mining and receive the latest news on product announcements, industry developments, commodities and more.
