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Expansion will bring concentrate output to 1 million tpy
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Full production ramp-up for end of Sept-quarter 2025
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Company has plenty of interest from potential customers
(Adds CEO comments, details and background)
By Melanie Burton and Navya Mittal
MELBOURNE, March 29 (Reuters) - Pilbara Minerals , Australia's largest independent lithium miner, said on
Wednesday it has approved a capital investment to increase
production capacity at its flagship Pilgangoora lithium project
in Western Australia.
The investment in the Pilgan plant will help increase spodumene concentrate production by 47% to 1 million dry metric tonnes per annum and is already attracting interest from existing and potential customers, Chief Executive Officer Dale Henderson told Reuters.
"As one of the few major producers globally offering an expanding platform we've had no shortage of inquiries to partner with us, a great position to be in," he said.
Pilbara expects full production and ramp-up at the project by the end of the September quarter of 2025 with an estimated capital expenditure of A$560 million ($375.59 million). Shares of the miner rose 3.6% to A$3.985 by 0258 GMT.
The Western Australian miner last year secured A$250 million long-term financing from Australia to support expansion at the Pilgangoora project, which sits on one of the world's largest lithium ore deposits. Battery makers have been scrambling to secure raw materials supplies and a softening of prices this year may open up some sector consolidation, Henderson said.
On Tuesday, Liontown rebuffed an offer from top global lithium producer Albemarle , which valued the Australian lithium miner at $3.7 billion.
"I think Albemarle's move to acquire Liontown is a really positive signal for the industry and the outlook that they hold," Henderson said. As miners look to move up the value chain and capture more margin for themselves, Pilbara is considering building a pilot plant to produce lithium phosphate salt using renewable energy. That would bring lithium content to 35%-36%, up from 6%, allowing the miner to get better prices as well as cutting freight costs and carbon emissions. Pilbara said last month it was likely to make an investment decision on the pilot plant in the June quarter. But, this may now slip into the September quarter, Henderson said.
($1 = 1.4910 Australian dollars) (Reporting by Navya Mittal in Bengaluru; Editing by Uttaresh Venkateshwaran and Sherry Jacob-Phillips)
