Published: September 16, 2021 |

[Click image to enlarge]

[Click image to enlarge]

Sibanye-Stillwater said that it will acquire a 50 percent stake in the Rhyolite Ridge lithium-boron project in Nevada, from ioneer for $490 Million.

Subsequently, the South African precious metals mining group will establish a 50:50 joint venture with ioneer for developing the lithium-boron deposit located in Esmeralda county.

The Rhyolite Ridge lithium-boron project is underpinned by a binding lithium offtake supply agreement signed by ioneer with Korea-based EcoPro Innovation. The three-year agreement is for the supply of a total of 7,000 tonnes per year (tpa) of lithium carbonate.

“We are excited to build a long-term relationship with ioneer, who share our vision of facilitating security of lithium supply to the North American markets. Rhyolite Ridge is a world-class lithium project and we recognize its strategic value, with the potential to become the largest lithium mine in the US.,” said Sibanye-Stillwater CEO Neal Froneman.

“We look forward to working collaboratively with the ioneer team and leveraging our complementary skills and capabilities to ensure this strategically important, world-class project is delivered, and materially contributes to reducing climate change,” added Froneman.

Ioneer’s capital estimate for the Rhyolite Ridge lithium-boron project is $785 million. An additional $74 milliom capital will be needed for constructing a lithium hydroxide unit in the third year of production.

The Australian firm will continue to be the operator of the project and will be responsible for its development and subsequent operation.

As per the terms of the agreement, Sibanye-Stillwater will also have an option to take part in 50 percent of the North Basin, which is contiguous with ioneer’s claims in the area, but separate from the Rhyolite Ridge project.

Sibanye-Stillwater’s participation in the North Basin will be subject to its contribution of up to an additional $50 million along with certain terms and conditions.

Additionally, ioneer has forged a subscription agreement with Sibanye-Stillwater for a strategic placement of $70 million of its ordinary shares.

“Sibanye-Stillwater, with its proven track record of developing and operating major mining projects including operations in the United States, its commitment to developing and maintaining an inclusive and sustainable culture, and its determination to become a major force in the battery materials supply chain, is an excellent partner for ioneer to jointly realise the promise of Rhyolite Ridge,” said Ioneer Executive Chairman James Calawa.

The setting up of the joint venture and the funding from Sibanye-Stillwater will be subject to final permits, commitments for remaining debt financing, approvals, and other preceding conditions. Following these, the deal could close during the latter half of 2022.

Rhyolite Ridge marks the second lithium transaction for Sibanye-Stillwater after its acquisition of a 30 percent stake earlier this year in Finnish lithium company Keliber.

The South African firm had also entered into a partnership with Johnson Matthey in March 2021, which is aimed at securing critical metals and expediting new technologies for a low carbon future.

Source: NS Energy

About Sibanye Stillwater
Sibanye Stillwater Limited operates as a precious metals mining company in South Africa, the United States, Zimbabwe, Canada, and Argentina. The company produces gold; platinum group metals (PGMs), including palladium, platinum, and rhodium; and by-products, such as iridium, ruthenium, nickel, copper, and chrome. It owns the East Boulder and Stillwater mines located in Montana, the United States; and Columbus metallurgical complex, which smelts the material mined to produce PGM-rich filter cake, as well as conducts PGM recycling activities. The company is also involved in the Kroondal, Rustenburg, Marikana, and Platinum Mile operations situated in South Africa; Mimosa located on the southern portion of the Great Dyke in Zimbabwe; the Driefontein, Kloof, and Cooke surface operations located on the West Rand of the Witwatersrand Basin; and the Beatrix situated in the southern Free State. In addition, it owns an interest in surface tailings retreatment facilities; the Marathon PGM project in Ontario, Canada; the Altar and Rio Grande copper gold projects in the Andes in north-west Argentina; the Hoedspruit and Zondernaam PGM projects in South Africa; and the Burnstone and southern Free State gold projects in South Africa. Sibanye Stillwater Limited was founded in 2013 and is based in Weltevreden Park, South Africa.

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