Published: September 7, 2023 |

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[Click image to enlarge]

Piedmont Lithium expects to receive the first shipment of spodumene (lithium) concentrate this month from the North American Lithium (NAL) operation in Québec, Canada, as part of an agreement with offtake partner Sayona Mining.

NAL’s current port inventory is approximately 30,000 wet metric tonnes (wmt) of spodumene concentrate, which is sufficient to supply Piedmont with its maiden cargo of circa 15,000 wmt due to be loaded in September.

Cash payment will be received by NAL from Piedmont for its cargo under the offtake agreement within standard commercial terms following completion of loading at the port.

NAL is jointly owned by Sayona, which holds 75 percent, and Piedmont Lithium with 25 percent.

Current port inventory plus the additional product volume from mine production will be sufficient for an upcoming cargo for the NAL joint venture in late September/October 2023.

As well as NAL Sayona’s assets comprise the Authier Lithium Project and its emerging Tansim Lithium Project, supported by a strategic partnership with American lithium developer Piedmont Lithium.

Sayona has received the first cash proceeds for its NAL operation following the inaugural shipment of spodumene (lithium) concentrate to the international lithium market.

RAMP-UP CONTINUES

These shipments come as the NAL mine and process plant ramp-up continues to progress well with the focus on optimizing and debottlenecking the production process.

A recent failure of the rod mill resulted in four days of lost production, however, the plant came back online smoothly and has performed well since.

The NAL joint venture is reviewing its forecast production and sales in light of the ramp-up performance as well as the impact of continuous improvement initiatives.

NAL’s spodumene concentrate grade is averaging 5.5 percent Li2O for year-to-date production, with other key concentrate parameters adhering to offtake specifications.

IMPROVEMENT PROJECTS

Alongside the ramp-up, NAL has also substantially progressed capital improvement projects, including a tailings storage facility (TSF) capacity increase and a new crushed ore dome which will improve winter operating efficiencies.

The TSF is undergoing a wall lift to safely increase its storage capacity, with completion expected in November 2023. The new crushed ore dome is scheduled for completion in the March quarter of 2024.

“We are delighted to secure the cash proceeds from NAL’s first sales of spodumene concentrate, marking another major milestone for North America’s leading source of hard rock lithium production,” said Sayona’s interim CEO James Brown.

“We are focused on continuing to safely ramp up production at NAL and consistently delivering high-quality spodumene concentrate to port ahead of multiple shipments planned for the remainder of the year, delivering increasing cash proceeds to NAL for the benefit of the joint venture,” added Brown.

“It is also pleasing to see our partner at NAL in readiness to take their first shipment under our offtake agreement. Sayona has an exciting outlook as we work to maximize value and cashflows from the NAL operation while seeking to expand our lithium resource base,” concluded Brown.

Source: Proactive Investors

Piedmont Lithium is developing a world-class, multi-asset, integrated lithium business focused on enabling the transition to a net zero world and the creation of a clean energy economy in North America. Its goal is to become one of the largest lithium hydroxide producers in North America by processing spodumene concentrate produced from assets where they hold an economic interest. Their projects include Its wholly-owned Carolina Lithium and Tennessee Lithium projects in the United States and partnerships in Quebec with Sayona Mining and in Ghana with Atlantic Lithium. These geographically diversified operations will enable Piedmont to play a pivotal role in supporting America’s move toward decarbonization and the electrification of transportation and energy storage.

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