Covalent Lithium believes it has confirmed a compelling case for an integrated mine-to-refinery operation producing battery-grade lithium at the Mt Holland project in Western Australia.
The joint venture between Kidman Resources and Sociedad Química y Minera de Chile (SQM) today released an integrated pre-feasibility study for Mt Holland.
According to the partners, the study outlined a long-life (47 years), low-cost operation with estimated average production of 45,254 tonnes of lithium hydroxide.
The PFS revealed a forecast capital expenditure for the operation of $US737 million ($1.03 billion), which is in line with previous estimates.
Mt Holland’s Earl Grey deposit has a maiden ore reserve of 94.2 million tonnes at 1.5 per cent Li2O in the PFS.
Kidman chief executive officer Martin Donohue said the company had committed to completing the integrated PFS before the end of the year.
“The study provides further support for the attractive economics of our long-life, vertically-integrated lithium hydroxide project,” Donohue said.
“Importantly, with the forfeiture issue now settled, funding secured through to final investment decision and strong progress on our lithium hydroxide agreements, we continue to make good progress towards development of this globally significant project.”
The JV expects to complete the definitive feasibility study for Mt Holland in the first half of 2019. It will follow the DFS with a final investment decision.
Mt Holland is a 50:50 JV between Kidman and SQM.