PLS chief executive officer Dale Henderson speaks to Australian Mining about the ramp-up of the P1000 project and the company’s wider global ambitions.
Pilbara Minerals (PLS) has firmly cemented its position as a global lithium leader with the completion of its biggest production expansion to date – the P1000 lithium project in Western Australia.
At the heart of this momentum is a clear vision on market cycles, operational excellence and disciplined growth.
These are principles that PLS chief executive officer Dale Henderson said position the company well for the next upswing in lithium prices.
“Construction of the P1000 expansion project was completed in January, marking the end of a transformational two-year investment cycle,” Henderson told Australian Mining.
“Ramp up is now complete and we’re entering the optimisation phase of the project with a focus on achieving higher production volumes and lower unit cost.”
P1000, located at the company’s flagship Pilgangoora operation in WA, adds approximately 320,000 tonnes per annum (tpa) of spodumene concentrate production capacity.
It builds on the infrastructure and capacity added through the earlier P680 expansion, bringing the Pilgangoora operation’s total nameplate capacity to about 1Mtpa when including both the Pilgan and Ngungaju plants.
“This is in lock step with our phased growth plan to optimise production rates and remain a low-cost producer,” Henderson said.
“We’re moving from a growth to consolidation and optimisation phase, ensuring PLS remains in a strong position to thrive as demand for lithium grows in the future.”
The P1000 expansion wasn’t just about adding tonnes; it also included significant infrastructure and process improvements to help optimise recovery, improve efficiency and prepare the site for future flexibility.
“The P1000 expansion project leverages our earlier investment in additional primary rejection, crushing, and ore sorting capacity from the P680 expansion project,” Henderson said.
“It involved a series of upgrades to the Pilgan plant’s concentrator and a range of supporting infrastructure, which will be tied into the existing flowsheet.”
These upgrades included the duplication of the tertiary crushing, ball mill and flotation circuits, plus the addition of pre-flotation magnetic separation, secondary tantalum recovery, heavy media separation tailings, and a new split water circuit and concentrate dewatering circuit.
Non-process infrastructure investments included the construction of a new 15-million-litre raw water storage dam and extension of the borefield pumping and piping network to increase water supply.
Notably, PLS completed construction and achieved first ore ahead of schedule.
“We had an excellent team on this project and high-quality contracting partners working with us, so pleasingly we were able to complete construction and achieve first ore two months ahead of schedule,” Henderson said.
“That’s no mean feat, and I’m extremely proud of the team’s effort on this one, led by our project director Paul Laybourne.”
Henderson added that while the project was a success, it came with a timely reminder of the environment PLS operates in.
“Just as we achieved first ore, a tropical cyclone formed and was predicted to hit close to our operation,” Henderson said.
“In the end it tracked further east and fortunately we weren’t directly impacted, but it’s a reminder of the harsh environment we operate in and there are some things you can’t control.”
Navigating lithium’s evolving landscape
With the expanded capacity now online, PLS is confronting a very different market than the one that drove the original expansion.
Lithium prices have corrected sharply from their 2022 highs, prompting cutbacks and uncertainty across the sector.
“Lithium is still a young and rapidly evolving market, fuelled by technological breakthroughs, government policies, and the global shift toward cleaner energy, so short-term pricing volatility is to be expected,” Henderson said.
“The price spike we saw in 2022 encouraged new entrants to the market or the expansion of production and as that product has entered, it created the current situation of oversupply.”
Henderson believes the correction will reset the market for a stronger future.
“We’re currently witnessing a rebalancing of the market with production curtailments across the sector,” he said.
“Pricing at its current level is unprofitable and unsustainable for the majority of raw material producers, which could potentially lead to even further cuts in production.”
Concurrently, Henderson said, PLS is seeing strong signals from the market about future demand growth for lithium driven by electric vehicles (EVs) and mass energy storage.
“These conditions are setting the stage for the next phase of the cycle,” he said.
“We’re preparing our operation and business for this future state by preserving our current position and maintaining our options for future growth.”
Global ambitions
While Pilgangoora remains PLS’ core asset, the company is actively pursuing international diversification.
Its recent acquisition of Latin Resources gave PLS control of the Colina project in Brazil – a move that helps broaden the company’s revenue streams and geographic exposure.
“One of our strategic pillars is to diversify revenue beyond the Pilgangoora asset,” Henderson said.
“As PLS matured as a business and we were in a position to consider an acquisition, we looked at many lithium assets around the world.”
Henderson said PLS was attracted to the Colina project due to the quality of the orebody, existing regional infrastructure, expected low operating costs, government support for the industry and the reputation of the Minas Gerais region as a Tier 1 mining jurisdiction.
“We see Brazil as a strategic hub for Latin America and South America in strengthening global supply chains,” Henderson said.
“The pro-mining jurisdiction, fast-tracked permitting regime, and supportive local government in Minas Gerais provide us with near-term production optionality at Colina, making Brazil an attractive investment area.”
PLS believes Colina offers compelling economics and an opportunity to deliver meaningful local impact.
“Colina is a low capital intensity project that has the potential to provide attractive returns and unlock new battery end markets for PLS in North and South America,” Henderson said.
“We also recognise the opportunity to create generational change for the local community near the Colina project and surrounding areas by providing new jobs and business opportunities that will have lasting social and economic benefits to the community.”
The Colina acquisition doesn’t just expand PLS’ geographic reach; it also provides a new platform to apply the company’s proven technical expertise.
“As the developer and operator of one of the world’s largest hard rock lithium operations at our Pilgangoora operation, we have significant technical and operating experience to bring to the Colina project,” Henderson said.
“We will leverage our existing capability in exploration, resource development, project delivery, operations and lithium marketing with the local and project-specific knowledge of our Brazilian team as we advance Colina.”
Closer to home, PLS has also resumed construction of its mid-stream demonstration plant in partnership with Calix.
The project, paused in late 2024 due to market conditions, is back on track and will test the world’s first industrial-scale electric spodumene calciner.
“The project aims to construct and operate a demonstration-scale plant featuring the world’s first industrial-scale electric spodumene calciner,” Henderson said.
“This technology could create additional local jobs in Western Australia while producing a higher-value, lithium-enriched product at the mine site, which would support decarbonisation by reducing transport volumes to our customers.”
A leading force for the future
With a strengthened production base, growing international footprint and ongoing innovation efforts, PLS is preparing to extend its lead in the lithium market.
“PLS is recognised as a pioneer in the lithium sector, with a strong balance sheet, proven track record, and (a profile that sees us) operating at the lower end of the cost curve,” Henderson said.
“We are well-positioned in the global market with an expanding portfolio of global assets, integration into the supply chain and market optionality.”
Henderson said everything PLS has been working on in recent years has been part of the company’s long-term growth strategy.
“On a five-year outlook, we have significant growth optionality within our existing asset portfolio and a strong balance sheet and team to deliver it, when market conditions support supply growth,” Henderson said.
“We believe we are incredibly well-positioned to extend our position over time as a leading supplier in this future-facing industry.”
This feature appeared in the June issue of Australian Mining magazine.