Piedmont Lithium and Sayona Mining Formalize Restart Plans for North American Lithium in Quebec
28 June 2022 - 8:50PM
Business Wire
Spodumene concentrate production expected to
restart in first half of 2023
Piedmont Lithium (“Piedmont”) (Nasdaq: PLL; ASX: PLL), a
leading, diversified developer of lithium resources critical to the
U.S. electric vehicle supply chain, today announced that the board
of directors of Sayona Quebec Inc. (“SYQ”), which is owned 75% by
Sayona Mining (“Sayona”) and 25% by Piedmont, authorized the
restart of spodumene concentrate production at its North American
Lithium (“NAL”) project located near Val-d’Or, Quebec. The NAL
restart will feature significant operational upgrades totaling
approximately $80 million aimed at improving product quality and
plant utilization. Long-lead equipment was ordered and detailed
design engineering commenced in late 2021 based on our jointly
planned timeline. Operations at NAL are expected to commence in the
first half of 2023. The NAL restart project will be entirely funded
from pro-rata cash contributions by Sayona and Piedmont, with each
party having completed significant capital raises in the first half
of 2022.
“We are excited to take this essential next step toward
supplying much-needed North American lithium resources,” said Keith
Phillips, President and Chief Executive Officer of Piedmont
Lithium. “Authorizing the restart of the NAL project is consistent
with our plan to become a revenue generating company in 2023 and
contributes to our strategic goal of becoming a leading North
American lithium producer through our integrated portfolio of
lithium projects.”
Piedmont and Sayona confirmed the terms of the spodumene
concentrate offtake agreement between SYQ and Piedmont. Under the
offtake agreement, Piedmont is entitled to purchase the greater of
113,000 metric tons per year of spodumene concentrate or 50% of
production from the NAL project. The agreement also covers
concentrate produced from ore mined at SYQ’s Authier Project.
Purchases are subject to market pricing with a price floor of $500
per metric ton and a price ceiling of $900 per metric ton.
Under the terms of the offtake agreement, if Sayona and Piedmont
jointly construct and operate a lithium conversion plant in Quebec,
then spodumene concentrate produced from the NAL project would be
preferentially delivered to that chemical plant upon start of
operations. Any remaining concentrate not delivered to a jointly
owned conversion plant would first be delivered to Piedmont up to
Piedmont’s offtake right and then to third parties. Sayona and
Piedmont expect to begin a series of technical studies with respect
to lithium conversion in Quebec and will update the market in the
coming months.
“This is a fresh start for NAL. The planned capital upgrades
will have a positive impact on both product quality as well as
reduced operating costs achieved through improved plant utilization
and higher spodumene recoveries,” said Phillips. “We also look
forward to the commencement of technical studies for lithium
chemical production in the province of Quebec, which is an ideal
location for future lithium hydroxide production given the
province’s abundant mineral resources, low-cost hydroelectricity,
and supportive provincial government.”
To view the complete Piedmont Lithium release, click here.
About Piedmont Lithium
Piedmont Lithium (Nasdaq: PLL; ASX: PLL) 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. Our goal is to become one of
the largest lithium hydroxide producers in North America by
processing spodumene concentrate produced from assets where we hold
an economic interest. Our projects include our wholly-owned
Carolina Lithium and LHP-2 Projects in the United States and
partnerships in Quebec with Sayona Mining (ASX:SYA) and in Ghana
with Atlantic Lithium (AIM:ALL). These geographically diversified
operations will enable us to play a pivotal role in supporting
America’s move toward decarbonization and the electrification of
transportation and energy storage. For more information, visit
www.piedmontlithium.com.
Summary of Offtake Agreement Terms
Supply Agreement
Buyer
Piedmont Lithium Carolinas, Inc., a
wholly-owned subsidiary of Piedmont, or an affiliated company
Seller
Sayona Quebec Inc.
Product
Spodumene concentrate containing 6.0% Li2O
grade (dry basis)
Quantity
113,000 dry metric tons (“dmt”) per
year or 50% of production, whichever is greater
Term
Life-of-mine of the North American Lithium
and Authier Projects
Price
Market pricing (based on an average price
for CIF China Price (US$) for 6.0% SC6 dry basis) with a minimum
price of US$500/t and a maximum price of US$900/t on a DAP North
Carolina basis
Conditions
If Sayona and Piedmont agree to jointly
develop and operate a lithium chemical plant, including a restart
of the lithium carbonate plant at North American Lithium or another
lithium chemical plant at a different location, then the partners
agree that the order of priority for production volume of spodumene
concentrate from North American Lithium will be:
- Jointly-owned lithium chemical plant
- Piedmont volume under the offtake agreement
- Third parties
View source
version on businesswire.com: https://www.businesswire.com/news/home/20220628005277/en/
For further information: Erin Sanders VP, Corporate
Communications T: +1 704 575 2549 E:
esanders@piedmontlithium.com
Christian Healy/Jeff Siegel Media Inquiries E:
Christian@dlpr.com E: Jeff@dlpr.com
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