Sibanye-Stillwater approves the 2nd phase of its Keliber lithium project
Johannesburg – Sibanye-Stillwater has announced that it has approved the commencement of the second phase of its Keliber lithium project which includes the construction of the concentrator and the development of the Syväjärvi open pit mine in Päiväneva in Finland. Delivery of ore from the Syväjärvi open pit mine will be timed to coincide with the commissioning of the concentrator.
The environmental permit for phase two was received in December 2022, which enables the development to continue. The appeal lodged by Sibanye-Stillwater, querying the terms of six of the 144 permitting conditions will continue in parallel with the construction. Due to the nature of the appeal, the permission to commence construction has not been withdrawn.
Higher capital expenditures have been planned to meet the more stringent effluent water quality conditions. The capital expenditure for the concentrator is now forecasted at €230 million, which is €10 million higher than the previous estimate. This increase is due to the revision of the effluent water treatment facility at the Keliber lithium refinery. We have incorporated amended technology into the flowsheet to ensure compliance with environmental permits, which will also result in increased recoveries. Despite the higher capital requirements, the adjustment has not had a negative impact on the net present value of the project due to the positive impact of the expected recoveries. The updated aggregated project capital for the Keliber project is estimated at €656 million (2023 real terms) including contingencies (previously €588 million in 2022 real terms).
The equity funding for the project has already been secured and completed, while the finalisation of the debt funding is in progress.
Neal Froneman CEO of Sibanye-Stillwater said ”We are pleased to be commencing construction of the lithium concentrator and Syväjärvi mine. The Keliber lithium project remains on track to be the first integrated lithium hydroxide supplier in Europe. We look forward to working with all stakeholders to deliver this exceptional project, which will contribute to the regional economy as well as to the growth of our unique portfolio of green metals that aim to reverse climate change.”
