Pilbara Minerals has announced the results of the P2000 Project pre-feasibility study, indicating the potential to expand production capacity at its operation to over 2 million tons per annum (tpa) of lithium at SC5.2. The expansion anticipates an average annual production of 1.9 million tpa for the first decade, with more than 2 million tpa in the initial six years post-ramp up. Pilbara's current output for the Australian fiscal year ending June 2024 is projected at 690,000 tons.

The PFS assumes a long-term lithium SC6 price at US$1,500 per ton, and estimates total capital expenditure of around A$1.2 billion with nearly 50% for equipping the processing facility. 10-year average unit operating FOB cost is at A$550-650 per ton. The next feasibility study level is expected to be completed by December 2025, with the final investment decision (FID) contingent on market conditions.

In the company’s call following the announcement, the management team explained that a lower target of the recovery rate of 67.5% at P2000 is a result of ore allocation for maximising the global recovery rate across all Pilbara projects. The team further ensures the increase of water usage for larger production is within the company's control.

Author: Hongqiu Su | Battery Metals Analyst Associate | London Office, Shanghai Metals Market
Email: lilysu@smm.cn