[SMM Analysis] Sibanye Stillwater's lithium mine project in Finland sees a 17% surge in costs, but the 2026 commissioning plan remains unchanged

South African mining giant Sibanye Stillwater announced on Friday that the total estimated cost of its Finnish Keliber lithium mine project had been revised upward by 17% to €783 million (approximately $880 million), primarily due to changes in regulatory requirements and adjustments to the project scope.

As the controlling shareholder with a 79.8% stake, the company noted in its operational report: "The revised total capital expenditure from the development and construction phase to the hot commissioning phase of the refinery has increased by €116 million." As of the end of March 2025, the project had accumulated €508 million in investment, and the 2025 capital expenditure budget was also revised upward from the originally planned €215 million to €300 million.

This significant European lithium resource project is planned to produce 15,000 mt of battery-grade lithium products annually starting from 2026, with a service life of at least 16 years. In August last year, Sibanye secured €500 million in debt financing support from institutions including the European Investment Bank.

The company emphasized that the project construction is currently "progressing smoothly," and the refinery will still commence trial production as scheduled in Q1 2026. The cost increase primarily involves strengthening environmental compliance and infrastructure expansion, but it has not affected the established commissioning timetable. Against the backdrop of accelerating global energy transition, this project will support the EU in building a domestic lithium battery supply chain.