Pilbara increases lithium recoveries, cuts unit costs
Australian lithium producer Pilbara Minerals has improved plant recoveries and reduced unit costs at its Pilgangoora mine in Western Australia as it continues to moderate output in response to weak demand.
The mine shipped 33,893 dry metric tonnes (dmt) of lithium concentrate grading 6pc lithium oxide in January-March — compared with guidance of 35,000-50,000 dmt — and sold 33,998 lbs of tantalum concentrate, the company said. It held stocks of 10,150 dmt of lithium concentrate at the end of March.
Plant performance was improved through lithia recovery reaching a design rate of 72-78pc, depending on the source and blend of ore feed. Overall production and stock availability were matched to customer demand to reduce investment in working capital.
Pilbara is one of several hard rock Australian lithium producers that has reduced output or suspended operations and expansion plans in response to the lithium market weakness, which has seen prices fall below $500/t.
Stage one of its Pilgangoora mine has capacity to produce around 330,000 t/yr of lithium concentrate. A feasibility study has shown that a second stage could increase output to around 800,000 t/yr, but an investment decision has been indefinitely postponed.
Pilbara announced a new five-year offtake agreement with downstream Chinese lithium chemicals producer Yibin Tianyi last week. It already has offtake deals with China's Ganfeng Lithium, General Lithium and Great Wall Motors, as well as with South Korea's Posco.
By Angus Macmillan
source: Argus Media
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