Piedmont Lithium Inc (ASX:NASDAQ:PLL, OTC:PLLTL) partner Sayona Mining will continue to ramp up production at North American Lithium (NAL) in Canada after surpassing targets and setting new production records in March 2024.
Exceeding recovery expectations
As part of its ongoing strategic review, NAL, in which Piedmont Lithium (ASX:PLL, OTC:PLLTL) has a 25% stake and Sayona 75%, has been exceeding process recovery expectations, achieving 69% lithium recovery, surpassing the 67% target.
The collaboration has facilitated steady improvements in NAL’s operations, allowing it to maintain product quality at an average grade of 5.45% Li2O.
What’s more, Piedmont has announced plans to ship 126,000 tonnes of product in 2024, with the aim of decreasing its dependency on unpredictable spot markets, with 15,000 tonnes already shipped in the first quarter of 2024.
The joint venture's operational review concluded that despite the volatile lithium market, NAL's production ramp-up is progressing as expected.
Key capital projects like the crushed ore storage dome and re-feed system are set for completion in May 2024 and are anticipated to drive significant production and cost efficiencies.
Unit costs to reduce
Moreover, unit mining costs are expected to reduce as operations transition to extracting fresh ore by the end of 2024 – a pivotal phase in achieving steady state production and operational excellence.
"As the largest producing spodumene mine in North America, NAL is strategically important to our portfolio, our customers and the market," said Piedmont Lithium president and CEO Keith Phillips.
"NAL production has been ramping up well, albeit in a challenging lithium market. With the imminent completion of important capital improvement projects expected to lead to production increases and operating cost improvements, we believe the project is well-positioned for the market recovery we anticipate and to operate successfully over the long term."