Piedmont Lithium (NASDAQ:PLL) Inc (ASX:PLL, NASDAQ:PLL, XETRA:) welcomes moves by strategic partner Sayona Mining Ltd to fast‐track plans to move downstream in Québec, with the launch of a pre‐feasibility study (PFS) for potential lithium carbonate production at the North American Lithium (NAL) operation in Canada.
Sayona's 75%-owned subsidiary Sayona Québec is working closely with PLL to examine the options for producing lithium carbonate from spodumene (lithium) produced at NAL in Québec, where production of spodumene concentrate is scheduled to begin from the first quarter of next year.
Significantly, the NAL complex already includes about 50% of the facilities required to produce lithium carbonate, having been partially constructed by NAL’s previous owners.
Value-adding move
The move downstream is a significant value‐adding boost to enhance the long‐term value and profitability of the NAL operation, as well as to meet the partners’ acquisition commitment to contribute to the Québec province’s electrification drive.
Major engineering firm Hatch will undertake the lithium carbonate PFS, with a target to completion by March 2023, in line with the recommencement of spodumene concentrate production at NAL.
Sayona managing director Brett Lynch said: “Moving downstream has always been the plan for Sayona in Québec to enable a significant increase in profitability, whether through lithium carbonate or hydroxide production.
“We look forward to examining the results of the PFS, as we work towards becoming a leading integrated producer and the largest in North America, amid accelerating demand from the battery and electric vehicle sector.”
About NAL
The NAL project is in the Abitibi‐Témiscamingue region in western Québec, encompassing a contiguous group of 19 mineral claims and a mining lease that is valid until May 2032.
The project will have a processing facility with a feed rate of 1.5 million tonnes per annum and will include a conventional primary, secondary and tertiary crushing circuit combined with primary and secondary ore sorting.