Name of the Project
Keliber lithium hydroxide project.

Location
Central Ostrobothnia, Finland.

Project Owner/s
Sibanye-Stillwater owns about 84.96% of the Keliber project, while Finnish Minerals Group holds 13.90% and other remaining minority shareholders 1.14%.

Project Description
The Keliber project had an attributable (84.96%) mineral resource of 14.5-milllion tonnes grading at 1% lithium oxide (Li₂O) as at December 31, 2022, containing 366 100 t of lithium carbonate equivalent (LCE); and mineral reserves of 8.2-million tonnes grading at 1% Li₂O, containing 193 600 t of LCE. 

The project entails the development of four opencast and three highly mechanised underground, mining operations – Syväjärvi and Rapasaari, which have a combined mine life of 16 years, will be developed first. Development of the Emmes, Outovesi, and Länttä operations will follow towards the end of the project life. These operations are situated across Kaustinen, Kokkola and Kronoby.

Ore mined will be fed to the Päiväneva concentrator, which will be situated close to the Rapasaari mine. The concentrator will have an estimated capacity of 200 000 t/y of spodumene concentrate. Concentrate produced at the Päiväneva concentrator is planned to be trucked about 66 km to the Kokkola refinery, at the Kokkola Industrial Park, which is forecast to produce about 15 000 t/y of battery-grade lithium hydroxide monohydrate.

Potential Job Creation
By the end of the fourth quarter of 2023 the employee headcount had reached 70.

Net Present Value/Internal Rate of Return
The 2019 updated definitive feasibility study (DFS) has estimated a pretax net present value, at an 8% discount rate, of €510-million, compared with the €295-million estimated in the 2018 DFS.

The pretax internal rate of return has also increased from 24% in the 2018 DFS to 28% in the 2019 updated DFS.

The payback period for the project has decreased from 5.5 years to 3.7 years.

Capital Expenditure
The project is estimated at €656-million (2023 real terms), previously €588-million (2022 real terms), of which the refinery’s capital cost is €418-million, on the back of amended water treatment technology to ensure compliance with more stringent effluent water quality conditions, and to increase lithium refinery recovery.

Capital expenditure (capex) for 2023 was €124-million versus revised guidance of €130-million. Capex in the second half of 2023 was €59-million. Total expenditure to date is €144-million.

Planned Start/End Date
Construction of the Keliber project started in the first quarter of 2023 and concentrator earth works in the fourth quarter of 2023.

Latest Developments
Sibanye-Stillwater has concluded a €500-million green loan financing facility through its subsidiary, Keliber Technology Oy. The loan completes the full financing requirement for the project while being a significant injection of capital for Sibanye to improve financial flexibility and liquidity.

The facility borrower is Keliber Technology Oy, and it will be guaranteed by Sibanye-Stillwater, Stillwater Mining Company, Sibanye Gold, Sibanye Rustenburg Platinum Mines, Kroondal Operations, Eastern Platinum, Western Platinum, Sibanye, Sandouville Refinery and Keliber Oy.

Keliber Technology Oy and Keliber Oy will join the guarantor group for Sibanye-Stillwater’s $1.2-billion bonds, a $1-billion revolving credit facility, a R6-billion revolving credit facility and the silicosis guarantee facility.

The green loan secures the final capital expenditure funding required for the construction and development of Sibanye’s lithium mining, processing and refining facilities in Kaustinen, Kronoby and Kokkola, all in Finland. It also helps to ensure that available group cash and debt facilities are ringfenced for operational and corporate requirements.

Aside from using the proceeds of the facilities to develop, build and maintain the Keliber lithium project, one of the key terms is for the amortised repayment profile to be tied to projected cash flows, with ultimate maturities of seven to eight years at a variable interest rate linked to the Euro Interbank Offered Rate.

Key Contracts, Suppliers and Consultants
Metso Outotec (sustainable soda pressure leaching technology).

Contact Details for Project Information
Keliber Oy, tel +358 10 567 0600 or email info@keliber.fi.