Following a comprehensive, multidisciplinary assessment of the Keliber lithium project, in Finland, multinational mining and metals processing group Sibanye-Stillwater and its strategic partner in the project, the Finnish Minerals Group, have agreed that a staged startup of the project is the optimal way forward, given current market conditions.

The staged commissioning of the various elements of the project, including the mine, concentrator and refinery, is expected to reduce project ramp-up risk, by initially ensuring operational readiness in the mining and concentrating stages, before making a decision on the timing of the commissioning of the refinery. This staged approach is also aimed at maintaining project financing flexibility by enabling capital expenditures and refining ramp-up costs to be deferred, based on lithium prices and other market factors and conditions.

Concurrently with the staged commissioning of the mine and concentrator, several value engineering opportunities were identified from the comprehensive assessment and will be progressed, focusing on unit cost reduction and optimising processes, Sibanye-Stillwater reports.

"The staged ramp-up we have agreed on with our strategic partner ensures that the Keliber lithium project advances responsibly, derisking the commissioning phase to ensure an optimal technical and commercial approach, balancing market realities with stakeholder interests.

"We have invested significant capital through the price cycle to complete the construction phase of the Keliber lithium project, ensuring this strategic asset is ready to deliver local supply into the EU battery value chain," Sibanye-Stillwater CEO Richard Stewart comments.

Sibanye-Stillwater points out that the construction phase, including cold commissioning of the fully integrated Keliber project, remains on track for completion in the first quarter of this year. The total capital investment to complete the construction phase is estimated at about €783-million.

The Keliber lithium project is an advanced integrated lithium project, with planned battery-grade lithium hydroxide monohydrate production of about 15 000 t/y for over 18 years. 

Sibanye-Stillwater notes that the Finnish Minerals Group is making preparations to participate pro rata to its equity stake in the project (20%) for additional financing required to sustain the project through the ramp-up period.

"Together, with our partners, we will continue to assess key milestones as we advance the Keliber project during its pre-operational phase and will continue to engage with potential strategic offtakers and EU stakeholders to ensure the value of this strategic asset is fully realised for the benefit of all stakeholders," says Stewart.