Germany Chancellor plans lithium deal with Serbia after Rio ruling
Olaf Scholz plans to visit Serbia this week to secure supplies of lithium that are critical for the nation’s energy transition and auto industry.
Sayona Mining (ASX: SYA) has completed the definitive feasibility study for its Moblan lithium project, giving it a post-tax net present value of C$2.2 billion ($1.6bn) and a post-tax internal rate of return of 34.4%.
Moblan is a joint venture with Investissement Québec’s SOQUEM (40%) and is located 130 km north of Chibougamau, in the Eeyou Istchee James Bay region of northern Quebec.
An open pit mine and 4,800 t/d processing plant is planned to produce a spodumene concentrate containing 6% lithium oxide (Li2O). Annual production will be 300,000 t/y of concentrate over a 21-year life for the mine. The project is expected to generate an estimates total net revenue of C$14.4 billion, with an EBITDA of C$11.2 billion.
“These positive financial returns have been driven by an estimated head grade of 1.36% Li2O, a LOM (life of mine) recovery rate of 74.7% and LOM average annual concentrate production of 300,000 t/y at a grade of 6% Li2O,” Sayona said in a release.
The company says it will cost C$926 million to build the project and a further C$96.1 million in sustaining costs. The all-in sustaining cost to produce a tonne of concentrate will be C$748.04, compared to a projected market price of C$2,653/tonne ($1,990/tonne).
The Moblan project has a probable reserves of 34.5 million tonnes grading 1.36% Li2O, included in measured and indicated resources of 49.9 million tonnes at 1.20% Li2O. The inferred resource is 21.1 million tonnes at 1.0% Li2O.
Sayona has a producing lithium project, the North American Lithium (NAL) operations between Val d’Or and Amos, in the Abitibi-Temiscamingue hub of northern Quebec. Last year, it began producing spodumene to meet growing battery demand.
The NAL operation is a joint venture of Sayona (75%) and Piedmont Lithium (25%). It is currently the subject of review as the spot price for lithium is expected to dip to roughly $2,200/tonne in 2025 from an average of $42,840/tonne last year.
“We are confident that the current lithium market will recover over the medium term,” said Sayona interim CEO James Brown, adding that Sayona will now look to review the timelines given the current market conditions and secure the necessary financing and partners capable of advancing the Moblan project through to successful production.
