Pilbara Minerals is moving forward with plans to significantly expand its Pilgangoora lithium mine in Western Australia, following the completion of a pre-feasibility study (PFS).
The study revealed that the mine’s production capacity could increase to over two million tonnes per annum (Mtpa), with the expansion project named P2000. In the first decade of P2000, Pilgangoora is expected to produce an average of 1.9Mtpa, with production exceeding 2Mtpa during the first six years post-ramp-up.
To achieve this, a new whole-of-ore flotation plant will need to be constructed, with an estimated capital expenditure of $2.6 billion.
“The PFS demonstrates a strong value accretive project with an incremental NPV of $2.6 billion through this potential future expansion to the operation at Pilgangoora,” stated Dale Henderson, Pilbara Minerals’ managing director and chief executive officer.
This development comes after a significant 35% reserve upgrade to 214 million tonnes announced in August of the previous year. Henderson emphasised that the growth in reserves and the potential for incremental production expansion further solidify Pilgangoora’s status as a globally significant Tier-1 asset.
The next phase of the PFS is set to begin, with completion anticipated by the December quarter of 2025. Henderson noted that the final investment decision will be aligned with market conditions and will proceed only when deemed appropriate.
“In parallel to the feasibility study, the company will consider the full suite of opportunities associated with this expansion, including funding, offtake strategy, and downstream partnerships,” Henderson added.
This expansion project underscores Pilbara Minerals’ commitment to enhancing its production capabilities and maintaining its competitive edge in the global lithium market.