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into the project over the past five years had posed that the 3,500 tpd plant will convert remains another key item on the company’s
gone into ensuring there was minimal or no sulphur into commercial-grade sulphuric agenda for the year ahead. Goldman Sachs
risk to the environment. acid used to leach lithium and boron from the is continuing to advise on the various debt
“The environmental baseline studies were crushed rock. options, while the company has signed just
completed a long time ago – a year and a half The heat released from this process will be one lithium offtake agreement to date – with
ago now – so we’re very aware of any sensi- recovered to produce zero-carbon steam for EcoPro Innovation Co Ltd for up to 7,000 tpa
tive matters on the project,” he said. electricity sufficient to power the entire Rhyo- of lithium carbonate over a three-year term –
“Obviously the Tiehm’s buckwheat is the lite Ridge operation, as well as the evapora- representing 34% of the total lithium produc-
main one, but we’ve had a very good strat- tion and crystallisation processes required to tion across the first three years of operation.
egy around how to manage that, how the two produce lithium carbonate and boric acid. While ioneer was quickly able to find
can co-exist, minimising impact and mitigat- Veolia was awarded the major supply and homes for its boron, Calaway said the deci-
ing for any impact that we do have [is] a lot of engineering contract, which represents the sion to hold fire on the lithium, especially with
scientific research that supports what we’re single largest supplier package for the con- prices significantly depressed this time last
proposing there.” tract to date. The group has already started year, had proved to be correct.
As part of the $US490 million investment work on final detailed engineering design of “We had a lot of ongoing, long conversa-
agreement, only the South Basin aspect of the equipment package, with the supply con- tions but we weren’t prepared to negotiate
Rhyolite Ridge has been included in the JV. ditional on a final investment decision. significant offtake agreements in a bad en-
Sibanye-Stillwater has an option over 50% DuPont’s contract is also conditional on vironment, and I think that paid off well,” he
of the North Basin (which was not included FID. Rowe said this had been a deliberate said.
in the DFS) for an additional $US50 million, move by the company to ensure the project “Our issue at this point, quite frankly, is not
subject to certain terms and conditions. was in a shovel-ready position when the final can we put all our material away in an offtake,
The ioneer deal was Sibanye-Stillwater’s permit was awarded. the real issue is we’re wanting to make sure
second lithium transaction this year – it had the people we’re putting it to are outstand-
already reached agreement for a 27% stake ing offtake partners and whether they are
in Finnish company Keliber Oy – and its third focused on the development of capacity in
in the wider battery minerals space. the US. Right now, the US doesn’t have sig-
Sibanye-Stillwater chief executive Neale nificant cathode or battery material-making
Froneman said such transactions were es- facilities, but what we’re focusing on is do-
sential to the company’s transition towards ing deals with companies that have these
“cleaner green metals” despite still being the strong-intent plans to do that so that we can
world’s largest platinum and palladium pro- transition our materials into the US more.
ducer. “There’s a real sense of a potential short-
“We are excited to build a long-term re- age looming and one of the things that’s so
lationship with ioneer, who share our vision important about our project and the potential
of facilitating security of lithium supply to the economics of it is we have a chance at being
North American markets,” he said. “Rhyolite one of the early, new, big pieces of produc-
Ridge is a world-class lithium project and we tion that come on – and certainly will be the
recognise its strategic value, with the poten- first one to come on in the US. That’s an envi-
tial to become the largest lithium mine in the able position and I think people are beginning
US. We look forward to working collabora- to wake up and realise that’s the case.”
tively with the ioneer team and leveraging our Bernard Rowe Rowe believes the company will also be
complementary skills and capabilities to en- pushing the button on Rhyolite Ridge at the
sure this strategically important, world-class ideal time, not just in line with forecasts for
project is delivered and materially contributes “If you waited until FID and then went and lithium demand but with the world starting to
to reducing climate change.” said to them, ‘OK, we’ve made FID, now return to a form of post-pandemic normality.
Bringing Sibanye-Stillwater into the fold we’re going to sign a contract’, they will come “I think we’re fortunate that we aren’t going
marked the end of an 18-month global back and say, ‘well, we’ve got 3-6 months of out and actually commencing construction
search for a strategic partner for Rhyolite detailed engineering to do before we actually right now. It’s going to be a much better time
Ridge following completion of a robust DFS go on to the site and start building anything’. to do so in the second half of next year be-
which forecast production of 20,600 tpa Here, we’re going to have all of that done in cause by then everything will be completely
lithium carbonate and 22,000 tpa battery- advance,” Rowe told Paydirt. opened up again, including international trav-
grade lithium hydroxide (from the fourth year “Very fortunately, we’re well funded so el,” Rowe said.
of operation) for an estimated lowest-quartile we’re in a position to be able to do that. We “We’ve done a lot of work over the last few
AISC of $US2,510/t. are spending money – serious money – do- years on where we’re going to get labour
Having raised $80 million via a heavily ing this detailed engineering. It’s in the order from, how we are going to attract them to the
oversubscribed placement earlier this year, of somewhere between $20 and $40 million area, where are they going to live, all of these
ioneer has already started a number of pre- of work over the next 12 months before that things. I often say to people to have a look at
paratory works to ensure Rhyolite Ridge FID decision is made.” our engineering model and all the test work,
maintains its status as the most advanced Danish firm FLSmidth has also been con- our feasibility [study] and you’ll see an incred-
lithium project in the US. These include the tracted to supply the majority of crushing and ible amount of detail in the work that’s been
award of major contracts to the likes of Du- material handling equipment, plus the rotary done.
Pont Clean Technologies and Veolia Water lithium carbonate and boric acid dryers, while “I remind people that we approach all the
Technologies Inc. ioneer signed a partnership last year with other aspects of this project with the same
DuPont was awarded the contract for the Caterpillar as the exclusive heavy equipment level of rigour, which includes execution of
licence, engineering and supply of propri- partner for Rhyolite Ridge. the project.”
etary equipment for the sulphuric acid plant Finalising the debt component of the pro-
and will now work with existing engineering ject financing package, as well as the remain- – Michael Washbourne
partner SNC-Lavelin on the design. It is pro- ing offtake contracts for the lithium products,

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