Page 40 - pd281-Apr20-mag-web_Neat

BAtteRY MIneRALs

Lithium’s lack of spark leaves

juniors struggling

ust as the West Australian lithium sec- vehicle battery manufacturer,” Brinsden Such is the company’s renewed
Jtor seemed on its last, short legs, two said. “This will allow us to capture value confidence, it is pushing ahead with
of its most prominent members were from the future growth in the electric ve- development work on its Stage 2 ex-
thrown financial lifelines in March. hicle market while also supporting Yibin pansion which will see capacity lifted
Pilbara Minerals Ltd and neighbour Tianyi’s growth ambitions to become one from 2 mtpa to 5 mtpa.
Altura Mining Ltd have been the stand- of the biggest lithium chemical suppliers While a few of the darkest clouds
ard-bearers for all the excitement and in China.” have lifted from above Altura and Pil-
disappointment WA’s lithium sector has Pilgangoora has been running under bara, there is still plenty of pain in the
produced over the last three years. Both capacity since mid-2019 as Pilbara ad- WA lithium sector.
companies shot from insignificance to justs its output to softening demand for The transfer of all issued capital in
world-leading developers and then pro- spodumene concentrate from China. Alita Resources Ltd to Liatam Mining
ducers as the EV narrative and battery While the company said there had been was the latest blow.
minerals thematic took hold in 2016- some disruption within the China supply Alita announced on March 9 that
2017. However, when their operations chain as a result of the COVID-19 pan- the Supreme Court of Western Aus-
struggled and lithium concentrate prices demic, “the ability to secure sales, credit, tralia had granted transfer of Alita
stubbornly refused to follow the expected and shipping has continued to function shares to Liatam under a deed of
narrative, they found themselves in deep within China”. company arrangement organised by
trouble. Further positive news came from Pil- administrator KordaMentha who had
Despite the global gloom around the gangoora’s concentrator which has failed previously deemed the company’s
coronavirus pandemic, March brought to achieve forecast recoveries. The plant collapse inevitable if the deal was not
good news to both companies. First Altu- achieved average lithia recovery of 72% taken.
ra announced it had completed a $US305 in the current batch processing cam- Liatam’s offer allows larger share-
million refinancing (see page 46) then on paign with several days hitting 74-75%. holder Galaxy Resources Ltd to
March 25, Pilbara announced a new five- Design estimates were for 72-78% lithia secure its $47.8 million investment
year offtake agreement with Yibin Tianyi recovery. but will mean creditors and smaller
for 75,000 tpa of high-quality spodumene “The ability of the processing plant to shareholders missing out.
concentrate from its Pilgangoora project. deliver these improved lithia recovery Alita (formerly Alliance Mineral As-
The contract with Yibin Tianyi – a key results consistently reflects the optimi- sets Ltd) had run hard at its Bald Hill
supplier of lithium chemicals to Pilbara’s sation and improvement works com- lithium-tantalum project 50km north of
largest shareholder and major EV manu- pleted by the company over the past 12 Kambalda, moving in 16 months from
facturer CATL – accounts for more than a months,” Brinsden said. “The achieve- first drilling to commercial production in
third of Pilgangoora’s annual production. ment of these strong and competitive July 2018.
Pilbara managing director Ken Brins- lithia recovery results, even in a moder- Twelve months later, the company was
den said the offtake was part of the com- ated production environment, provides in trading suspension with the flood of
pany’ plans to diversify Pilgangoora’s confidence that the processing plant will new spodumene concentrate production
customer base. be able to achieve both design lithia re- and the slow growth of lithium conver-
“Our new partnership will further in- covery and full production capacity once sion capacity blamed for customer indif-
tegrate Pilbara Minerals within the sup- steady-state operations are under way ference.
ply chain of the world’s largest electric on a continuous basis.”

Page 40 aPRIL 2020 aUSTRaLIa’S PaYDIRT