Proactive Investors - Piedmont Lithium Inc (NASDAQ:PLL) welcomes the accelerated progress being made by partner Sayona Mining Ltd (ASX:SYA (ASX:SYA)) towards the recommencement of production this quarter at the North American Lithium (NAL) operation in Québec, Canada.
Sayona subsidiary NAL continued work during the year-end holiday period to ensure that deadlines are met.
Concentrator progress
Progress toward the restart of the NAL concentrator had reached 90% by the end of December for engineering and construction with all critical equipment received, including the vacuum pump and WHIMS rectifier-reducer.
NAL also completed installation of the LIMS together with the third ore sorter and other key items.
WHIMS piping installation.
Strategic partnership
Sayona’s work at NAL together with the Authier Lithium Project and its emerging Tansim Lithium Project is, supported by a strategic partnership with American lithium developer Piedmont Lithium.
Sayona’s managing director Brett Lynch said, “Sayona continues to advance towards the restart of production at NAL this quarter and I congratulate the project team for pushing through the holiday period to ensure targets are met.
"This is particularly noteworthy given widely publicised global supply chain issues and cost pressures, with our team working hard to mitigate any potential issues.
“We now plan on releasing bimonthly updates on the NAL restart as we accelerate closer towards production."
No injuries or incidents
Up to 50 workers from selected contractors continued working during the Christmas holidays to maximise progress on the NAL project towards first spodumene production.
There were no recordable injuries during the period, reflecting Sayona’s focus on maintaining a zero-tolerance policy regarding safety.
Pre-operational verifications and operational readiness continue to progress, including training and process operational support, with 75% of electrical and mechanical inspections completed.
Mechanical and electrical installation for the third ore sorter.
All environmental approvals have been received, significantly de-risking NAL’s restart and no environmental-related incidents were reported during December, reflecting the company’s focus on maintaining the highest environmental standards.
Commitments to the end of December totalled C$49 million, less than the planned commitments of C$49.3 million, with further potential cost savings being investigated.
Equipment procured
All equipment required for the restart has been procured, with all major procurement packages received at site.
NAL’s advances towards the production of locally sourced lithium in Québec in 2023 follow continued demand growth from electric vehicles (EVs) in North America.
In the US, EV sales nearly doubled from 2021 to 2022, while Canada is targeting 60% of all vehicle sales to be electric by 2030.
Almost US$300 billion of investment in new lithium-ion battery gigafactories has been announced, including US$131 billion in 2022, up 24% on the prior year, according to analysts Benchmark Minerals Intelligence.
“Excellent outlook”
“With demand from North America’s EV and battery sector continuing to increase, NAL’s outlook is excellent, putting Québec in a highly strategic position as a clean and green, economical and stable supplier of this vital battery mineral,” Lynch added.