Lithium miner Pilbara Minerals has announced its highest-ever quarterly production, achieving record numbers in the three months leading up to June. Spodumene concentrate production rose by 10% compared to the previous quarter, reaching 162,800 tonnes. The increase in production can be attributed to various factors, including improved mining activity facilitated by enhanced productivity measures such as the introduction of new equipment and optimization of shift changeovers.
In addition to mining improvements, the company also reported advancements in processing plant feed volumes, processing plant run-time, and lithium recoveries, contributing to the overall rise in concentrate production. As a result, spodumene concentrate sales experienced a significant boost in the fourth quarter, increasing by 22% to reach 176,300 tonnes.
The full-year figures for Pilbara Minerals have demonstrated remarkable growth compared to the previous financial year. Production soared by 64%, totaling 620,100 tonnes, while sales experienced a 68% surge, reaching 607,500 tonnes. Although the revenue for the quarter declined by 18% to A$0.8 billion, the full year saw a substantial increase of 238% to A$4 billion. This can be attributed to a decline in realized prices during the quarter, followed by an 87% improvement in the full year.
Pilbara Minerals has been actively involved in expanding its operations and has made progress on its P680 expansion project at the Pilgangoora operation. The construction work for the project has been prioritized with a focus on the primary rejection facilities, which are expected to increase production capacity by 100,000 tonnes per year. Commissioning for this facility is scheduled for the September quarter, with full capacity targeted for the end of the December quarter. On the other hand, the commissioning of the new crushing and ore sorting facility, previously expected in the March quarter of next year, has been rescheduled for the June quarter. The ramp-up is now expected to take place in the September quarter of next year.
Furthermore, Pilbara Minerals has approved the P1000 project at Pilgangoora, which will significantly increase the nameplate capacity of spodumene concentrate from around 680,000 tonnes per year to 1 million tonnes per year. The expansion includes an enlarged concentrator, increased throughput at the Pilgan plant, and various site infrastructure upgrades. It is projected that the expanded operation will commence in the third quarter of the 2025 financial year.
The company has begun a partnership process to explore potential downstream joint ventures for up to 300,000 tonnes per year of future unallocated spodumene concentrate resulting from the P1000 expansion.
Additionally, Pilbara Minerals is making strides in constructing a lithium hydroxide monohydrate chemical facility in South Korea in collaboration with POSCO. The joint venture is expected to commence commissioning of its Train 1, with a capacity of 21,500 tonnes per year, by the third quarter of the 2024 financial year. The project is currently 35% complete. As for Train 2, commissioning is scheduled for the second quarter of the 2024 financial year and is now more than 65% complete.
Pilbara Minerals’ dedication to production expansion and strategic partnerships showcases its commitment to meeting the growing demand for lithium, a crucial component of electric vehicle batteries and renewable energy storage systems. By capitalizing on its increased production capabilities, the company aims to secure its position as a leading player in the global lithium market.
