Anson Resources (ASX:ASN) reports its Green River Lithium Project Scoping Study positions the Utah operation in the first quartile of global lithium producers, with operating costs of US$3,837 ($5,378) per tonne of lithium carbonate equivalent.
The front-end planning stage one study estimates initial capital requirements of US$568 million for a 10,000 tonnes per annum lithium carbonate operation based on Direct Lithium Extraction technology.
The study delivers a base case pre-tax net present value (NPV) of US$1,363 million with a 27.5% internal rate of return (IRR) and 4.44-year payback period. An upside case scenario generates a pre-tax NPV of US$2,690 million with a 49% IRR.
“The completion of the Scoping Study marks a significant milestone for the Green River Lithium Project,” Anson CEO Bruce Richardson says.
“The study confirms our strategy of developing a low-cost lithium operation with a capital profile that compares favourably with global peers.”
The project benefits from multiple cost advantages, including brine reservoir pressure of 4,500—5,500 pounds per square inch, reduced operating costs, and proprietary chemical-free iron removal technology.
High-quality brine chemistry with low impurity levels and existing nearby infrastructure including power, water, rail, and gas further reduce capital costs.
Project economics
Capital costs include US$218.9 million for direct inside battery limits costs, US$149.6 million for outside battery limits work, US$86.3 million in indirect costs, and a 25% contingency of US$113.7 million.
Operating cost estimates show energy representing the largest component at US$1,518 per tonne, followed by chemicals at US$1,433 per tonne and fixed operating expenses of US$700 per tonne.
According to the Scoping Study, the project demonstrates first quartile positioning on both operating and capital cost metrics compared to North American peers. Capital cost per tonne of installed capacity totals US$56,800, lower than comparable US projects.
The study utilises the upgraded resource estimate of 773,000 tonnes lithium carbonate equivalent, comprising 183,000 tonnes in the indicated category and 590,000 tonnes inferred. The 20-year mine life draws 91.5% from indicated resources and 8.5% from inferred resources.
What’s next
Multiple direct lithium extraction (DLE) technologies were evaluated based on financial returns, recovery rates, and scalability. The selected process incorporates brine pretreatment, lithium extraction via DLE, and refining to battery-grade lithium carbonate, with 90.25% total plant recovery.
The company has also begun a Definitive Feasibility Study, expected to be completed within six to seven months, followed by a front-end engineering design study.
Construction is estimated to require 24-30 months, with first lithium carbonate production targeted for 2029.
Anson has likewise secured a definitive offtake agreement with LG Energy Solution (KRX:373220) for 40% of annual production and awaits approval of its updated small mining operating notice from Utah’s Division of Oil and Gas, which represents the final major government approval required.
The project benefits from established infrastructure proximity, including Interstate 70 highway, Union Pacific railway, high-voltage transmission corridors, and natural gas pipeline access. Water rights from the adjacent Green River provide additional operational advantages.
“As the lithium market evolves, investment decisions are increasingly driven by returns rather than sentiment,” Richardson says.
“The Green River Lithium Project is strongly positioned in this environment, supported by competitive economics, advanced engineering, and a clear pathway to development.
“With the Definitive Feasibility Study now underway, we are progressing toward Final Investment Decision and remain focused on delivering a world-class lithium project in Utah.”
Edited by Paula Fabe
Write to info@mining.com.au at Mining.com.au
Images: Anson Resources
