Critical minerals developer Lepidico (ASX:LPD) has received detailed planning approval from the Abu Dhabi Ports Group (ADP) for its Phase One lithium chemical plant in the United Arab Emirates (UAE).
The $99.29 million market capitalisation company reports this approval represents an important milestone for the project as it allows certain site works to start and applications submitted to other regulators to be approved.
With approval received from Abu Dhabi Ports Group, Lepidico reports building permit applications can be made, while a detailed design for non-process infrastructure has been completed and is ready for inclusion in the first building permit application.
Process plant detailed design will be staged as major mechanical equipment vendors complete their respective workstreams once finance is in place, which will allow the remaining building applications to be submitted.
The Phase One lithium chemical plant is based on an integrated mine, concentrator, and chemical plant development. The project features a base-case unlevered net present value (NPV) of US$452 million and an internal rate of return (IRR) of 41%.
This chemical plant is designed to process 56,700 tonnes per annum of lithium mica/phosphate concentrate for a production capacity of 5,600 tonnes per annum of lithium hydroxide.
Lepidico predicts the concentrate feed grade will range between 2.5% and 3.9% lithium oxide over the project life, with an average of 2.7%, which will result in an average annual lithium hydroxide output of 4,350 tonnes.
The company says the ‘significant’ excess production capacity in the impurity removal and lithium recovery circuits provides an opportunity for optimisation and higher output once in production.
Lepidico also notes the ‘modest’ size of Phase One for a lithium chemical conversion facility and its ‘high level’ of installed capacity are ‘important’ risk mitigants, as development and operating risks increase exponentially with scale.
Commenting on the approval, Lepidico Managing Director Joe Walsh says: “Granting of the Detailed Planning Approval by ADP is a further essential milestone in the progress of the Phase One Project.
“Phase One is a strategically important development that will demonstrate that lithium and other critical minerals can be sustainably produced from lepidolite and other mica minerals”
The company appreciates the cooperation and support shown by Abu Dhabi Ports Group for the development of the project, and we look forward to continuing working with them in a constructive and mutually beneficial relationship.
Further updates will be provided as finance is secured and other project milestones are achieved. Phase One is a strategically important development that will demonstrate that lithium and other critical minerals can be sustainably produced from lepidolite and other mica minerals.”
Lepidico is an ASX-listed lithium hydroxide and other critical minerals developer aiming to bring its Phase One lithium chemical plant in the UAE into production in 2025.
Utilising ore from the brownfield open-pit Karbib mines in Namibia, the company will process lithium hydroxide using its patented L-Max and LOH-Max hydrometallurgical technologies.
As of 31 March 2023, Lepidico had $15.3 million cash at hand, according to its latest quarterly report.
Write to Harry Mulholland at Mining.com.au
Images: Lepidico Ltd
