Piedmont Lithium (ASX:PLL) has a heading to ship up to 126,000 tonnes of lithium resources from its jointly owned North American Lithium Project in Quebec, Canada to contract customers this year amid production ramp-up.
North American Lithium is a joint venture (JV) project between Piedmont and Sayona Mining (ASX:SYA) in which the latter holds the majority 75% interest and the former holds the remaining 25% stake. Production at the project began in March 2023.
Piedmont, which has a $387.3 million market capitalisation, has already shipped 15,000 tonnes during Q1 2024.
Meanwhile, results from a strategic review demonstrate to both JV partners that completion of several ongoing capital project initiatives is needed while both companies continue with the goal of completing ramp-up activities to achieve a steady state of production in 2024.
The two capital improvement projects include a crushed ore storage dome and crushed ore re-feed system, both of which are expected to be commissioned in May 2024.
“As the largest producing spodumene mine in North America, NAL is strategically important to our portfolio, our customers, and the market,” Piedmont President and CEO Keith Phillips says.
“NAL production has been ramping up well, albeit in a challenging lithium market. With the imminent completion of important capital improvement projects expected to lead to production increases and operating cost improvements, we believe the project is well-positioned for the market recovery we anticipate and to operate successfully over the long-term.”
March month-to-date lithium recoveries were 69%, exceeding the ramp-up target of 67%, with global recovery of 62% during the July 2023 through to March 2024 period.
According to Piedmont, production of spodumene concentrate has increased with several daily production records achieved in March this year, including the newest daily production record of 740 tonnes.
Piedmont also anticipates unit mining costs to improve as operations move past underground workings and into fresh ore near the end of 2024.
Piedmont Lithium is focused on developing a multi-asset, integrated lithium business enabling the transition to a net zero world and creation of a clean energy economy in North America.
Its assets include the Carolina Lithium and Tennessee Lithium projects in the US and partnerships in Quebec, Canada with Sayona Mining and Atlantic Lithium (ASX:A11).
Write to Adam Drought at Mining.com.au
Images: Piedmont Lithium
