PLS Group (ASX:PLS) is proceeding with a $1.9 billion expansion of its Pilgangoora Operation in Western Australia, aiming to nearly double its annual lithium production capacity.
The P2000 Project is designed to increase spodumene concentrate production capacity to approximately 2 million tonnes (Mt) per annum, strengthening Pilgangoora’s position as one of the world’s largest lithium operations.
The expansion involves constructing a new processing plant, Jimmagunya, with first production expected in the September quarter of 2029.
Early site preparation is underway, with construction expected to take approximately two and a half years, PLS says.
The project follows the earlier P680 and P1000 expansions at Pilgangoora. The operation has been in production since 2018 and has a capacity of up to 1Mt.
“P2000 will transform the scale and competitive position of PLS. It provides a pathway to approximately 2 million tonnes per annum of production, further extending PLS’ position as one of the world’s major lithium producers,” Managing Director and CEO Dale Henderson says.
Henderson adds that the expansion will deliver higher production at lower unit costs, improving Pilgangoora’s competitiveness and resilience through lithium market cycles.
Ore reserves increase 31%
The investment decision follows the completion of a Feasibility Study for P2000, which identified opportunities to improve mining and processing efficiency at Pilgangoora.
The study highlighted a 31% increase in contained lithium oxide (Li₂O) in Pilgangoora’s ore reserves, bringing the total to approximately 3.1Mt.
This includes a maiden underground ore reserve of 46.5Mt grading 1.50% Li₂O.
According to PLS, the P2000 expansion will allow approximately 67Mt of mineralised material previously classified as waste to be economically recovered as ore.
The new Jimmagunya processing plant will enable PLS to recover more of the Pilgangoora orebody, supporting higher production rates and a larger ore reserve.
The expanded open-pit reserve supports about 20 years of production under the P2000 mine plan, increasing to more than 25 years when underground mining is included, as highlighted in the study.
$650 million infrastructure investment
Separately, PLS plans to invest up to $650 million in infrastructure at Pilgangoora to reduce operating costs and improve productivity.
The investment includes upgrades to Wodgina Road East, the operation’s main access road, alongside a new permanent accommodation village and a purpose-built mine services facility.
According to the company, the road upgrade is expected to reduce concentrate haulage movements by approximately 35%, while improving safety and transport reliability.
The WA Government has also committed an initial $11 million towards upgrading the Great Northern Highway intersection.
The company says the infrastructure investments would support more efficient operations and the long-term development of Pilgangoora as production expands.
PLS Group is a lithium producer with a diversified portfolio of assets and strategic partnerships worldwide.
Write to Jackson Chen at Mining.com.au
Main Image: PLS Group
