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  • Last updated

    7:14pm on Feb 03, 2023

Green light for Sibanye-Stillwater's Keliber lithium hydroxide project

14h00 (CAT) / 12h00 BST / 07h00 (EST) / 06h00 (MDT)

Programme

Strategic delivery in a chosen ecosystem Neal Froneman
Overview of the Keliber projectMika Seitovirta
Permitting, production and capitalHannu Hautala
ESG and biodiversityHannu Hautala
Lithium market outlookNeal Froneman
ConclusionNeal Froneman

Sibanye-Stillwater approves implementation of the Keliber project and begins the construction of the Keliber lithium hydroxide refinery

Highlights:

  • Keliber lithium hydroxide project approved by Sibanye-Stillwater board 
  • Progressing our European battery metals strategy and delivering superior value for all stakeholders
    • A high quality, integrated lithium project, positioned to supply LiOH into the growing European Battery ecosystem
  • Keliber project economics robust at conservative forecast lithium prices
    • Significantly leveraged to higher prices
  • Construction of the Kokkola lithium hydroxide refinery commencing and viable on a standalone basis
  • Positive outlook for Lithium market
  • Significant scalability of both primary supply and refining capacity

Strategically important for Finland and the European battery sector

Strategic delivery

  • Progress in building our portfolio of green metals and energy solutions
  • Increased Keliber shareholding to 85% -strategic value accretive, majority shareholding achieved
  • Increased exposure to the high-quality scalable Keliber lithium hydroxide project; in a favourable location, at opportune time in cycle
  • Enhancing established presence in European regional ecosystem -Keliber, Sandouville and Verkor Giga factory investment

World-class project in superior location

  • Strategically located, fully integrated lithium hydroxide project, close to critical regional end user ecosystems
  • Delivering 15,000tpa integrated LiOH into the European battery Ecosystem for at least 16 years
  • 17m tonnes of scalable lithium oxide mineral resources in a highly prospective region
  • Finland rated the best mining destination in Europe and Top 10 in the world

Robust economics

  • NPV of €887m (8% discount rate) and IRR of 20% at LiOH long term price of US$26,034/t*
  • NPV of €1.72bn (8% discount rate) and IRR of 27% at LiOH long term price of US$37,000/t#

Supportive environment and outlook

  • Consensus for elevated lithium price forextended period due to looming deficits increasing
  • Projected BEV demand driven by legislation –lithium is essential to reduce global CO2emissions
  • Constraints on new supply to meet implied demand

Positive benefits for all stakeholders

  • Substantial investment into key industries identified by Finnish state as of strategic importance
  • First and greenest integrated battery metals project in Europe -competitively low CO2emissions a differentiator
  • Important benefits for Finland fiscus and regional stakeholders –local employment and procurement for the region
  • Biodiversity impact studies conducted and considered in the development of the project
  • * February 2022 DFS amended during October 2022 for inflation impact on costs and capex, assuming long-term price LiOH of US$26,034/tonne and exchange rate of €/US$1.1, NPV at 8% discount
  • #Long-term LiOH price of US$37,000/tonne (SFA Oxford real forecast LT price) applied to amended October 2022 DFS. NPV at 8% discount

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