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Highlights
- Sayona Mining has solidified its plans to begin North American spodumene (lithium) production in 2023, following the approval of the NAL program restart.
- The estimated cost of the upgrade and restart is about AU$110 million.
- Sayona and Piedmont, both contributed funds to the NAL restart project.
The board of Sayona Quebec Inc (SYQ) has approved the restart of the production of spodumene concentrate at NAL operation in Canada’s Quebec. This will need extensive infrastructural enhancements to enhance plant availability, recovery, and product quality. Sayona owns 75% in SYQ, and the rest 25% is held by Piedmont Lithium Inc (ASX:PLL).
Meanwhile, Sayona's (ASX:SYA) shares were skyrocketing today, up 14.29% at AU$0.16 each at 3.27 PM AEST. On the other hand, Piedmont's shares were 2.44% up, trading at AU$0.63 apiece on ASX at 3.31 PM AEST.
The estimated cost of the upgrade and restart is CA$98 million (about AU$110 million). Sayona has taken substantial actions to hasten the production restart, including hiring key staff, securing essential long-lead equipment, advancing intricate engineering design work, and securing nearly all necessary regulatory permissions. The first output from NAL concentrator is expected in Q1 of 2023.
Sayona and Piedmont both contributed funds to the NAL restart project. The offtake agreement with Piedmont permits it to purchase the greater of 113,000 metric tonnes of spodumene concentrate annually or half of NAL's production upon the restart of operations.
The arrangement called for the offtake of 60,000 tonnes, or 50%, of the concentrate made from ore mined from the close-by Authier Lithium Project of SYQ before the NAL restart.
Image Source: © 2022 Kalkine Media ®
Data Source- Company announcement dated 28 June 2022
On 27 June 2022, Sayona informed that the several new spodumene pegmatites found at its Moblan Lithium Project in Quebec offer a potential to expand Sayona's resource base in North America.
In addition, 200m south of the main Moblan deposit, the lithium producer discovered a compelling new and distinct Moblan South Discovery that is open in all directions.
Before that, on 23 June 2022, Sayona offered an update on its lithium projects in Western Australia. The business claimed that exploratory work at the Mt. Edon project had promising lithium subsurface prospects.
Source: © Khorzhevska | Megapixl.com
Bottomline
Sayona and Piedmont are exploring options for downstream processing in Quebec to increase value in the quickly expanding EV and battery market. This offtake agreement will continue until a lithium conversion factory in Quebec starts operating.
Moreover, all major players in the North American auto and battery industries are relocating to Quebec to invest in local production, taking advantage of its top-notch infrastructure, skilled workforce, proximity to important battery markets, and affordable, environmentally friendly hydroelectric power.
