Pilbara Minerals Ltd (ASX:PLS) is continuing with key developments including the award of further contracts and senior appointments at its Pilgangoora lithium-tantalum project in Western Australia.
The company is targeting the commencement of spodumene concentrate shipments in Q2 2018 as its stage-1, 2 million tonnes per annum (mtpa) project advances towards first production.
Importantly, the initial work has already commenced on the stage-2 expansion to 5 mtpa.
Pilbara has awarded a 7-year contract to Australian-owned Contract Power Group for the site power station construction and ongoing operations.
The build-own-operate power contract provides flexibility for the application of dual fuel (gas or diesel) within the first 2 years of the contract and for future solar-hybrid applications.
Pilbara has also appointed highly experienced mining executive Dale Henderson in the role of project director.
He will be in-charge of delivery of the balance of the stage-1 construction, establishing Pilbara’s operational readiness, and taking responsibility for the ongoing operations.
A 5 mtpa processing capacity at Pilgangoora would increase spodumene concentrate production to over 800,000 tonnes per annum, or circa 100,000 tonnes of lithium carbonate equivalent.
At this scale, Pilgangoora is expected to be one of the world’s largest lithium mines, if not the largest, depending on the timing of expansion at the existing Greenbushes mine.
The company’s share prices surged by 11.5% on Monday and closed at $0.485.