SA-based mining giant Sibanye-Stillwater’s Finland lithium project has attracted €53.9m in investment from Finnish Minerals Group (FMG) which increased its stake in the potentially lucrative project to 20% from the 14% it already owned.
FMG is a special-purpose company wholly owned by the state of Finland, with a task to develop the mining and battery industry in the European country.
Sibanye, which will retain 80% ownership of the project, said on Tuesday the laying of the earthworks for the Keliber lithium refinery began in March. The total Keliber project capital is estimated at “€588m (excluding sustaining capital) as per the definitive feasibility study”.
It said the initial equity funding of the project through the increase of its shareholding to more than 50%, and the remaining equity funding would be “secured through the planned rights issue of about €104m”. The rest of the funding would be raised through debt.
Sibanye CEO Neal Froneman said the additional subscription by FMG in the project was a vote of confidence in the project.
“We are delighted with the progress of the Keliber project and the commitment of the Finnish Minerals Group as we advance and continue to grow our unique portfolio of green metals and enhance our presence supplying European battery metals industry,” Froneman said.
The project aims to start the sustainable production of battery-grade lithium hydroxide, using its own ore, in 2024. The mine and refinery in Finland is touted to play a key role in helping Europe reduce its reliance on China for the key battery metal for electric vehicles.
The EU now requires all new cars sold after 2035 to have zero-carbon emissions.
The Sibanye board in November approved €588m in spending that will start with the construction of a lithium hydroxide refinery in Finland’s Kokkola industrial park, from where the company plans to feed into the European battery sector.
Sibanye is also partnering with Ioneer to jointly develop the Rhyolite Ridge lithium project in the US.
An important growth driver is its use in the batteries of electric vehicles. Lithium is also used in the batteries of laptops and cellphones, as well as in the glass and ceramics industry.
Chile’s President Gabriel Boric this week announced plans to nationalise the country’s lithium industry, the world’s second-largest producer of the metal, to boost its economy and protect its environment.
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