Sibanye-Stillwater will now embark on a phased implementation of its lithium project in Europe, months after it said the costs of the project had surged 17% to €783m due to regulatory changes and expanded project scope.
The decision will also maintain project financing flexibility by enabling “capital expenditures and refining ramp-up costs to be deferred, based on lithium prices” and other market factors and conditions, Sibanye said on Monday.
CEO Richard Stewart said that the group, alongside its partner, the Finnish Minerals Group, have agreed that a staged start-up of the Keliber lithium project is “the optimal way forward”.
This is after the completion of a multidisciplinary assessment of the project.
“The staged ramp-up we have agreed on with our strategic partner ensures that the Keliber lithium project advances responsibly, derisking the commissioning phase to ensure an optimal technical and commercial approach, balancing market realities with stakeholder interests,” Stewart said in a statement.
“We have invested significant capital through the price to complete the construction phase of the Keliber lithium project, ensuring this strategic asset is ready to deliver local supply into the EU battery value chain.
“Together, with our partners, we will continue to assess key milestones as we advance the Keliber project during its pre-operational phase and will continue to engage with potential strategic off-takers and EU stakeholders to ensure the value of this strategic asset is fully realised for the benefit of all stakeholders.”
Sibanye holds a 79.8% stake in the project.
The company in 2024 secured a €500m cash injection via a green loan package for the project.
At the time, Sibanye said it expected the Keliber lithium mining and battery chemical project to produce up to 15,000 tonnes a year of battery-grade lithium hydroxide.
The mine and refinery in Finland are expected to play a role in helping Europe reduce its reliance on China for the vital battery metal for electric vehicles (EVs).
The EU now requires all new cars sold after 2035 to have zero-carbon emissions.
The Sibanye board in 2022 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.
An important growth driver is its use in the batteries of EVs. Lithium is also used in the batteries of laptops and cellphones, as well as in the glass and ceramics industry.
“The Finnish Minerals Group is making preparations to participate pro rata to its equity stake in the project (20%) for additional financing required for the project through the ramp-up period. The Keliber lithium project is Europe’s most advanced integrated lithium project, with planned battery-grade lithium hydroxide monohydrate (LiOH) production of around 15,000 tonnes per annum for over 18 years,” Sibanye said.
“As the EU’s most advanced integrated mine-to-market lithium project and one of the few LiOH refineries outside China, the project is strategically significant and has been classified as a strategic project by the EU, aligned with the EU’s strategic initiative for critical minerals, the Critical Raw Materials Act.”
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