Ioneer secures deal with Shell to buy sulphur reagent for Rhyolite Ridge project
The deal paves the way for Ioneer to purchase up to 5,000tpa of sulphur from Shell to fulfil the requirements for the Rhyolite Ridge lithium-boron project.
Emerging lithium-boron supplier Ioneer (ASX: INR) has signed an agreement with Shell Canada Energy for the purchase of sulphur reagant for its Rhyolite Ridge project in the US state of Nevada.
Under the terms of the deal, Ioneer will buy up to 500,000 tonnes per year of high-quality sulphur from Shell to meet estimated annual requirements for the operation.
The companies also intend to collaborate through strategic initiatives focused on accelerating the energy transition.
Important step
Ioneer managing director Bernard Rowe said securing the supply of key reagents for ore processing was an important step along the critical pathway to project development.
“Sulphur is a primary input for our process which will be converted into sulphuric acid required for leaching the ore as well as releasing heat which is recovered to produce carbon free power and steam for the facility,” he said.
“Shell is an ideal partner for this effort, and we look forward to furthering our work together on additional decarbonisation solutions while providing materials for a sustainable future.”
Only known deposit
Rhyolite Ridge is the only known lithium-boron deposit in North America and one of only two known lithium-boron deposits in the world.
A definitive feasibility study completed in 2020 confirmed the project to be a world-class discovery which is expected to become a globally-significant, long-life, low-cost source of lithium and boron.
In September 2021, Ioneer entered into a 50:50 joint venture with Sibanye Stillwater to advance Rhyolite Ridge.
Joining forces with the global precious metals miner was considered to be a “transformational strategic investment” for the company.
Project deals
Ioneer has since signed lithium offtake agreements with Ford Motor Company, Prime Planet Energy & Solutions (a battery joint venture between Toyota Motor Corporation and Panasonic Corporation) and EcoPro Innovation.
The company also recently finalised a $149 million deal with construction and mining equipment giant Caterpillar to acquire the Cat MineStar Command autonomous ore hauling system for the project.
The deal covers equipment, technology and services for the first five years of Rhyolite Ridge’s operation.
The mine is expected to come onstream in 2025.