Piedmont Lithium and Sayona Mining begin feasibility study for lithium carbonate production

Piedmont Lithium (ASX: PLL) and joint venture partner Sayona Mining (ASX: SYA) have launched a pre-feasibility study to evaluate the potential for lithium carbonate production at the North American Lithium (NAL) operation in Quebec.

The pre-feasibility study will assess generating lithium carbonate from spodumene produced at NAL.

First spodumene concentrate from NAL is anticipated in the March quarter of next year after the joint venture appointed L. Fournier & Fils last month to undertake mining at the project over the first four years.

Starting this month and working around the clock, Fournier will be responsible for supervising stripping and drilling, blasting, loading and transportation of ore and waste rock, as well as maintaining mining roads and all other services for the operation.

The on-site equipment fleet will include more than 10 trucks with capacity for 100 tonnes and two excavators.

Lithium carbonate production

With activity underway at NAL this month, Piedmont and Sayona are fast-tracking downstream lithium carbonate production plans.

“Moving downstream has always been the plan for Sayona in Quebec to enable a significant increase in profitability, whether through lithium carbonate or lithium hydroxide production,” Sayona managing director Brett Lynch said.

It also is believed moving downstream will boost long-term value for the operation.

Major engineering company Hatch is undertaking the pre-feasibility study, which is due for completion by March next year – in-line with spodumene production from NAL.

“We look forward to examining the results of the pre-feasibility study as we work towards becoming a leading integrated producer and the largest in North America – amid accelerating demand from the battery and electric vehicle sector,” Mr Lynch said.

Mr Lynch pointed out the NAL complex already contains about 50% of the facilities required to produce lithium carbonate.

The NAL re-start was officially approved in June with a budget of approximately C$98 million (A$110 million).

Piedmont has a 25% interest in the joint venture and Sayona holds the remaining 75%.