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Sayona Mining and Piedmont complete first spodumene shipment from North American Lithium project re-start

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By Imelda Cotton - 
Sayona Mining Piedmont Lithium ASX SYA PLL first spodumene shipment North American Lithium NAL AAL Moon
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Lithium producer Sayona Mining (ASX: SYA) has completed the first commercial shipment of spodumene concentrate from the North American Lithium (NAL) operation in Canada, which it shares in a 75:25 joint venture with Piedmont Lithium (ASX: PLL).

The shipment of approximately 20,500 metric tonnes of on‐specification concentrate was sold into the global spot market via a major trading company.

It is being carried on the AAL Moon general cargo vessel and is bound for further processing on the international lithium market.

The transaction is expected to minimise risk and allow for logistical flexibility as NAL prepares for increased sales tonnages in the 2024 financial year.

Sayona will monitor the process chain of the product as a pathway to global lithium chemical accreditation.

Selling prices

Sayona said US selling prices for the first shipment would be derived from Fastmarkets spodumene and lithium hydroxide monohydrate spot price indexes as well as the Shanghai Metals Market battery grade lithium hydroxide spot price index, including any adjustments.

Provisional payments will be received by NAL within five business days of the receipt of shipment documentation by the trading company, delivering important cash flow as NAL ramps up operations.

Milestone achievement

Sayona managing director Brett Lynch said the first shipment was a milestone achievement which positions NAL as the region’s leading producer of hard rock lithium.

“We are particularly pleased to make this first shipment in less than two years since NAL’s acquisition [in June 2021], reflecting our team’s strong execution capabilities and commitment,” he said.

“With a recent study showing the outstanding value of downstream processing at NAL, we look forward to developing a vertically-integrated operation and facilitating the ongoing development of a North American supply chain for this critical mineral.”

He said the shipment confirms Sayona’s ability to meet the ever‐growing demand for lithium and play a role in the global energy transition.

Piedmont shipment

Mr Lynch confirmed a second shipment totalling 30,000 metric tonnes of spodumene concentrate would be sold by NAL to Piedmont Lithium in August and September, subject to vessel sizing and availability.

The NAL-Piedmont offtake agreement commenced in July, with Piedmont entitled to the greater of 113,000 tonnes or 50% of spodumene concentrate production in a calendar year.

The timing and volume of each shipment will be determined through mutual agreement, with scheduling of shipments based on end-user requirements.

NAL expects to sell Piedmont at least 56,500 tonnes in the first half of the 2024 financial year via the offtake agreement.

Production ramp-up

An equal amount of concentrate will be sold to other customers subject to the performance of NAL’s production ramp‐up.

The operation has produced more than 42,000 tonnes of spodumene since it restarted in March.

Mr Lynch said the mine and processing plant continue to perform in line with expectations, and the spodumene concentrate is reported to be adhering to offtake specifications.

The company is expected to explore opportunities for long‐term offtake agreements for the uncommitted portion of spodumene concentrate produced at NAL.