Pilbara Minerals recently released the outcomes of a pre-feasibility study (PFS) which determined that production capacity at the company’s 100% owned Pilgangoora Operation could be expanded to more than 2.0 million tonnes per annum (Mtpa). The Pilgangoora ore body is one of the largest hard-rock lithium deposits in the world and is considered strategically important within the global lithium supply chain.

Such an expansion is expected to result in the first ten years of annual production averaging ~1.9Mtpa, with production of more than 2Mtpa over the first six years after ramp up. The expansion project will be named the P2000 Project (P2000).

The Pilgangoora Operation is located in the Pilbara region of Western Australia, approximately 140km to the port of Port Hedland via road, where the company’s spodumene concentrate is shipped to international customers.

First production was achieved at the Pilgangoora Operation in 2018. Over the past six years of operation the company has pursued a staged and incremental expansion strategy growing the production capacity from the mine as the lithium market has grown. The operation is on track to deliver a nameplate production rate of 1Mtpa following completion and ramp-up of the P1000 Project during September Quarter 2025.

The P2000 PFS focused on the opportunity to realise further value from the Ore Reserve, which was increased by 35% to 214Mt at 1.19% Li₂O in August 2023. This value was identified through mine planning studies focused on accelerating production from existing Ore Reserves1 with a target to support ore feed to a third processing facility to be constructed on site.

The PFS concluded that an increase in ore supply rate to 12.4Mtpa is achievable and supports the construction of a third onsite concentrator, generating a significant increase in the spodumene concentrate supply rate from the Pilgangoora Operation to ~1.9Mtpa at current SC5.2 grades over a 10 year average.

This acceleration of mining rate affords the Pilgangoora Operation the ability to incorporate a larger dedicated bulk waste fleet, targeted to address the higher strip ratio associated with the pit depth extensions identified in the 2023 Ore Reserve upgrade.

P2000 would further extend Pilbara Minerals’ position as the largest pure play lithium producer globally. The timing of the P2000 Project will be subject to the successful outcome of the next level of feasibility study, project approvals and the market outlook at the time of the financial investment decision (FID).

P2000 would require construction of a new whole of ore flotation plant at Pilgangoora with an estimated capital expenditure of $1.2B (-20/+30% accuracy). The new plant would complement existing processing flowsheets in use at the Pilgangoora Operation.

Pilbara Minerals has commenced a feasibility study in relation to P2000 (FS) with outcomes expected in the December Quarter of calendar year 2025 (CY25). A potential FID will follow the FS outcomes. Funding requirements will be determined during the FS and FID phases. Pilbara Minerals will consider all available funding options including the company’s cash balance ($1.8B as at 31 March 2024), cashflows from existing production, new loan facilities or other sources.

P2000 will deliver significant additional spodumene concentrate annual production capacity for offtake and strategic partnership opportunities which Pilbara Minerals will explore in parallel with the FS and FID.