NAL Restart Accelerates Towards Target
Brisbane, Jan 16, 2023 AEST (ABN Newswire) - Emerging lithium producer Sayona Mining Limited (
ASX:SYA) (DML:FRA) (SYAXF:OTCMKTS) has pushed ahead towards the recommencement of production in Q1 2023 at its flagship North American Lithium (NAL) operation in Quebec, Canada, with work continuing during the Christmas holiday period to ensure deadlines are met.
Progress towards the concentrator restart neared nearly 90% by the end of December for engineering and construction, with all critical equipment received, including the Vacuum pump and WHIMS Rectifier-Reducer. Installation of the LIMS was completed, together with the third ore sorter and other key items.
Up to 50 workers from selected contractors continued working during the Christmas holidays to maximise progress. Importantly, there were no recordable injuries during the period, reflecting Sayona's focus on maintaining a Zero-Tolerance policy regarding safety.
Pre-operational verifications and operational readiness continues to progress, including training and process operational support, with 75% of electrical and mechanical inspections completed.
As previously reported, all environmental approvals have been received (refer ASX release 12 December 2022), significantly de-risking NAL's restart. No environmental-related incidents were reported during the period, reflecting Sayona's focus on maintaining the highest environmental standards Commitments to end December totalled C$49 million versus planned commitments of C$49.3 million, with potential cost savings being further investigated. All equipment required for the restart has been procured, with all major procurement packages received at site.
NAL's advances towards the production of locally sourced lithium in Quebec in 2023 follow continued demand growth from electric vehicles (EVs) in North America. In the United States, EV sales nearly doubled from 2021 to 2022, while Canada is targeting 60% of all vehicle sales to be electric by 2030.
Almost US$300 billion of investment in new lithium-ion battery gigafactories has now been announced, including US$131 billion in 2022, up 24% on the prior year, according to analysts Benchmark Minerals Intelligence.
Sayona's Managing Director, Brett Lynch commented: "Sayona continues to advance towards the restart of production at NAL this quarter, and I congratulate the project team for pushing through the holiday period to ensure targets are met. This is particularly noteworthy given widely publicised global supply chain issues and cost pressures, with our team working hard to mitigate any potential issues.
"We now plan on releasing bimonthly updates on the NAL restart as we accelerate closer towards production.
"With demand from North America's EV and battery sector continuing to increase, NAL's outlook is excellent, putting Quebec in a highly strategic position as a clean and green, economical and stable supplier of this vital battery mineral."
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About Elevra Lithium Limited
Elevra Lithium Limited (ASX:ELV) (NASDAQ:ELVR) is North America's largest hard-rock lithium producer with a diversified portfolio of high-quality assets across Quebec Canada, the United States, Ghana and Western Australia.
Our flagship operation, the North American Lithium (NAL) mine in Quebec, Canada has successfully ramped up production of spodumene concentrate, supported by ongoing operational enhancements to increase recovery rates, throughput, and mill utilisation. Following a Mineral Resource upgrade, Elevra completed a Scoping Study for a brownfield expansion to increase NAL's annual spodumene concentrate production and reduce unit operating costs.
Complementing NAL, the Moblan Lithium Project in northern Quebec represents one of the largest undeveloped spodumene resources in North America, with a Mineral Resource of 121 Mt @ 1.19% Li2O.
Development activities are progressing with feasibility studies targeting a large-scale, long-life operation capable of supplying both domestic and international markets.
In Western Australia, Elevra holds an extensive portfolio of lithium and gold tenements, where exploration programs are advancing to unlock additional growth opportunities. Meanwhile, in the United States, our Carolina Lithium Project offers a strategic foothold in the downstream lithium chemicals market and our project in Ghana provides a further option for future growth.
Looking ahead, Elevra is focused on strategic downstream partnerships to enable further value-added lithium production, positioning the Company to deliver a secure, sustainable supply of critical minerals to global customers. Together, these assets establish Elevra as a growth-focused supplier supporting the global energy transition.
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