Lithium Ionic Expects More Mineral Resources, Lower Costs at Brazil Project

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Lithium Ionic (Toronto, Ontario) published definitive feasibility study results for its Bandeira lithium project in Minas Gerais, Brazil.

The company reported proven and probable mineral resources of 23.2 million tons at a lithium oxide grade of 1.10%, accounting for 629,000 tons of lithium carbonate equivalent (LCE), up from 614,700 tons of LCE reported in the 2024 report. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for the project report and click here for the plant profile.

The initial capital costs for the projects dropped from US$266 million to US$191 million, while production remains at 177,000 tons per year of spodumene concentrate.

The mine's life has been extended from 14 to 18.5 years due to larger estimated resources. The lifetime extension boosts the post-tax net present value of the project from US$1.31 billion to US$1.45 billion, compared to last year's feasibility study.

The company's investment payback has been reduced from 41 months to 26 months; Last year's feasibility study projected a higher annual gross revenue of $US$417 million during the mine's life, compared to US$343 million in the September report.

The Bandeira project has a site operating cost of US$378 per ton of 5.2% lithium oxide spodumene concentrate produced, making it one of the lowest-cost hard rock spodumene developments globally.

According to Brazil's National Mining Agency, in 2023, the nation produced 264,000 tons of spodumene concentrate with a lithium oxide content of 5.7%, equivalent to 15,200 tons of lithium oxide, representing an 83.6% increase compared to 2022. The agency has not published any data from 2024.

IIR is tracking two lithium and two spodumene plants already operational in Brazil's Minas Gerais state.

Since 2023, the lithium market has been negatively impacted by the slowdown in demand for electric vehicles, as well as the commissioning of multiple lithium projects worldwide. But in August, prices rose significantly after Contemporary Amperex Technology Company, Limited's (Ningde, China) (CATL) Jianxiawo mine in China, which accounts for about 3% of global output, was forced to shut down when its license expired.

A report by Cochilco, the Chilean mining authority, suggests prices have dropped since August, after Jianxiawo's earlier-than-expected restart. However, prices have stayed over the floor of US$8,100 per ton experienced in June, which could signal an end to the downward trend.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).