Lithium miner Pilbara Minerals has started commissioning its Ngungaju plant which it acquired from Altura Mining earlier this year.
The Ngungaju plant, now part of Pilbara Minerals’ Pilgangoora operation in Western Australia, is expected to produce between 180,000 dry metric tonnes and 200,000dmt of spodumene concentrate each year, following a ramp-up to full production in mid-2022.
Pilbara Minerals acquired the plant (also formerly known as Pilgangoora) from Altura's receivers in January and approved its restart in late June, having budgeted $39 million.
The company expects the restart will boost its overall annual output to 560,000-580,000dmt.
“This is a tremendous result, particularly considering the challenging environment in the WA resources sector for people, equipment and services,” he said in an ASX announcement.
It comes less than a month after Pilbara Minerals awarded a $70 million contract extension to MACA to continue open-pit mining services at Pilgangoora – which also includes the Pilgan plant.
Pilbara Minerals’ shares were up nearly 6 per cent at 1:40pm AEDT to trade at $1.98.