Pilbara cashed-up for new project

Pilbara Minerals has been awarded a $20 million federal government grant to develop a new demonstration-scale chemicals facility within its Pilgangoora project.

Awarded under the ‘modern manufacturing initiative’, the cash will be used as part of a joint venture set to be entered between Pilbara and New South Wales aquaculture business, Calix.

The companies are working to develop the Mid-Stream project, a demonstration plant aimed to eventually produce lithium salts from fines-flotation spodumene concentrate.

The project would use a new refining process that Pilbara has been developing with Lycopodium Minerals and Calix as part of a scoping study started in May last year.

According to Pilbara, the project is hoped to yield a “value-added” lithium raw material that could then be sold commercially.

Funding will go towards design, procurement, construction and commissioning costs for the demonstration plant.

Pilbara managing director Ken Brinsden said he believed the technology presented a big step forward for the hard-rock lithium raw materials supply chain.

“The Mid-Stream Project is expected to facilitate waste minimisation in key end-use markets, which decarbonises the hard-rock lithium supply chain and creates competitive “value-added” products that can serve global markets directly,” Mr Brinsden said in a statement.

“We are pleased to be partnered with Calix and their fantastic team, to build-on the technology and ultimately market it around the world.”

Pilbara and Calix both say negotiations to form the joint venture are “well-progressed” and are hoping to finalise the agreement by early next quarter.

A final investment decision on Mid-Stream is expected in late 2022 to early 2023.

Pilbara Minerals shares were up 3.85 per cent at 12:53pm AEST to trade at $2.70.