James Bay Lithium Project in Quebec, Canada. Source: AKE.
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  • Allkem (AKE) will soon begin construction at its James Bay Lithium Project after releasing a Feasibility Study which confirmed the asset’s potential
  • The study more than doubled the project’s net present value (NPV) to US$823 million (A$1.16 billion) post-tax, while capital costs will total US$285.8 million (A$400.7 million)
  • The Canadian project has a Mineral Resource of 40.3 million tonnes (Mt) at 1.4 per cent lithium oxide and will produce 321,000 tonnes per annum of spodumene concentrate
  • AKE advises basic engineering and procurement of long-lead items has commenced, with construction to begin in Q3 2022 and commissioning expected by 2024
  • Shares in Allkem are down 1.31 per cent at $9.07 per share

Allkem (AKE) will begin construction at its James Bay Lithium Project in the second half of next year after releasing a Feasibility Study that confirmed the asset’s potential.

The Feasibility Study more than doubled the project’s net present value (NPV), when compared to the Preliminary Economic Assessment.

The Quebec-based asset now attracts an US$823 million (A$1.16 billion) post-tax NPV, while capital costs should total US$285.8 million (A$400.7 million).

The lithium project has a Mineral Resource of 40.3 million tonnes (Mt) at 1.4 per cent lithium oxide and a Maiden Ore Reserve of 37.2 Mt at 1.3 per cent lithium oxide.

It’s estimated James Bay will produce an average of 321,000 tonnes per annum of spodumene concentrate over its 19-year mine life.

The average cash operating cost should total US$333 per tonne (A$468 per tonne) of 5.6 per cent lithium oxide concentrate.

Allkem Managing Director and Chief Executive Officer Martin Perez de Solay said the study confirmed James Bay was a sustainable and affordable operation.

“The Feasibility Study results clearly demonstrate the exceptional value that will be generated for all stakeholders through the development of this project.” he said.

“It will utilise clean hydro-power to provide lithium into the EV and other low carbon industries.

“Supply chain and logistics emissions can be minimised by supplying into the rapidly expanding markets in North America and Europe.”

Following the release of the study, ASK has commenced with basic engineering work and procurement of long-lead items.

The company hopes to begin construction at the site by Q3 2022, while commissioning of the project is expected by 2024.

Shares in Allkem were down 1.31 per cent at $9.07 per share at 3:01 pm AEDT.

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