- Pilbara Minerals (PLS) and Calix (CXL) officially agree to form an unincorporated joint venture to develop a demonstration plant at the Pilgangoora project in Western Australia
- The plant is being developed to produce lithium salts via an “innovative” midstream refining process using Calix’s calcination technology
- The parties will also form an incorporated JV for the potential commercialisation of the “value-added” refining process
- Commercial terms for the JV were drafted in June this year and will see Pilbara Minerals take on a 55 per cent participating interest, with Calix to hold the balance
- PLS shares closed 0.9 per cent lower at $4.42, and CXL shares closed 3.01 per cent higher at $1.64
Pilbara Minerals (PLS) and Calix (CXL) have officially agreed to form a joint venture to develop a demonstration plant at the Pilgangoora project in Western Australia.
The plant is being developed to produce lithium salts via an “innovative” midstream refining process using Calix’s calcination technology.
The parties will also form an incorporated JV for the potential commercialisation of the “value-added” refining process.
The commercial terms for the JV were drafted in June this year and will see Pilbara Minerals take on a 55 per cent participating interest, with Calix to hold the balance.
With the formalisation of the JV, Pilbara Minerals Managing Director and CEO Dale Henderson said the mid-stream project had the potential to be a “game changer” for the industry.
“If successful, we will be able to deliver a superior chemical intermediary product to market compared to spodumene concentrate,” Mr Henderson said.
“This intermediate product offers a higher concentration in lithium and less impurities whilst being produced through a new process that reduces CO2 emissions compared to the traditional process route for hard rock spodumene chemical conversion.”
Each party will fund its share of operating, capital costs and licensing of technology.
Calix will hold a ten per cent in-kind contribution, recognised on budgeted estimated construction costs of the plant, in return for providing a licence for its technology to the JV for lithium processing.
A final investment decision for the development of the plant is due for completion by the June quarter of 2023.
To support this, the parties are progressing engineering design work and feasibility studies and have also begun a market engagement program.
PLS shares closed 0.9 per cent lower at $4.42, and CXL shares closed 3.01 per cent higher at $1.64.