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Energy|PROJECT|Projects|supply-chain
Energy|PROJECT|Projects|supply-chain
energy|project|projects|supply chain

Plateau PEA confirms Peru-based project economics

5th February 2020

By: Marleny Arnoldi

Deputy Editor Online

     

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TSX-V-listed Plateau Energy Metals this week shared its Falchani project preliminary economic assessment (PEA), which finds that the project can become a large, long-life producer of low cost and battery-grade lithium carbonate (Li2CO3).

The PEA envisions an average production capacity of about 63 000 t/y over 33 years, with steady state production being able to reach 85 000 t/y of Li2CO3.

The company highlighted that the initial capital expenditure on the project would be about $587-million, with an internal rate of return of 19.7% and a 4.7-year payback period.

At a base case of $12 000/Li2Co3, the project has a net present value of $1.55-billion.

The project has low second-quartile operating costs of an average of $3 958/t of Li2CO3 over its mine life.

“The battery supply chain is evolving and growing rapidly and as a result, significant amounts of lithium chemical supplies for batteries are required to meet the over $450-billion of capital committed by vehicle manufacturers and battery plants.

“What we have at Falchani is a project that has the potential to respond as the market grows, with a low impurity battery grade lithium chemical product, a long mine life set to last through cyclical price environments, and importantly, the potential to be one of the greener lithium projects in the future,” said Plateau CEO Alex Holmes.

Edited by Mariaan Webb
Creamer Media Senior Deputy Editor Online

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