Premier Confident in Keeping Lithium Production Costs Under $750 Per Ton
Premier African Minerals Limited has expressed confidence that the all-in projected cost for producing spodumene concentrate (SC6) at its Zulu Lithium project will remain under US$750 per ton, delivered to China, including all administrative and overhead costs.
By Rudairo Mapuranga
According to Premier African Minerals CEO George Roach, this cost estimation is based on the Zulu Plant reaching an output level of 4,000 tons per month.
He emphasized that these projections do not account for potential additional revenue streams, such as tantalum recovery or further expansions of the plant’s flotation section.
“Premier would like to take this opportunity to remind shareholders that Premier’s internal estimate (including Zulu) of the all-in projected cost, which has not been independently verified, on a delivered-China-port basis, inclusive of all administrative and overhead costs, is less than US$750 per ton SC6 when plant output reaches 4,000 tons per month,” Roach said.
He further clarified that the cost per ton excludes several factors: “This cost excludes any recovery of tantalum, a potential double expansion of the flotation section of the plant based on the over-capacity in the comminution circuit, potential from high-purity quartz, and the potential in the additional claims established in the EPO region.”
Additionally, Premier confirmed the robustness of the flotation units supplied by ENPROTEC, which are crucial to achieving the desired SC6 grade. The plant has already successfully produced a spodumene concentrate with a lithium oxide (Li2O) content of 6.2%, surpassing the standard SC6 specification.
The suppliers are committed to fine-tuning the plant to consistently achieve the required grade and recovery rates at the target output. These adjustments, which will first be tested on a laboratory scale, include changes to reagent dosing points, agitation speeds, flow rates, slurry densities, and cell residence times. Premier does not anticipate the need for additional plant or equipment at this time.