PERTH (miningweekly.com) – A preliminary technical study for the potential production of lithium carbonate at the North American Lithium (NAL) operation, in Quebec, has estimated that the project could deliver total earnings before interest, taxes, depreciation and amortisation of A$7.5-billion.

ASX-listed Sayona Mining on Wednesday reported that the preliminary study was based on the production of 372 000 t of lithium carbonate over a project life of 16 years, with the project purchasing 2.9-million tonnes of spodumene from NAL.

The standalone project could generate a pre-tax net present value of A$3.2-billion and an internal rate of return of 60%, with the project generating gross revenues of $9.49-billion.

“This study shows the outstanding value we have generated from our strategy of acquiring a brownfield plant with existing assets. With an accelerated pathway to lithium carbonate production, we are rapidly advancing our goal of becoming a fully integrated producer of lithium chemicals,” said Sayona MD Brett Lynch on Wednesday.

“Significantly, NAL is set to become the only lithium operation with a concentrator and carbonate plant all on the same site in North America. Lithium demand continues to increase and the Canadian and US governments have clearly shown their intentions to develop a North American supply chain, from mining to processing and manufacturing.

“Québec has shown a clear vision of becoming a leader in this new industry, maximising the benefits of its sustainable hydropower, world‐class infrastructure and proximity to key battery markets. A new lithium carbonate plant will make a significant contribution in creating a green and sustainable supply chain, delivering new jobs and investment for local communities, together with a low carbon footprint,” Lynch said.

Based on the outcomes of the preliminary studies, Sayona was now planning a definitive technical study for the lithium carbonate concentrate production, and subject to the study’s timing and outcomes, a carbonate plant could be commissioned as early as 2026, the company told shareholders.