Pilbara Minerals secures funding to support expansion at Pilgangoora
Published by Joe Toft,
Global Mining Review,
EFA has approved finance of the AUS$125 million, whilst NAIF has agreed to provide up to AUS$125 million in funding following NAIF Board’s investment decision. This funding demonstrates the Australian Government’s willingness to support businesses to play a key role in supplying critical minerals that will aid the global transition towards renewable energy sources.
The senior secured facility of up to AUS$250 million will support the construction of:
- The P680 project expansion to the Pilgan Plant to deliver an additional 100 000 tpy of spodumene concentrate production at an estimated capital cost of AUS$103 million.
- The 5 million tpy crushing and ore sorting facility, that will replace the existing contracted crushing facility and will facilitate future expansions that could ultimately deliver up to 1 million tpy of spodumene concentrate capacity across the entire Pilgangoora operation at a capital cost of AUS$194 million.
The facility is subject to final negotiation of facility terms, completion of detailed financing documents, as well as satisfaction of conditions precedent for financial close and drawdown, with the NAIF funding also subject to final approval from the Western Australian Government. It is expected that key terms of the facility will reflect current market conditions for the type and size of the debt being provided and is expected to be finalised during this quarter.
This support from the Australian Government will enhance the capital structure of the company and provide Pilbara Minerals with additional financial flexibility as it looks to expand and diversify its operations to participate further down the battery materials supply chain.
Commenting on the Facility from EFA and NAIF, Pilbara Minerals’ Managing Director and CEO, Dale Henderson, said:
“We are extremely pleased to have received notice of the funding approvals from both EFA and NAIF. The continued support from the Australian Government is a significant endorsement for Pilbara Minerals, an Australian company that is a major player in the growing global lithium supply chain and demonstrates the Australian Government’s commitment to our domestic critical minerals industry.
On behalf of Pilbara Minerals, I would like to thank the Australian Government for their ongoing support of our business, from the initial financing support provided by the Clean Energy Finance Corporation which allowed the Pilgangoora project to be built, to this additional support through EFA and NAIF that will assist with its continued expansion. This support has helped fuel the growth of a great Australian business of which we and our stakeholders are truly proud.
We look forward to continuing to work with the Australian Government as we pursue our growth and diversification strategy to further realise our ambition to become a fully integrated, sustainable battery materials supplier.”
Read the article online at: https://www.globalminingreview.com/mining/14112022/pilbara-minerals-secures-funding-to-support-expansion-at-pilgangoora/
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