The Moblan project, one of the sites in Nord-du-Québec where mining company Sayona plans to build a lithium mine, would have a net present value of $2.2 billion, assuming the price of this vital metal in battery manufacturing rises again .
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A feasibility study presented by the mining company on Monday evening shows that a mine at the Moblan site, 130km north of Chibougamau, could produce 1.75 million tonnes of ore per year. Around 300,000 tons of 6% lithium concentrate could be produced from this ore.
According to the study, exploitation of the deposit would generate nearly $4 billion before taxes over 20 years, a net amount that drops to just under $2.2 billion after taxes.
To achieve this, the mining company expects an average lithium concentrate price of around US$1,990 (approximately CAN$2,650) per tonne for the duration of mine operations. But after a boom in 2022 due to an explosion in demand for lithium, the price of the metal collapsed in 2023, a decline that was not over at the start of the year.
A situation that the managers of Sayona, which also operates the North America lithium mine in La Corne, have also recognized.
“Sayona will now look to review timelines in light of current market conditions,” confirmed James Brown, interim president and CEO of Sayona, while assuring that he and his team are “confident that the current lithium market will recover in the medium term and enable Moblan .” to become a profitable and sustainable company for the benefit of everyone involved.
While the company waits for markets to improve, it will continue its work to obtain regulatory approvals, reach agreements with communities and finance construction of the mine.