Project Description
A definitive feasibility study (DFS) has revealed attractive Phase 1 economics for the Karibib project. The project has been sized for attractive financial returns at moderate production levels, with a 460 times scale-up from continuous pilot plant capacity.

Karibib has 6.7-million tonnes of ore reserves grading 0.46% lithium oxide, 2.26% rubidium and 320 parts per million caesium, a 60% conversion from mineral resources of 11.24-million tonnes, which highlights the potential for further ore reserve expansion.

The DFS is based on an integrated mine, concentrator and chemical plant.

Phase 1 envisages a modest-scale commercial L-Max plant, processing a lithium-mica concentrate feed at 6.9 t/h to produce about 4 900 t/y of nominal battery-grade lithium hydroxide monohydrate and a suite of high-value and bulk by-products over 14 years.

Total production over the life-of-mine is estimated at 773 000 t.

Converting other products to lithium carbonate equivalent provides implied total production of more than 7 000 t/y lithium carbonate equivalent.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has an after-tax net present value, at an 8% discount rate, of $221-million and an internal rate of return of 31% ungeared, with a payback from the start of production of 37 months.

Capital Expenditure
Preproduction capital for the mine, concentrator and chemical plant is estimated at $139-million.

Planned Start/End Date
A final development decision is expected by May 2021.

Latest Developments
Tthe environmental- and social-impact assessment (ESIA), and environmental and social management plan (ESMP) have been completed for the project. This is in compliance with the provisions of Namibian mining and environmental legislation, and according to Equator Principles and International Finance Corporation environmental and social processes.

These documents have been submitted for the renewal of the project’s environmental compliance certificate and also loaded into the project finance data room.

The ESIA and ESMP were completed by Risk-Based Solutions (RBS).

The project has been designated as Category B, which is described as “business activities with potential limited adverse environmental or social risks and/or impacts that are few in number, generally site-specific, largely reversible, and readily addressed through mitigation measures”.

Further, the ESIA found that “the proposed Karibib project development in the ML 204 poses localised negative impacts on the receiving environment, with greater offset /trade-offs/ benefits in the form of socioeconomic and environmental reclamation of the currently abandoned mine sites. The extent of the proposed mining and minerals processing and ongoing exploration operations are limited in area extent with respect to the orebody, the Rubicon and Helikon 1 pits and supporting infrastructures areas”.

The favourable findings from the ESIA and ESMP are expected to underpin a competitive debt finance package for the Phase 1 project, to be provided by development finance institutions, export credit agencies and commercial lenders.

Key Contracts and Suppliers
Strategic Metallurgy; Lycopodium Minerals; Australian Mine Design and Development; Knight Piésold Consulting; Project Definition; Chris Movirongo Investment; Snowden Mining Consultants; BMI; Pells Sullivan Meynick; Antonio Mota; BT Connect; TAK Industrial Mineral Consultancy; BG &E; GHD LLC; Addiza Power Consultants; Risk Based Solutions; Lanasera; Sustainable Mining Strategies; Formate Brines; AdvanSci; University of Waterloo; Ontario; Radiation Advice and Solutions; SGS; ALS; End to End Visuals; GiG Agri-Advice; Twahangana HR Consulting; Environmental Compliance Consultancy; Geoscientific Mineral Resources; and RBS (ESIA and ESMP).

Credit: ENGINEERING NEWS
https://www.engineeringnews.co.za/print-version/karibib-lithium-project-namibia-2020-07-31