Sayona Mining Limited (ASX:SYA) is making waves in the lithium industry by establishing North America’s first vertically integrated lithium plant. This groundbreaking project promises to revolutionize the supply chain, from mine to concentrate to downstream chemicals, all within the same site. Let’s delve into the details of this exciting development.
The North American Lithium (NAL) Operation
Sayona’s flagship project, the NAL operation, was acquired in partnership with Piedmont Lithium Inc. NAL spans 1,493 hectares near La Corne township in Québec’s Abitibi-Témiscamingue region. The project lies just 60 km north of Val d’Or, a major mining service center. NAL is a brownfield open pit mining operation with a concentrator that has received over C$400 million in investments from previous owners.
Achieving Milestones
In August 2023, Sayona announced the first shipment of NAL spodumene (lithium) concentrate to the international market, marking a significant milestone. This achievement paves the way for the first revenues within two years of NAL’s acquisition. Since March 2023, NAL has produced approximately 140,000 tonnes of spodumene concentrate, demonstrating its potential as North America’s largest source of hard rock lithium production.
The Unique Opportunity
What sets NAL apart is its integration. Sayona and Piedmont, along with the government of Quebec, are creating an integrated plant that produces everything from mine to concentrate to downstream chemicals—all on the same site. This approach ensures efficiency, quality, and control throughout the entire process. Moreover, NAL benefits from clean hydroelectric power and excellent transportation infrastructure.
Definitive Feasibility Study
Released in April 2023, the Definitive Feasibility Study confirmed NAL’s value. Key data includes:
- Pre-tax net present value (NPV) estimated at approximately A$2.2 billion (double the Pre-Feasibility Study estimate)
- Pre-tax internal rate of return (IRR) of 4,701%
- Total net revenue of A$7.6 billion
- Total project EBITDA of A$3.7 billion
- A 20-year life of mine with annual average concentrate production of 226,000 tonnes during the first four years of operation
Sayona Mining’s NAL project represents a game-changing leap forward for North America’s lithium industry. As the first vertically integrated lithium plant, it promises to reshape the market and contribute significantly to the electrification revolution. Stay tuned for further updates as NAL continues to make history.
