PERTH, WESTERN AUSTRALIA--(Marketwire - March 2, 2011) -Talison Lithium Limited ("Talison" or the "Company") (TSX:TLH)announces final approvals and details on the Stage 2 expansion ofproduction capacity of the chemical-grade plant at the GreenbushesLithium Operations (the "Expansion").
Highlights
- The Board has given final approvals for the Expansion and site works to commence in April 2011
- Expansion will more than double total nameplate production capacity at the Greenbushes Lithium Operations to approximately 740,000 tonnes per annum lithium concentrate (approximately 110,000 tonnes per annum lithium carbonate equivalent ("LCE"))
- Total capital costs of the Expansion are estimated at between A$65 to A$70 million
- Commissioning of the Expansion is anticipated to commence in the second quarter of calendar 2012
- Expansion ensures Talison is well positioned to increase sales and provide the lithium market with security of supply to meet expected future growth
- Talison expects to release an updated reserve statement incorporating the improved operating economics from the Expansion by June 2011
Expansion of the Greenbushes Lithium Operations
The Stage 1 expansion at the Greenbushes Lithium Operations wascompleted in December 2010. Following completion of the Stage 1expansion, total nameplate production capacity at the GreenbushesLithium Operations has increased to approximately 315,000 tonnes perannum lithium concentrate (approximately 47,000 tonnes per annum LCE).
In December 2010, Talison announced that in response to continuedstrong demand for lithium concentrate the design of the Expansion wasbeing revised to allow for further increases in production capacityabove the original design.
The engineering design work to define the scope and capital cost ofthe revised Expansion has now been completed. The Expansion comprises anew, purpose built, large scale chemical-grade lithium concentrateproduction facility. The Expansion is expected to substantially reduceTalison's unit operating costs through improved lithium recovery andeconomies of scale.
The Expansion will more than double the current total productioncapacity of the Greenbushes Lithium Operations, with total nameplateproduction capacity increasing to approximately 740,000 tonnes per annumlithium concentrate (approximately 110,000 tonnes per annum LCE).
Total capital costs of the Expansion are estimated at between A$65 toA$70 million and will be funded by current cash reserves which includethe net proceeds of the recently completed equity financing. Key longlead time items for the Expansion, including ball mills have beenordered, and tenders for the majority of the necessary equipment havebeen issued.
Talison is in final negotiations with the preferred constructioncontractor and expects to enter into the construction contract for theExpansion and commence site works at the Greenbushes Lithium Operationsduring April 2011. Commissioning of the Expansion is anticipated tocommence in the second quarter of calendar 2012.
Discussions with new and existing customers for sales contracts forthe increased production from the Expansion are continuing. Globaldemand for lithium is expected to accelerate significantly in comingyears driven by demand for lithium-ion batteries for use in mobiletechnology, energy grid stabilisation and electric vehicles, and theExpansion will enable Talison to provide its customers with the securityof supply and confidence to continue to expand their own operations.
Peter Oliver, Chief Executive Officer said, "Talison has a history ofincreasing production capacity in response to world demand for lithium,and has previously completed several successful expansions. ThisExpansion is in-line with Talison's strategy to leverage off thestrengths of its large, high-grade lithium deposit at the GreenbushesLithium Operations and its technical expertise in the production oflithium concentrate."
"After completion of the Expansion, Talison's production capacitywill be broadly equivalent to the size of the total global lithiummarket in 2010. An expansion of this scale demonstrates Talison'sconfidence in the outlook for the lithium market, and enables Talison toprovide its customers with security of supply to meet the expectedfuture growth in demand for lithium-ion batteries in the years ahead."
Greenbushes Lithium Operations Reserve Statement
Talison has been undertaking in-fill drilling at the GreenbushesLithium Operations, with the initial objectives of upgrading the lithiummineral resources and improving the conversion of lithium mineralresources to lithium mineral reserves. The in-fill drilling has now beencompleted and Talison expects to release an updated statement oflithium mineral reserves and mineral resources by June 2011. The updatedstatement of lithium mineral reserves and mineral resources willincorporate results from the in-fill drilling and the improved operatingeconomics from the Expansion.
About Talison
Talison is a leading global producer of lithium. Talison mines andprocesses the lithium bearing mineral spodumene at the GreenbushesLithium Operations in Western Australia. In addition, Talison exploresfor lithium at the Salares 7 lithium project made up of seven salarslocated in Region III, Chile. Talison has an extensive, well establishedglobal customer network and a leading position in the growing Chinesemarket.