The POSCO Pilbara Lithium Solution – a joint venture between Pilbara Minerals and POSCO – has secured a KRW$600 billion (approx AU$675 million) debt facility from Korean government-owned banks to fund the development and commissioning of a 43ktpa lithium hydroxide monohydrate chemical facility in Gwangyang, South Korea.
The debt facility represents the remaining 60 per cent of the forecast funding required for the development of the chemical facility, with the equity funding already provided by the JV participants.
The facility has a seven-year term and comprises both fixed and variable interest rates.
Construction of the new chemical facility is on schedule, with the first 21,500tpa train scheduled to commence commissioning from late 2023, and the second 21,500tpa train from the March 2024 quarter.
Pilbara Minerals will be the sole supplier of spodumene concentrate (up to 315,000tpa) to the new facility. The debt facility is non-recourse to Pilbara Minerals, with the security provided by the POSCO Pilbara JV Company and limited to the land, building, plant, and equipment of the chemical facility.
Pilbara Minerals’ Managing Director and CEO, Dale Henderson, said, “We are delighted that the Joint Venture has secured this debt funding from leading Korean banks on commercially favourable terms, positioning the POSCO Pilbara JV Company to complete construction and commissioning of its new 43ktpa lithium hydroxide chemical conversion facility in South Korea.
“Construction of this world-class facility is already well underway, with the first train of 21,500 tonnes per annum scheduled to start commissioning from late this year, followed by commissioning of the second 21,000tpa train in the March 2024 Quarter.
“Our 18 per cent interest in the POSCO Pilbara JV (with an option for Pilbara to increase to 30 per cent) represents a key element of Pilbara Minerals’ downstream processing strategy, enabling the company to become an integrated lithium raw materials company.
“Building on our strong relationship with POSCO, we are delighted to be jointly establishing a strong foothold in South Korea’s emerging battery materials industry at the door step of established major battery manufacturers.”
