Lepidico is targeting 2025 to start site works and mining operations at the Karibib Lithium Project.
The Karibib Lithium Project comprises the brownfield re-development of the Rubicon and Helikon mines.
The Rubicon and Helikon deposits concentrate is estimated to grade 2.5-3.5% Li2O over the life of the mine and over 3.0% Li2O for at least the first five years of operation.
Lepidico states in its September 2024 annual financial report that it also targets securing a strategic partner and finance for the Karibib Project in 2024.
The company is working on a binding concentrate offtake agreement with the US trading company that has been marketing Karibib material since April 2023.
Unsolicited interest in Karibib concentrate, along with finance, has also been received from other trading companies.
Lepidico Chemicals Manufacturing signed a binding offtake agreement in December 2021 with Traxys Europe SA.
Traxys provides sales-marketing, logistics and trade finance for 100% of lithium hydroxide manufactured during the first seven years of operation or 35,000 tons.
In addition, Traxys is acting as an agent for 100% of the production of caesium sulphate solution from the Khalifa Economic Zones Abu Dhabi chemical plant.
Lepidico says it continues to work with Traxys to place the lithium hydroxide produced from the Phase 1 Khalifa Economic Zones Abu Dhabi plant on mutually beneficial, sustainable terms and effectively manage price risk for suppliers and consumers throughout the cycle.
Offtake negotiations have slowed due to the prevailing weakness in lithium prices, which has caused many consumers to continue to delay making new commitments for lithium chemicals.
Initiatives for further refining and developing caesium chemicals continue collaborating with a leading chemical company.
A body of work has also started with a world-leading research university to evaluate rubidium and support its use as a substitute for caesium in specific applications.
Letters of Intent are in hand from customers in the UAE for volumes exceeding the expected production of amorphous silica, SOP and gypsum-rich residue.
Total capital expenditure under the Karibib options study has fallen to less than US$50 million (2024 real) with an increased contingency of 20% on owner’s costs versus US$63 million before sunk costs in the 2022 control estimate.
A revised estimate for unit operating costs shows a modest 4% increase.
The average annual financial report unit operating expenses for the first five years of operation are estimated at US$319/ tons free on board and US$392/tons in cost, insurance, and freight for the average production of a 3.0% Li2O concentrate.
Most recently, Lepidico made a preliminary submission for grant funding for the sustainable production of critical minerals under the (US) Industrial Base Analysis and Sustainment (IBAS) Program to develop production capability in the US, Canada or the UK.
This initiative optimises the manufacture of caesium (Cs) and rubidium (Rb) chemicals for vital industrial applications in these markets. The USA defines caesium and rubidium as critical minerals with current supply available only from Foreign Entity of Concern countries.
