LAS VEGAS (KLAS) — The most important investor within the Nevada Rhyolite Ridge lithium mine introduced Wednesday it’s pulling out of the venture.
Rhyolite Ridge acquired approval to start building from the Bureau of Land Administration (BLM) on Oct. 24, 2024 — the primary U.S. lithium venture permitted by the Biden administration. It’s anticipated to enter manufacturing in 2028 with the assistance of a $996 million mortgage from the U.S. authorities.
South Africa-based Sibanye-Stillwater, a multinational firm identified for gold and platinum mining, cited dropping lithium costs. Markets have been unstable as worldwide efforts to extract the mineral are rising to provide demand for electrical automobile batteries. Some studies point out there may be really a glut within the present provide coming from China, Australia and Chile.
A rendering of a processing facility deliberate at Ioneer Ltd’s lithium mine, scheduled to start building in 2025, is displayed by the U.S. Bureau of Land Administration throughout a information convention in Reno, Nev., Thursday, Oct. 24, 2024, asserting the bureau’s approval of a allow for the venture. (AP Photograph/Scott Sonner)
Sibanye-Stillwater cited an October venture replace from Ioneer, the Australian mining big that owns the Rhyolite Ridge venture. The choice gave the impression to be purely financial.
Lithium costs are presently $75,750 per ton.
Ioneer stated the choice wouldn’t have an effect on the venture, positioned in Esmeralda County about midway between Las Vegas and Reno.
“Ioneer’s focus remains on bringing this world-class project online and will look to move forward with a strong equity partner who can help see the Project into production,” in response to a Wednesday assertion. A extra detailed assertion submitted after this story was posted seems on the backside of this text.
Every week after the BLM permitted Rhyolite Ridge, the federal government was sued by the Middle for Organic Variety, which has been combating to guard an endangered wildflower referred to as Tiehm’s buckwheat that has solely been discovered on the web site of the mine. Ioneer was not named within the lawsuit.
“Sibanye Stillwater’s decision to pull out of Rhyolite Ridge highlights all of the problems with this project,” Scott Lake, legal professional for the Middle for Organic Variety, stated in a press release.
“The mine poses an existential threat to the only known population of the endangered wildflower Tiehm’s buckwheat. Ioneer and the federal officials that approved and funded this project knew the risks but proceeded anyway with a highly irregular and rushed permitting process that violated numerous laws,” Lake stated.
“We need lithium for the green energy transition, but it can’t come at the cost of extinction or the scrapping of our bedrock environmental protections. We hope this news prompts federal officials to re-think their unfortunate decision to approve and fund this disastrous project,” he stated.
Ioneer assertion:
“Ioneer has mutually agreed with Sibanye-Stillwater to dissolve our planned joint venture following comprehensive discussions.Ioneer will undertake a process to identify a strong equity partner to ensure Rhyolite Ridge proceeds to production.Since our work first began in 2017, Ioneer has successfully navigated a global pandemic and unexpected permitting and project delays, underscoring the strength of our project’s economics.To better respond to potential shifts in the macroeconomic environment, Ioneer adjusted its risk management strategies to prepare for the possibility of scenarios like those we currently face.Following advancements in the project since 2021, we are confident this development, which is common with projects of this complexity and magnitude, will better allow the company to find a new partner who will meet or exceed the prior equity total.Rhyolite Ridge is permitted and construction ready, and we are focused on advancing our work to secure a Final Investment Decision. The project’s minerology allows for onsite extraction and processing of lithium and boron, making it a once-in-a-generation deposit.Ioneer owns 100% of the Project and closed a $996 million loan from the U.S. Department of Energy Loan Programs Office via the Advanced Technology Vehicles Manufacturing program, which remains in force.We look forward to working with our offtake agreement partners, bringing this project online, and fortifying the nation’s domestic supply chains.”— Bernard Rowe, Managing Director, Ioneer
