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Lepidico, an Australian lithium developer has secured a US D 50 mn commitment from the US Government’s International Development Finance Corporation (DFC) for its lithium project at Karibib, Namibia.
Lepidico, an Australian lithium developer has secured a US D 50 mn commitment from the US Government’s International Development Finance Corporation (DFC) for its lithium project at Karibib, Namibia. The project, which is in two components – upstream and downstream, according to the feasibility study, requires USD 63 million in development capital to kick-start, which includes the development of a lithium mine and concentrator. The company will need another US D 200 million for the downstream component comprising the construction of a chemical conversion plant in Abu Dhabi.
About USD 50 mn out of the USD 63 mn needed for the project will come from the US Government’s International Development Finance Corporation, with the remaining portion requiring equity financing. The company is in discussions with potential strategic and off-take partners regarding this equity funding. The feasibility study, front-end engineering, and design for the initial phase are already completed, with the project poised for the construction phase.
The downstream component is the chemical conversion plant in Abu Dhabi. It is a vertically integrated project – mine, concentrator, and chemical plant. The chemical plant piece is still part of phase one, but it is in Abu Dhabi. Once funding is secured, the project’s timeline can progress efficiently.
Lepidico intends to place orders for critical long-lead equipment, such as mills, float cells, and thickeners. So, as soon as the funding is in place, the company will be looking at continuing with the detailed design and engineering. But the most important thing is to get those build slots for major mechanical equipment and pay for the deposits, stated Lepidico Managing Director, Joe Walsh. To bolster their fundraising efforts, Lepidico is working with a London-based specialist debt advisor.
The primary goal of the company is to finalise financial arrangements during the current quarter, a critical step that will enable construction to commence, subsequently creating potential job opportunities. The Lepidico lithium project is expected to generate 120 permanent jobs, with a sizable portion of those positions being filled from the nearby town of Otjimbingwe, south of the project’s operations in Karibib. Walsh said one of the challenges faced by the company is securing a skilled workforce.
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https://trendsnafrica.com/namibia-in-the-league-of-top-african-nations-poised-for-lithium-boom/
Lepidico’s project aims to produce approximately 5,000 tonnes of lithium hydroxide per annum for an impressive 14 years. In addition, the company explores the production of “strategic caesium and rubidium high-value products”, along with bulk by-products, collectively yielding an aggregate production of more than 7,000 tonnes per annum on a total lithium-equivalent basis. The company’s resource estimates underscore the project’s significant potential, with “inferred” resources of 570,000 tonnes grading 0.8% Li2O (plus caesium and rubidium), and Rubicon tailings upgrade yielding “indicated” resources of 71,000 tonnes at 1% Li2O.
