Pilbara Minerals Limited P680 expansion
NAIF will facilitate a $125m loan to Pilbara Minerals Limited’s Pilgangoora Operations in Western Australia.
About the Project
Pilbara Minerals will receive a $125m, 10-year NAIF loan to support the expansion of its Pilgangoora operation in the Pilbara region of Western Australia.
The NAIF loan will facilitate the construction of:
- the P680 Project expansion to the Pilgan Plant to deliver an additional 100,000tpa of spodumene concentrate production, and
- the 5Mtpa crushing and ore sorting facility, that will replace the existing contracted crushing facility and will enable future expansions that could ultimately deliver up to 1Mtpa of spodumene concentrate capacity across the entire Pilgangoora operation.
The NAIF loan will be provided alongside a loan from Export Finance Australia for the US$ equivalent of $125m, bringing the level of support from the Australian Government to $250m. Both new loans will rank alongside commercial bank financing for Pilbara Minerals.
In supporting the Pilgangoora expansion, the loans assist in increasing Australia’s production capacity of spodumene concentrate, a key raw material for lithium-ion batteries, and an important element in Australia’s offering as a globally trusted supplier of critical minerals. This supports the world’s transition away from non-renewable energy sources.
The project is estimated to create 355 jobs annually in the first two years of construction and an additional 320 jobs each year during operational life of the mine.
Through their Indigenous Engagement Strategy (IES), Pilbara Minerals has commitments to continue building their relationship with the local Traditional Owners, the Nyamal people, including through building their cultural capability, identifying employment opportunities and supporting strong procurement outcomes specifically targeting local Indigenous businesses and businesses owned by the Nyamal people.
Economic Impact and Public Benefit
Independent analysis has forecast that the Project will have a positive impact of $1.4bn to NAIF’s northern Australia region over the 18-year life of mine modelled. This is a x11 public benefit ratio to loan amount. This will primarily be in the form of boosting Gross Regional Product in the Pilbara region.