Sibanye approves R10.5bn in capex for Finland project
28 November 2022 - 19:59
by Andries Mahlangu
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Sibanye-Stillwater has earmarked about €588m or R10.5bn in capital expenditure for its Keliber project in Finland, one of the most significant lithium-bearing areas in Europe.
The capex will be funded through a combination of debt and equity.
The world’s largest producer of platinum group metals is investing in battery metals to benefit from the expected increase in the use of battery-run electric vehicles as countries switch from internal-combustion engines.
The Keliber project will be made up of Kokkola refinery and four opencast and three underground mining operations. All will be mechanised.
“We are delighted to advance and grow our presence in the European battery metals industry through Keliber, which we expect will be the first fully integrated European lithium hydroxide producer supplying the European market and is expected to have one of the lowest carbon emission footprints in the industry,” CEO Neal Froneman said in a statement on Monday.
“We look forward to working with all stakeholders to deliver this exceptional project which will contribute to the Finnish battery metals ecosystem as well as to the growth of our unique portfolio of green metals that reverse climate change,” Froneman said.
Construction will begin with Kokkola refinery, the longest lead time component of the Keliber project.
The Kokkola refinery will deliver benefits for the Finland fiscus and regional stakeholders, with local investment and support for regional suppliers, Sibanye said.
Keliber will employ about 300 people, with about 500 involved during the construction phase.
In February, Sibanye initially secured a 30.29% interest in Keliber before ramping it up to 50% plus one share in June. It now owns 85%.
Keliber is a mining and battery chemical company with an advanced lithium hydroxide project in the Kaustinen region in central-west Finland that intends to sustainably produce battery-grade lithium hydroxide using its own ore.
Sibanye’s push into green metals includes a €85m acquisition of French mining group Eramet Sandouville’s hydrometallurgical nickel processing facilities near Le Havre.
It has also made an initial $70m investment in the Rhyolite Ridge project in the US, which is expected to be one of the first large-scale US lithium projects to enter production.
Sibanye-Stillwater’s shares ended 1% higher at R45.11 on the JSE on Monday.
Support our award-winning journalism. The Premium package (digital only) is R30 for the first month and thereafter you pay R129 p/m now ad-free for all subscribers.
Sibanye approves R10.5bn in capex for Finland project
Sibanye-Stillwater has earmarked about €588m or R10.5bn in capital expenditure for its Keliber project in Finland, one of the most significant lithium-bearing areas in Europe.
The capex will be funded through a combination of debt and equity.
The world’s largest producer of platinum group metals is investing in battery metals to benefit from the expected increase in the use of battery-run electric vehicles as countries switch from internal-combustion engines.
The Keliber project will be made up of Kokkola refinery and four opencast and three underground mining operations. All will be mechanised.
“We are delighted to advance and grow our presence in the European battery metals industry through Keliber, which we expect will be the first fully integrated European lithium hydroxide producer supplying the European market and is expected to have one of the lowest carbon emission footprints in the industry,” CEO Neal Froneman said in a statement on Monday.
“We look forward to working with all stakeholders to deliver this exceptional project which will contribute to the Finnish battery metals ecosystem as well as to the growth of our unique portfolio of green metals that reverse climate change,” Froneman said.
Construction will begin with Kokkola refinery, the longest lead time component of the Keliber project.
The Kokkola refinery will deliver benefits for the Finland fiscus and regional stakeholders, with local investment and support for regional suppliers, Sibanye said.
Keliber will employ about 300 people, with about 500 involved during the construction phase.
In February, Sibanye initially secured a 30.29% interest in Keliber before ramping it up to 50% plus one share in June. It now owns 85%.
Keliber is a mining and battery chemical company with an advanced lithium hydroxide project in the Kaustinen region in central-west Finland that intends to sustainably produce battery-grade lithium hydroxide using its own ore.
Sibanye’s push into green metals includes a €85m acquisition of French mining group Eramet Sandouville’s hydrometallurgical nickel processing facilities near Le Havre.
It has also made an initial $70m investment in the Rhyolite Ridge project in the US, which is expected to be one of the first large-scale US lithium projects to enter production.
Sibanye-Stillwater’s shares ended 1% higher at R45.11 on the JSE on Monday.
mahlangua@businesslive.co.za
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