Bacanora in advanced discussions with Asian offtake partner

JOHANNESBURG (miningweekly.com) – Aim- and TSX-V-listed lithium and borates company Bacanora Minerals is currently in advanced discussions with a “significant Asian offtake partner” for the supply of battery-grade lithium carbonate from its Sonora lithium project, in Mexico.

Bacanora executive chairperson Mark Hohnen stated on Tuesday that the company anticipated commissioning an operation capable of delivering 17 500 t/y of battery-grade lithium carbonate for the first two years, following which it anticipated expanding its operations to 35 000 t/y of lithium carbonate. He added that Bacanora was planning to start production of lithium carbonate at Sonora in 2019.

Meanwhile, Hohnen noted that the ongoing feasibility study at Sonora continued to focus on optimising the process flow sheet for the production of battery-grade lithium carbonate. He added the company was delivering a strategy to optimise the projects operating costs and energy requirements given the continued strengthening in reagent input costs. 

“With this in mind, we now believe it will take longer than originally anticipated to ensure that the optimum energy supply for the kiln is selected and therefore the feasibility study is expected to be completed in the [UK] summer of 2017,” Hohnen commented. 

Further, he highlighted that rising costs were relevant to all Bacanora’s peers and were being, “importantly” experienced in tandem with a rise in lithium carbonate pricing. 

Hohnen moreover pointed out that securing an offtake partner was a key component in the company’s strategy to commercialise the Sonora deposit. “We are therefore encouraged by these advanced discussions which, in our view, provide third party validation of the processing route we have put in place at our pilot plant, where battery grade lithium carbonate has been produced continuously for over six months.”

He noted that in tandem with securing an offtake partner, work continued on the project’s feasibility study to significantly reduce any impact on its development schedule.

“With the completion of Sonora’s feasibility study expected in 2017, the year ahead is anticipated to be a transformational one for Bacanora, characterised by the development of this world class asset,” Hohnen concluded.