The expansion, known as the P2000 project, is expected to produce two million tonnes of spodumene concentrate per year when fully operational in 2029, according to the company. PLS said the project adds 23 per cent to the overall reserve tonnes at Pilgangoora, lifting its ore reserve to 249.2 million tonnes at 1.24 per cent lithium hydroxide, a 31 per cent increase in contained lithium.
Managing director and chief executive Dale Henderson said the expansion would transform the scale and competitive position of the company. "The substantial increase in Pilgangoora's ore reserve reinforces the scale and quality of this world-class orebody and provides a strong foundation for the P2000 expansion announced today," he said.
The project also includes a maiden underground ore reserve of 46.5 million tonnes at 1.50 per cent lithium oxide, which Henderson said establishes a substantial higher-grade inventory beneath existing open pits and provides further opportunity to create value over time.
Recent infrastructure investments at the operation are expected to reduce operating costs and improve productivity, while providing capacity to support the increased scale of the expansion, Henderson said.
The Western Australian government is backing the project with an $11 million investment to upgrade Wodgina Access Road, a freight route connecting Pilgangoora with Great Northern Highway and Port Hedland.