SIBANYE-Stillwater has secured a €500m (R10bn) “green” financing package to pay for its proposed Keliber lithium mine project in Finland which is intended to provide lithium to the European battery market.
Sibanye-Stillwater bought into Keliber in 2021 and raised its stake to 84.96% by October 2022. Keliber is part of a strategic diversification into battery minerals by Sibanye-Stillwater which also included acquiring the Sandouville nickel refinery near Le Havre in France during 2022 to produce nickel sulphate, also targeting the European battery supply chain.
Sibanye-Stillwater yesterday announced that a pre-feasibility study was underway at Sandouville to determine the viability of producing pCAM (pre-cursor cathode active material) through a novel, in-house process.
The group added “a positive outcome from the definitive feasibility studies will enable a final investment decision on the repurposing of the Sandouville refinery to pCAM production.
Ahead of that decision Sibanye-Stillwater has decided to terminate a major supply contract to the refinery at a cost of $37m along with other related contracts where negotiations are continuing.
Sibanye-Stillwater CEO Neal Froneman commented that, “despite the significant operational and cost improvement achieved recently, the Sandouville refinery remains loss-making. We are excited to be progressing with our battery metals strategy of developing downstream exposure to Europe’s battery metal chain.”
Commenting on the Keliber financing deal Froneman said, “we are delighted with the strong support from a diverse group of financiers, including the European Investment Bank and Finnerva.
“The funding package provides cost-effective, long-term funding for the balance of the Keliber projects funding needs and significantly improves the group’s liquidity, effecting ring-fencing the existing group facilities for operational requirement.”
Froneman added the financing “confirms the viability and ESG credentials of the Keliber lithium project as well as underscoring its strategic importance to the European clean energy transition.”
The €500m loan has been secured through Sibanye-Stillwater subsidiary Keliber Technology and will cover the final capital expenditure needed to build the lithium mining, processing and refining facilities in Finland.
According to the group the loan “not only completes the full financing requirement for the Keliber lithium project but also represents a significant injection of capital for Sibanye-Stillwater, improving group financial flexibility and liquidity and ensuring that available group cash and debt facilities are ring-fenced for operational and corporate requirements.”
The loan comprises a bank-financed €250m export credit agency (ECA) guaranteed tranche; a €150m tranche provided by the European Investment Bank and a €100m syndicated commercial bank tranche.
Finnerva, the state-owned Finnish export credit agency, has provided a guarantee covering 80% of the €250m ECA tranche as part of its strategic aim to strengthen “the operating potential and competitiveness of Finnish enterprises.”
