A DECISION on whether to invest up to $245m in Rhyolite Ridge, a lithium/boron mine in the US, moved a step closer for Sibanye-Stillwater after the Biden administration on Thursday published a key environmental report for the venture.
The US Bureau of Land Management’s (BLM’s) final environmental impact statement sets in motion a review period of at least 30 days before a record of decision – essentially a mine’s permit – can be issued, according to a report by Reuters.
The BLM also published an opinion on how a rare flower at the mine site – Tiehm’s buckwheat flower – can best be protected. Conservation groups have opposed the development of the project arguing the flower will be driven to extinction.
If built, however, Rhyolite Ridge would become one of the largest US sources of lithium which is critical to electric vehicle battery manufacture and politically important because it helps offset China’s dominance in the metal.
The shares of ioneer, an Australian company with which Sibanye-Stillwater signed an option on a 50% investment in Rhyolite Ridge, jumped more than 12% in New York trading.
Shares in Sibanye-Stillwater have been on the up lately, owing to a sudden improvement in platinum group prices. But it’s questionable whether investors will be heartened by progress at Rhyolite Ridge as Sibanye-Stillwater only recently reduced pressure on its balance sheet.
Neal Froneman, CEO of Sibanye-Stillwater said in an interview last week that the group had eight weeks once the environmental permit was granted to make a call on Rhyolite Ridge. “To make that decision we also need the outcome of a class two feasibility study which will tell us the economics. Right now we don’t have that,” he said.
“We are not hell bent on expanding our lithium portfolio if it is not significantlly value accretive. So these are decisions that are in the pipeline. Our only commitment is to make a decision, yes or no. That is the only commitment we have,” he said.
The proposed mine, roughly 362km north of Las Vegas, contains enough lithium to power roughly 370,000 EVs each year. Ford Motor and a joint venture between Toyota 7203.T and Panasonic 6752.T have agreed to buy lithium from the mine, said Reuters.
The US Geological Survey has labeled lithium a critical mineral vital for the US economy and national security. As part of a push to boost domestic production, the US Department of Energy last year said it would lend ioneer up to $700m to develop the mine, although the company would need to first obtain its permit.
The BLM said it worked with the US Fish and Wildlife Service and the company to craft “significant protections for the plant,” including changing mine design plans and propagation efforts that included construction of a greenhouse and hiring of botanists, said Reuters.
“We’re steadfast in our commitment to be responsible stewards of our public lands as we deliver the promise of a clean energy economy,” said BLM Director Tracy Stone-Manning.
The death of more than 17,000 flowers near the mine site in 2020 sparked allegations of a “premeditated” attack. ioneer denied harming the flowers. The government later blamed thirsty squirrels. “We’ve been fighting to save this endangered little wildflower for over five years and we’re not backing down,” said the CBD’s Patrick Donnelly.
