PLS greenlights P2000 project as it aims for ~2 Mt/y of spodumene production capacity

PLS says it has approved the A$1.9 billion ($1.3 billion) P2000 Project at Pilgangoora, marking the largest investment decision in the company’s history.

The project will increase Pilgangoora’s annual spodumene concentrate production capacity to approximately 2 Mt through construction of a new processing plant, Jimmagunya, with first production expected in the September quarter of 2029.

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PLS says it has approved the A$1.9 billion ($1.3 billion) P2000 Project at Pilgangoora, marking the largest investment decision in the company’s history.

The project will increase Pilgangoora’s annual spodumene concentrate production capacity to approximately 2 Mt through construction of a new processing plant, Jimmagunya, with first production expected in the September quarter of 2029.

Building on the P680 and P1000 expansions, P2000 represents the next major phase of growth at Pilgangoora, PLS says.

The decision follows the completion of the P2000 Feasibility Study, which identified a more efficient approach to mining and processing the Pilgangoora orebody.

Building on years of operating experience and technical studies, P2000 will enable more mineralised material to be recovered as ore, reducing waste movement and improving efficiency across the operation.

The new Jimmagunya processing plant will be built alongside the existing Pilgan plant, becoming the third major processing facility at Pilgangoora.

The project comprises a 9 Mt/y dry plant, a 6.3 Mt/y wet plant, a tailings filtration facility and associated earthworks, services and infrastructure.

The project will enable approximately 67 Mt of mineralised material previously classified as waste to be economically recovered as ore, supporting higher future production rates and a larger ore reserve, PLS says.

Managing Director and CEO, Dale Henderson, said the decision marked a major milestone for PLS.

“P2000 will transform the scale and competitive position of PLS,” he said.

“It provides a pathway to circa-2 Mt per annum of production, further extending PLS’ position as one of the world’s major lithium producers.

The investment is expected to create significant long-term value for PLS and its stakeholders.

With Pilgangoora 100% owned by PLS, this materially larger production base provides shareholders with substantial exposure to the additional value created in stronger lithium price environments.

“In a cyclical market, scale matters, but cost position matters more.

P2000 delivers both with materially greater production at lower unit costs, strengthening Pilgangoora’s position on the global cost curve and creating a more resilient business through lithium market cycles.

“This next phase of growth builds on years of operating experience at Pilgangoora, our deepening knowledge of the orebody and advances in processing technology.

The P2000 configuration is the next evolution, applying this experience to recover more of the orebody, reduce waste movement and lower the mine strip ratio.” The project is expected to create more than 1,000 jobs during construction and around 500 ongoing operational roles, as well as procurement opportunities for Pilbara and Western Australian businesses.

As the project progresses, PLS says it will continue working closely with Traditional Owners, local communities, government and industry partners.

Early site preparation is underway, with construction expected to take approximately two and a half years.