The project's been given a $336.5 million cost to build with a 3.3-year payback period once production starts.
With a life of mine of over 35 years, the operating costs are pinned at $6,200 per tonne LiOH, after by-product credits, with an average annual EBITDA with co-products of $192 million.
Zinnwald's CEO Anton du Plessis noted the project has a technically proven processing route to deliver about 12,000 tonnes per annum of battery-grade lithium hydroxide to the developing European battery storage and electric vehicle manufacturing sectors.
The company pivoted its focus to hydroxide production earlier this year from the initial plan to produce 5,000tpa of lithium fluoride. LINK
"This optimisation has greatly improved both Zinnwald's economics and sustainability credentials," du Plessis said.
Zinnwald hopes to produce lithium with zero waste. The plan is to produce by-products including 57,000tpa potassium sulfate as fertiliser, 16,000tpa precipitated calcium carbonate, 75,000tpa granite and 100,000tpa sand.
Du Plessis said the company has planned an "extremely active" schedule for the project.
"We are already working on a Bankable Feasibility Study, which we intend to deliver by the end of 2023 and will continue to evaluate processing and manufacturing options to ensure the Project achieves economic and environmental excellence," he said.
The first production is targeted for 2026.
Zinnwald's share price closed the previous session at 9p (US$0.10).
