Sayona Mining Limited has cemented plans to commence North American spodumene (lithium) production in 2023 following the formal agreement of the North American Lithium (NAL) restart program. The Sayona Quebec Inc. (SYQ) board has formally authorised the restart of spodumene concentrate production at the NAL operation in Québec, requiring significant plant and infrastructure upgrades, aimed at improving product quality, recovery, and plant availability. SYQ is owned 75% by Sayona Mining and 25% by Piedmont. The proposed upgrade and restart budget is approximately CAD 98 million (approx AUD 110 million). Sayona has made significant steps to expedite the production restart, having recruited key personnel, secured critical long lead equipment items, progressed detailed engineering design work and obtained nearly all required regulatory approvals. The NAL concentrator commissioning is on track, with first production due in First Quarter 2023. The NAL restart project has been funded through cash contributions by both Sayona and Piedmont, each company having successfully completed significant capital raises in the first half of 2022. Following the restart of NAL operations, the offtake agreement with Piedmont entitles it to purchase the greater of 113,000 metric tons per year of spodumene concentrate, or 50% of production from NAL.
Prior to the NAL restart, the agreement provided for offtake of 60,000 tonnes or 50% of concentrate produced from ore mined at SYQ's nearby Authier Lithium Project. This offtake agreement will remain in place until the commencement of operation of a lithium conversion plant in Québec. At this point, spodumene concentrate produced from NAL will be preferentially delivered to that chemical plant upon the start of production. Any remaining concentrate not required by the conversion plant will be delivered to Piedmont. As per the Company's agreement with the Québec Government, Sayona is committed to the development of a downstream processing capability in Québec, comprising lithium carbonate and/or lithium hydroxide production.