Precious metals miner Sibanye-Stillwater (JSE: SSW; NYSE: SBSW) approved on Monday a ?,?588 million ($821.6 million) investment to advance its Keliber lithium project in Finland.
The South African miner said its board-approved capital expenditure program would start with construction of a lithium hydroxide refinery within Finland's Kokkola Industrial Park, located about 480 km north of Helsinki. The area serves as a logistics hub from where the company plans to feed into the European battery sector.
With the operation, Sibanye-Stillwater aims to be the first fully-integrated lithium producer in Europe, targeting first production in 2024 and ramping up to produce around 15,000 tonnes of lithium hydroxide per year.
The miner owns about 85% of Finnish battery chemical maker Keliber, which in turn owns the namesake lithium project.
"We are delighted to advance and grow our presence in the European battery metals industry through Keliber," chief executive Neal Froneman said in the statement.
He noted the mine, which will mainly supply the European market, is forecast to have the lowest carbon emissions footprint in the industry.
Sibanye plans to underwrite a ?,?104 million ($145 million) capital increase by Keliber by the end of January while at least ?,?250 million ($349 million) will be borrowed to fund construction of the project.
Construction of the P??iv??neva concentrator and the initial two open pit mines - Syv??j??rvi and the flagship Rapasaari - will commence once all the environmental permits are received.
The Syv??j??rvi mine is fully permitted, while the environmental permits for the Rapasaari mine and the P??iv??neva concentrator are currently outstanding, Sibanye said.
The company last year acquired other lithium and nickel assets in the United States and Europe. With prices for those and other battery metals ballooning over the past year, mergers and acquisitions in the sector are less appealing at the moment, Froneman has said.
The proposed Keliber lithium mine consists of several advanced stage lithium spodumene deposits, with 9.3 million tonnes of ore reserves.
Once in operation, output is expected to reach 15,000 tonnes of battery grade lithium hydroxide a year during its mine-life.