Contract Power Group has won a contract to build, own and operate a power station at Pilbara Minerals’ Pilgangoora lithium project for at least seven years, while former Fortescue Metals Group delivery manager Dale Henderson has taken over as Pilbara’s project director.
Under the recently finalised agreement, Kewdale-based Contract Power will have flexibility to use dual gas or diesel generation for the first two years of the contract, and will be also able to introduce solar hybrid applications.
It comes days after contractor Maca was awarded the contract to undertake open pit mining at the site, beginning in November.
Mr Henderson has taken the reins of Pilgangoora as former project manager Jason Cross moves to take responsibility of the stage two expansion of the mine, which would lift production from 2 million tonnes per annum to around 5mtpa.
His brief will be to refresh an existing feasibility study for expansion to 4mtpa.
Pilbara managing director Ken Brinsden said the company’s development schedule, which he described as aggressive, was on track, with production to get under way early next year.
“Our entire team is focused on ensuring delivery of the Stage 1 Pilgangoora Project, with site works now well advanced,” Mr Brinsden said.
“As activities ramp-up, we are delighted to have secured an executive of Dale Henderson’s calibre and project development and operations experience, which will be invaluable in the delivery and operations at Pilgangoora.
“Importantly, his commencement also allows us to allocate additional resources to the 5mtpa expansion program, which would see mine production capacity grow to approximately 100,000tpa of lithium carbonate equivalent.
“Investors should not lose sight of the incredible scale we can achieve at Pilgangoora and, in light of the current and projected demand for lithium, Pilgangoora is ideally placed to meet this near-term and future demand for raw materials for the burgeoning lithium-ion global supply chain.”
NRW Holdings is well advanced in delivering site civil earthworks, the company reported, while 60 of the Pilgangoora camp’s accommodation rooms have been commissioned.
Shares in Pilbara were 11.5 per cent higher at 48.5 cents each at the close of trading today.
