Australian lithium miner Pilbara Minerals achieved a significant milestone on Friday, marking the completion of a major expansion at its Pilgangoora operation with the first ore processed at the P1000 project.
The P1000 project involved a comprehensive upgrade to the Pilgan plant’s concentrator and supporting infrastructure, resulting in a substantial increase in the Pilgangoora operation’s total production capacity. The expansion is expected to enhance economies of scale and reduce operating costs in the future.
Dale Henderson, Managing Director and CEO of Pilbara Minerals, stated, “This significant increase in production capacity underscores the scale and quality of the operation and aligns with our strategy to create flexibility and scale in response to market demand.
Lowering operating costs and positioning ourselves at the lower end of the cost curve remains key to thriving through market cycles.”
The A$560-million capital investment in the P1000 project was completed ahead of schedule and within budget. Henderson added, “The successful delivery of this project highlights our team’s capability to execute on time and on budget, further strengthening Pilbara Minerals’ track record of successful project delivery.”
The project also had a positive impact on the local economy, with 560 workers on-site during peak construction and the creation of around 50 permanent operational roles.
“Our exceptional team and contracting partners showed great teamwork in completing the project. Over one million hours were worked to finish P1000 with no lost-time injuries, ensuring all our people went home safely,” said Henderson.
Commissioning is now underway, with the achievement of first ore marking a major milestone. The ramp-up to full capacity is expected to be completed in the September quarter of 2025.
The Pilbara Minerals board approved the P1000 project in March 2023, with construction commencing in September 2023.