Sibanye-Stillwater remains optimistic about its Rhyolite Ridge lithium project in the US despite potential setbacks in qualifying for benefits under the redrafted Inflation Reduction Act (IRA).
The IRA, aimed at promoting domestic critical mineral production, has faced criticism for its budgetary implications and political opposition.
However, Sibanye-Stillwater’s CEO Neal Froneman believes that the project will proceed regardless of its eligibility for tax credits and subsidies.
While the latest draft of the IRA excludes certain aspects of the mineral supply chain, Froneman argues that this contradicts the Act’s purpose of securing critical metals domestically.
He emphasizes the importance of incorporating basic costs, such as rock-breaking, to encourage the development of refineries within the US.
Despite the challenges, Froneman expresses confidence in the project’s viability and economic potential. Sibanye-Stillwater plans to invest $490 million for a 50% stake in Rhyolite Ridge, pending permit approvals, with project founder Ioneer holding the remaining balance.
As the company faces scrutiny over its balance sheet and potential funding needs, Froneman underscores the importance of sound economics and financing strategies, especially amidst market uncertainties and cost reduction efforts.
With additional financial obligations looming, including project funding for Keliber in Finland, Sibanye-Stillwater remains focused on navigating challenges and advancing its strategic initiatives.
