SIBANYE-Stillwater remains optimistic about its Rhyolite Ridge lithium project in the US, even if it doesn’t qualify for benefits under the country’s revamped Inflation Reduction Act (IRA).
While the IRA aims to boost domestic mineral production, recent revisions have sparked criticism and raised concerns about budget deficits.
Despite potential exclusion from certain benefits, Sibanye-Stillwater’s CEO, Neal Froneman, is confident in the project’s viability.
He argues that the IRA should support the entire mineral supply chain, not just metal refining, to strengthen US supply chains.
Froneman emphasizes that Rhyolite Ridge can succeed independently of IRA benefits, but acknowledges that they would enhance its economics, especially in a challenging market.
However, the company must carefully consider funding options amid concerns about its balance sheet and ongoing cost reduction efforts.
With financial obligations for Rhyolite Ridge and other projects, Sibanye-Stillwater faces financial pressure, particularly with stagnant platinum group metal prices.
Despite these challenges, Froneman remains committed to strategic projects like Stillwater, although cost optimization measures are essential to ensure profitability.
