Pilbara Minerals acquires Latin Resources

Pilbara Minerals, now known as PLS (ASX: PLS), has completed its acquisition of Latin Resources and its flagship Salinas project in Brazil.

The acquisition is consistent with PLS’ strategy to grow and diversify revenues beyond Pilgangoora. According to PLS, the Salinas project has the potential to become a leading hard rock lithium operation by production globally, with development flexibility to supply new markets.

With the acquisition complete, the Salinas project will be renamed the Colina project.

PLS managing director and chief executive Dale Henderson comments on the acquisition.

“On behalf of the PLS board of directors and the leadership team, we would like to welcome Latin Resources team members and security holders joining PLS,” he said.

“We are excited by the opportunities ahead at our Colina project in Brazil.

“The PLS team is looking forward to working with our new colleagues in Brazil to advance project studies and resume drilling activities, which will support the future development of the Colina project.

“We also thank the State of Minas Gerais and the local Salinas community for their continued support for the Colina project.

“One of the attractions of Latin Resources was the strong foundation of community support that has been established.

“We look forward to continuing this collaboration with the community and all key stakeholders in Brazil.

“The completion of this acquisition marks a significant milestone for PLS, providing us with our second 100% owned, high quality, hard rock lithium asset.

“This asset is expected to be low-cost and accretive for our shareholders, offering us the flexibility to sequence new supply and diversify into emerging growth markets for lithium, such as Europe and North America.”

Now that the acquisition is complete, the group will conduct a review to evaluate opportunities to further optimise the Colina project. PLS’ team will work closely with its new in-country Brazilian team to complete the review.

In parallel with Colina project development studies, PLS plans to undertake an exploration program with the objective of expanding the resource base, testing new prospects and infilling the existing mineral resource.

Following completion of development studies, exploration program and permitting for the Colina project, PLS will consider a final investment decision taking into account prevailing lithium market conditions and customer requirements at the time, consistent with previous expansion projects.

P1000 achieves first ore

A major expansion project at PLS’ Pilgangoora lithium operation in the Pilbara recently achieved first ore.

The P1000 expansion project comprised of a major upgrade to the Pilgan plant’s concentrator and supporting infrastructure resulting in a substantial increase in the Pilgangoora operation’s total production capacity.

This expansion is expected to capture economies of scale and reduce future operating costs at the Pilgangoora operation.

Mr Henderson emphasised the strategic importance of the expansion in unlocking the full potential of the Pilgangoora asset.

“Delivering a substantial increase in production capacity reinforces the exceptional scale and quality of the operation and aligns with our strategy to create optionality and the ability to scale-up in line with market demand,” he said.

“Continuing to drive down our operating costs to keep us at the lower end of the cost curve and increase our ability to thrive through market cycles is also a key part of our strategy.”

The $560m capital expenditure investment in the P1000 project was completed ahead of schedule and within budget.

The P1000 project also delivered a boost to the local economy with 560 workers on site during peak construction and ~50 permanent operational roles created.

“Our great people and contracting partners demonstrated exceptional teamwork to complete this project,” Mr Henderson said.

“More than 1 million hours were worked to complete P1000 with no lost time injuries which is essential to ensuring all our people go home safe and well at the end of the day.”

Commissioning is now underway with first ore achieved considered a major milestone and ramp-up to full capacity expected to be achieved in the September Quarter 2025.