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Major step forward for Rhyolite Ridge

Metal Tech News - September 20, 2024

With final FEIS from BLM, Nevada lithium mine is 30 days away from completion of federal permitting process.

With the U.S. Bureau of Land Management's issuance of a final environmental impact statement (EIS) for the Rhyolite Ridge mine project about 150 miles southeast of Reno, Nevada, Ioneer Ltd. takes another large step toward its goal of producing enough lithium for nearly 370,000 electric vehicles per year by 2028.

As the namesake ingredient in the batteries powering EVs and storing renewable energy, lithium is an essential element of the energy transition. Rhyolite is slated to produce enough battery-grade lithium hydroxide for nearly 10 million EVs, along with significant quantities of boric acid needed for key climate technologies, over the initial 26 years of mining detailed in a 2020 feasibility study.

"Today's issuance not only advances the Rhyolite Ridge project but brings the United States closer to a more secure and sustainable source of domestic critical minerals," said Ioneer Managing Director Bernard Rowe.

The publication of the final EIS triggers a mandatory 30-day public review period before BLM can issue a record of decision, which finalizes the federal permitting process under the National Environmental Policy Act (NEPA).

With the closing of the public review period slated to end on Oct. 21, Ioneer sees a clear path to producing the first lithium and boron at Rhyolite Ridge by 2028.

"We look forward to the conclusion of the 30-day statutory waiting period and timely issuance of the Record of Decision to advance Rhyolite Ridge into construction," said Ioneer Chairman James Calaway. "We are eager to get to work in contributing to the domestic supply of critical materials essential for the transition to a clean energy future."

Striking a balance

The mining operation proposed in the final EIS for Rhyolite Ridge strikes a balance between protecting the local environment and providing a domestic source of lithium critical to the nation's climate goals. This balance includes revising the mining plans to avoid critical habitat for Tiehm's buckwheat, a desert flower declared endangered by the U.S. Fish and Wildlife Service (USFWS) in 2023.

Mike Higdon / Flanz Media

Ioneer has invested more than $2.5 million into Tiehm's buckwheat conservation efforts, which includes a greenhouse dedicated to growing this endangered desert plant.

To minimize direct and indirect impacts on Tiehm's buckwheat, Ioneer relocated certain aspects of its proposed mining operation, such as where it would quarry rock for infrastructure and store dirt that must be removed to reach the lithium-rich ore.

Knowing that Tiehm's buckwheat would likely be listed as endangered and supporting that decision, Ioneer submitted its critical habitat avoidance plan to BLM in 2022.

"Since Ioneer's work at Rhyolite Ridge began in 2016, we have listened to members of the community and adapted our plans to maximize the project's many economic benefits while minimizing indirect impacts to the community and environment," said Rowe.

USFWS accepted the plan to avoid critical Tiehm's buckwheat habitat, which allowed the federal permitting process for Rhyolite Ridge to move forward.

"The Rhyolite Ridge project represents what we can do when we work together – with industry, states, Tribes and stakeholders – to ensure the swift consideration and adaptation of projects to fulfill our energy needs while respecting cultural and ecologically sensitive areas," Laura Daniel-Davis, acting deputy Secretary of the Interior, said upon the BLM announcement of the final EIS.

"Rhyolite Ridge is stronger because of the extensive collaboration and input from all involved stakeholders," Rowe added.

Next Rhyolite Ridge milestones

With the final federal permits for Rhyolite Ridge expected in 30 days, Ioneer has its sights set on the next major milestone – a final investment decision that will greenlight construction of both the mine and a processing plant, which will produce high-grade lithium and boron products.

"We look forward to the conclusion of the 30-day statutory waiting period and timely issuance of the Record of Decision to advance Rhyolite Ridge into construction," said Calway.

Ioneer Ltd.

The Rhyolite Ridge processing plant will produce enough battery-grade lithium for 370,000 EVs per year.

The investment hinges on finalizing commitments by the U.S. Department of Energy and Sibanye-Stillwater Ltd., a mining company best known for its platinum group metals mines in Montana and South Africa.

Early last year, DOE offered to provide Ioneer with a loan of up to $700 million to help finance development of the mine that is currently being permitted for Rhyolite Ridge.

"Rhyolite Ridge is a major step towards bolstering domestic lithium production for clean energy technologies, and LPO is excited to further develop an environmentally responsible U.S. supply chain for critical materials," Jigar Shah, director of DOE's Loans Program Office, said at the time.

The $700 million from the federal government is contingent on the financial participation of Sibanye-Stillwater. In 2021, the platinum group metals-focused mining company agreed to invest $490 million into Rhyolite Ridge to earn a 50% joint venture interest in the lithium project.

Sibanye-Stillwater's recent scaling back of its platinum-palladium mines in Montana, which included laying off around 700 employees, raises questions about whether the company will expand into the lithium mining business.

During a Sept. 12 presentation to investors and analysts, Sibanye-Stillwater CEO Neal Froneman said the company's decision to invest in Rhyolite Ridge is contingent on BLM's issuance of a record of decision and the results of an updated feasibility study for the project.

In its annual report published on Sept. 17, Ioneer says it expects to have the updated feasibility study completed in conjunction with the BLM record of decision in October.

With these final regulatory and economic analysis pieces in place, the company anticipates reaching a final investment decision for Rhyolite Ridge by the end of the year in order to begin producing high-grade lithium and boron at the mine and processing facility by 2028.

"We are eager to get to work in contributing to the domestic supply of critical materials essential for the transition to a clean energy future," Calaway said.

Author Bio

Shane Lasley, Metal Tech News

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With more than 16 years of covering mining, Shane is renowned for his insights and and in-depth analysis of mining, mineral exploration and technology metals.

 

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