Sibanye-Stillwater has decided to halt its involvement in the Rhyolite Ridge Lithium-Boron Project, electing not to proceed under its joint venture agreement with ioneer Ltd.
This pivotal move was communicated to stakeholders on Wednesday confirming the board’s commitment to carefully evaluate potential investments amidst a dynamic market landscape.
The Rhyolite Ridge Project, which was initially announced to be part of a joint venture back in September 2021, aimed to capitalise on the growing demand for lithium and boron as critical components for battery manufacturing.
However, despite commitments made during the agreement’s inception, the situation has evolved considerably over the past two years. More recently, the venture faced multiple amendments as it awaited the fulfilment of various conditions precedents, including a crucial final investment decision from the Sibanye-Stillwater Board.
In October 2024, the company received an updated technical report summary from ioneer, encapsulating new project and technical data.
Sibanye-Stillwater’s management undertook a thorough review, engaging external specialists to evaluate the viability of the project.
After a comprehensive due diligence process, the Board ultimately discovered that Rhyolite Ridge did not meet the company’s stringent investment hurdle rates, especially when assessed under prudent pricing assumptions. Thus, the decision to withdraw came as a strategic yet necessary move for the company.
Despite this setback, Sibanye-Stillwater remains unwavering in its commitment to the US market and its overarching battery metals strategy. The company has signalled that it will continue to explore and assess growth opportunities within the expanding battery metals space, which is becoming increasingly significant amid the global push towards renewable energy solutions.
The withdrawal from the Rhyolite Ridge Project underscores the complexities and financial rigour involved in the mining sector, particularly as demand for battery materials continues to surge.
Stakeholders will be keenly observing the next steps of Sibanye-Stillwater as it re-evaluates its approach to potential partnerships and investments in the rapidly evolving landscape of energy transition materials.
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