South African diversified miner Sibanye-Stillwater has reported a 17% increase in the projected cost of its Keliber lithium project in Finland, now estimated at €783m ($880m), up from the previous €667m.
The revision is attributed to regulatory changes, an expanded project scope and a decline in lithium prices, the company stated in its first quarter 2025 (Q1 2025) report.
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The Keliber lithium project has been recognised by the European Commission as a strategic project under the Critical Raw Materials Act, underscoring its importance to Europe.
Since its approval in 2022, the capital investment has risen, but it is expected to decrease in 2026, post-completion of the project’s construction and development phase.
The main equipment installation at the lithium refinery in Kokkola was completed during Q1, and the office and laboratory buildings were approved for use. The hot commissioning of the refinery is slated for the first half of 2026 (H1 2026).
This completion is expected to lower the company’s capital commitments to below R15bn ($823.1m), enhancing the annual cash flow.
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By GlobalDataAs of the end of Q1 2025, the total aggregated project capital expenditure stood at €508m.
Pre-commissioning activities began in Q1 2025, with cold commissioning set to start in Q2.
The second phase of the Keliber lithium project, including the Päiväneva concentrator and Syväjärvi open0pit mine, is also progressing.
All key permits for the project have been received. However, some permit conditions are still under review by the permitting authority.
The Rapasaari-Päiväneva environmental permit became legally valid in April 2024, although certain conditions were sent back for further review. The application for permit conditions under review was submitted in Q1.
To mitigate the risk of potential delays in the Rapasaari permit, the Syväjärvi mine is set to supply all feedstock to the concentrator for the first five years, according to an updated production schedule.
The hearing process for the Päiväneva concentrator was completed in Q1 2025, with a permit decision expected in Q2.
The permit allows for the construction of the concentrator, but production commencement is contingent upon an enforceable permit decision.
In February this year, Sibanye-Stillwater entered into a chrome management agreement with Glencore’s Merafe Venture in South Africa.
