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Sibanye-Stillwater Secures €500M Loan For Keliber Lithium Project

mining
Aug 22, 2024
Article Source LogoMining Magazine
Mining Magazine

Multinational mining company Sibanye-Stillwater will receive a €500m ($556m) green loan for its Keliber lithium project in Finland, through its subsidiary Keliber Technology Oy.

This is the final funding required for the construction and development of Sibanye-Stillwater’s lithium mining, processing, and refining facilities in Kaustinen, Kronoby and Kokkola.

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The project aims to produce electric vehicle (EV) batteries for the European market. The shareholders are Sibanye-Stillwater (79.8%) and the state-owned Finnish Minerals Group (20%), with the remainder owned by a small group of Finnish investors.

The new loan comprises €250m from the Export Credit Agency (ECA), €150m from the European Investment Bank (EIB) and a €100m syndicated commercial bank tranche.

Finnish state-owned financing company Finnvera has provided a guarantee covering 80% of the €250m ECA tranche. 

According to Sibanye-Stillwater, the €150m EIB loan marks the bank’s first financing support for mining critical raw materials in the European Union.

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The proceeds will be used to complete the development of the Keliber lithium project, with a total capital expenditure of €667m ($742m) adjusted for inflation. Approximately €250m ($278m) was previously raised through equity finance.

The loan also represents a significant injection of capital for Sibanye-Stillwater, following its recent restructuring in South Africa, where the company is headquartered.

Sibanye-Stillwater CEO Neal Froneman commented that the funding package “confirms the viability and ESG credentials of the Keliber lithium project, as well as underscoring its strategic importance to the European clean energy transition.” 

Finnish Materials Group CEO Matti Hietanen added: “We see the Keliber lithium project as an integral part of the Finnish battery value chain and the first integrated lithium project in Europe.”

The Keliber lithium project has proven and probable ore reserves amounting to around 12.7 million tonnes.

Domestic demand for lithium in Europe is increasing as the region attempts to draw level with the global leaders of Australia, Argentina, Zimbabwe and Brazil.

Finland in particular is aiming to become the pre-eminent expert for battery minerals through its National Battery Strategy 2025.

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