Sibanye-Stillwater, a prominent South African multi-metals mining group, announced yesterday its decision to terminate a key supply agreement at its Sandouville nickel refinery in France as part of a strategic shift to repurpose the facility. The refinery, previously focused on nickel sulphate production, will now be geared towards producing precursor cathode active material (pCAM) for the burgeoning European battery market. The termination of the supply deal is expected to be finalized by December 31, 2024.
The decision comes with significant financial implications, as Sibanye-Stillwater anticipates incurring costs of $37 million due to the termination. Despite this, the company plans to continue refining from inventory and maintaining sales through the first quarter of 2025.
The Sandouville refinery, acquired from Eramet in 2022, is undergoing a transformation driven by the GalliCam project, which focuses on shifting from nickel sulphate to pCAM production. This pivot is based on positive results from a scoping study, though a final decision will hinge on the outcomes of an ongoing feasibility study. Central to this transformation is the planned use of mixed hydroxide precipitate (MHP) in a chloride medium, replacing the current use of nickel matte. Sibanye-Stillwater has emphasized that this new process will streamline production, reduce energy consumption, lower carbon emissions, and generate fewer waste products. The company filed a patent application for the chloride-MHP process in July.
A small-scale pCAM precipitation pilot is currently underway at the Sandouville site, with testing set to begin by the end of the third quarter of this year. This initiative marks a significant step in Sibanye-Stillwater’s strategy to position itself as a key player in the European battery supply chain.
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