Shaakichiuwaanaan’s 2027 FID Hinges on Market and Regulatory Approvals

Project Overview and Feasibility Study Highlights

PMET Resources has delivered a pivotal lithium-only Feasibility Study (FS) for its Shaakichiuwaanaan Project, located in Quebec's Eeyou Istchee James Bay region. The study confirms the technical feasibility and economic viability of developing a large-scale spodumene pegmatite operation, underpinning the upcoming Environmental and Social Impact Assessment (ESIA) submissions and the final mine authorisation process.

The FS defines a robust scope for a mining and processing operation with a nameplate capacity of up to 5.1 million tonnes per annum (Mtpa) of ore, producing approximately 800,000 tonnes per annum (tpa) of SC5.5 spodumene concentrate over an estimated 20-year mine life. This positions PMET Resources as a potential top-four global spodumene concentrate producer.

Mineral Reserves and Production Profile

The study establishes a maiden Mineral Reserve of 84.3 million tonnes at 1.26% lithium oxide (Li2O), equating to 2.62 million tonnes of lithium carbonate equivalent (LCE). Mining will employ a hybrid approach combining low strip ratio open pit and higher-grade underground mining, with a processing flow sheet based on Dense Media Separation (DMS) only, simplifying operations by avoiding flotation and chemical reagents.

Production is planned to ramp up to a steady-state output of around 800,000 tpa of spodumene concentrate, with the open pit operation commencing first, followed by underground mining. The project’s scale and longevity offer a strong platform to supply lithium raw materials to North American, European, and Asian battery supply chains.

Economic Metrics and Cost Competitiveness

PMET Resources projects a competitive total cash operating cost of approximately US$544 per tonne and an all-in sustaining cost (AISC) of about US$597 per tonne of spodumene concentrate, consistent with prior preliminary economic assessments. At a long-term spodumene price assumption of US$1,221 per tonne (SC5.5 basis), the project delivers an after-tax net present value (NPV) discounted at 8% of roughly US$1.19 billion and an internal rate of return (IRR) of 18.1%, with a payback period under five years.

The FS accounts for a total development capital expenditure of approximately CAD 1.98 billion (~US$1.48 billion), net of anticipated pre-production credits and tax incentives, including the Canadian Clean Technology Manufacturing Investment Tax Credit and Quebec’s Tax Credit Relating to Resources.

Strategic Partnerships and Government Support

The project benefits from strong strategic backing, including a binding offtake term sheet with PowerCo, a Volkswagen subsidiary, for 100,000 tonnes per year over ten years. Volkswagen’s prior investment at a significant premium underscores confidence in the project’s fundamentals and its alignment with global battery and electric vehicle ambitions.

PMET is also engaging with government stakeholders to leverage financial incentives and tax credits designed to accelerate critical mineral projects. The company’s location in Quebec offers access to hydroelectric power and established infrastructure, enhancing the project’s sustainability and cost profile.

Next Steps and Upside Potential

With the FS complete, PMET Resources is preparing to submit its ESIA documentation to federal and provincial regulators, a critical step toward final mine authorisation. The company plans to advance detailed engineering and pursue optimization initiatives, including potential co-product recovery of tantalum and caesium, which could enhance project economics and diversify revenue streams.

A Final Investment Decision (FID) is targeted for the second half of 2027, contingent on detailed engineering outcomes, market conditions, and commercial agreements. PMET is also considering an underground bulk sampling program to further de-risk project execution and validate product quality.

Overall, the Shaakichiuwaanaan Project stands out as a large-scale, long-life lithium development with strong economic fundamentals, strategic partnerships, and government support, poised to become a cornerstone supplier in the evolving global battery materials supply chain.