Lycopodium Secures A$22 Million Engineering Contract for Pilgangoora Expansion
Lycopodium has landed a A$22 million detailed engineering contract for Pilgangoora’s proposed P2000 Expansion Project, advancing the lithium operation’s capacity growth plans in Western Australia.
- A$22 million contract awarded for detailed engineering services
- Project supports Pilgangoora’s P2000 Expansion to 2 million tonnes per annum
- Contract follows completion of Front-End Engineering Design for Wet Plant
- Work starts immediately, pending PLS Group’s final investment decision
- Pilgangoora is among the world’s largest hard rock lithium operations
Engineering Contract Advances Pilgangoora Expansion
Lycopodium Limited (ASX:LYL) has secured a significant engineering services contract valued at approximately A$22 million from Pilgangoora Operations Pty Ltd, a subsidiary of PLS Group Limited. The contract covers the detailed engineering design of the Wet Plant component for the P2000 Expansion Project at the Pilgangoora lithium operation in Western Australia’s Pilbara region.
This award follows Lycopodium’s recent delivery of the Front-End Engineering Design (FEED) for the Wet Plant, marking a critical step as PLS moves towards a final investment decision (FID) on the project. Work on the detailed engineering services is already underway.
Expansion Targets Doubling Lithium Output
The P2000 Expansion Project aims to boost Pilgangoora’s production capacity to around 2 million tonnes per annum of lithium spodumene concentrate. The plan involves constructing a new processing plant and crushing circuit east of the existing Pilgan plant, complementing the current Pilgan and Ngungaju facilities. Pilgangoora stands as one of the world’s largest hard rock lithium operations, supplying a vital input to the global energy transition.
Lycopodium’s Managing Director and CEO, Peter De Leo, highlighted the company’s longstanding involvement with Pilgangoora, including previous expansions and the Mid-Stream Demonstration Plant Project. De Leo emphasised the strategic importance of continuing to support a world-class lithium operation amid growing demand for critical minerals.
Lycopodium’s Growing Project Portfolio
This latest contract adds to Lycopodium’s expanding project pipeline, which includes sizeable engineering and construction management contracts across multiple continents. The company recently secured a A$196 million EPCM contract for the Doropo Gold Project in Côte d’Ivoire and a A$118 million contract for Ethiopia’s Tulu Kapi Gold Mine, underscoring its growing footprint in the resources sector.
The Pilgangoora contract reinforces Lycopodium’s position in the lithium processing space, a sector experiencing heightened activity as global demand for battery minerals accelerates.
Bottom Line?
Lycopodium’s new contract cements its role in a major lithium expansion, but the project’s ultimate scale hinges on PLS’s pending investment decision.
Questions in the middle?
- Will PLS Group approve the P2000 Expansion Project as planned?
- How will Lycopodium’s order book evolve if the expansion proceeds?
- What impact will rising lithium demand have on engineering service providers?
