Lithium junior Sayona Mining [ASX:SYA] said it’s advancing the restart of production at its North American Lithium (NAL) operation in Quebec.
SYA awarded a C$200 million contract to a local construction firm for mining operations.
Sayona described the contract as ‘one of the largest agreements in the history of Québec mining sector.’
Work is set to start next month, with SYA eyeing the restart of production in Q1 FY23.
SYA shares are up 60% year to date.
Source: tradingview.com
NAL’s new mining operator
On Tuesday, Sayona shared the news of a significant advancement at NAL.
The four‐year mining operations contract, worth around C$200 million, has been granted to the Québec company L. Fournier & Fils (Fournier).
It will be up to Fournier to supervise all stripping and drilling, as well as blasting, loading and transporting of materials for the operation.
The newly signed operator will also be expected to maintain mining roads and cater for all outstanding services related to the NAL operation.
However, it will be the responsibility of another local company, Dynamitage Castonguay, to see through the actual drilling and blasting works at the site.
Operations will require a fleet of more than 10 trucks with 100 tonne-capacity and two 125-tonne excavators.
Sayona explains the agreement with Fournier will provide economic benefits to the region of Abitibi‐Témiscamingue, including 120 new jobs — most of which will be available to Pikogan and Lac Simon locals.
Sayona’s Québec CEO, Guy Laliberté, commented:
‘We are very happy to have found a partner of the calibre of Fournier & Fils for our mining operations at the North American Lithium site in La Corne.
‘We are thrilled that this commercial agreement is not only a winwin solution for both parties, but that it also allows us to work with a local company. This partnership with Fournier therefore helps fulfil our promise to ensure that the success of our projects deliver genuine benefits to the local community.’
Fournier President and CEO, Jérémi Fournier, also provided a statement:
‘It is with great pride that Fournier & Fils positions itself as a partner of choice for major mining projects in Eastern Canada.
‘We thank Sayona for the trust shown in our team, and more particularly for allowing us to occupy a leading position in the battery sector in Québec.
‘It is a partnership that will benefit an entire industry.’
SYA’s lithium focus
Sayona is evidently wasting no time in getting its NAL operations underway, intent on capitalising on strong market conditions for lithium.
SYA reported permitting, procurement is now complete, and construction is ramping up.
Sayona’s Managing Director, Brett Lynch commented:
‘We are delighted to further advance NAL towards the recommencement of production in the first quarter of 2023, with the selection of a skilled and experienced mining operator being a crucial step in this process.
‘With both demand and pricing for lithium currently at alltime highs, we are well placed at NAL to become the first supplier of spodumene in North America, paving the way to becoming the region’s leading supplier of lithium carbonate/hydroxide.’
There’s no escaping EV competition
With lithium prices rising, there’s plenty of competition out there to source it.
Back in 2021, lithium stocks were dominating the ASX — eight out of 10 best-performing stocks on the All Ords were lithium stocks.
But many of last year’s hot stocks are well down on their all-time highs in 2022.
So, has the lithium ship sailed?
Not quite. Yes, the easy money has been made, but opportunities still exist.
Money Morning has recently published a research report on three overlooked ASX lithium stocks. Access it for free here.
Regards,
Kiryll Prakapenka,
For Money Morning
