AMG Advanced Metallurgical Group NV mandated HSBC and Citi to raise US$500 million in new credit facilities, comprising a seven-year US$300 million term loan B and a US$200 million revolving credit facility, after its supervisory board approved the construction of a second lithium concentrate plant at its Mibra mine in Brazil.
In early November, the company commissioned Outotec OYJ to complete detailed engineering on the second plant with a final investment decision pending.
The plant is expected to increase lithium production capacity by 90,000 tonnes per year, resulting in a combined production capacity of 180,000 t/y of lithium concentrate, as well as 600,000 pounds of tantalum concentrate.
AMG Advanced Metallurgical said Dec. 12 that construction permits are in place, and the expansion is expected to be completed by the end of 2019, with total CapEx estimated at approximately US$110 million. The company plans to expand and develop existing infrastructure as part of the investment.
The company also noted that construction of the first lithium concentrate plant at Mibra is in line with expected timing and budgets, with initial production scheduled for June 2018.
AMG Advanced Metallurgical plans to use the new credit facilities, expected to be finalized in the first quarter of 2018, to refinance an existing term loan and fund incremental CapEx.
