Ioneer’s Rhyolite Ridge Project Moves Toward Construction

Rhea-AI Summary

Ioneer's Rhyolite Ridge Project progresses towards construction with the release of the U.S. Federal Government's Draft Environmental Impact Statement. The project aims to commence operations in 2027, contributing to domestic lithium production for EV battery supply chains.

Insights

Environmental Policy Analyst

The draft Environmental Impact Statement (EIS) for Ioneer's Rhyolite Ridge Lithium-Boron Project is a significant step in the project's development, reflecting a comprehensive review of potential environmental consequences. Its issuance by the Bureau of Land Management (BLM) signals a readiness for public scrutiny and concludes years of preparatory work. The EIS's focus on relocating activities to protect Tiehm's buckwheat, an endangered species, exemplifies the evolving nature of environmental regulation where biodiversity considerations are integrated into project planning, thus mitigating risks of future legal and reputational challenges that can arise from environmental groups' opposition.

The project's sustainability measures and the absence of evaporation ponds or tailings dams point to an industry trend towards more environmentally conscious mining practices. By recycling half of all water used, the project not only aligns with contemporary water management standards but also sets a benchmark for future mining operations. The commitment to protecting local flora, coupled with the $2.5 million investment in conservation, suggests a proactive approach to environmental stewardship, potentially reducing long-term liabilities associated with environmental degradation.

Energy Sector Analyst

From an energy perspective, Ioneer's Rhyolite Ridge Project stands out with its plans for energy independence. The on-site processing facility, designed to power the entire project through excess steam generation, aligns with broader industry trends towards renewable and self-sustaining energy sources. Such operational autonomy could offer insulation against energy price volatility, leading to more predictable long-term operating costs.

Furthermore, the project's alignment with federal objectives to bolster domestic lithium production underlines its strategic importance. Lithium is a critical component in electric vehicle (EV) batteries and increased domestic supply can address supply chain vulnerabilities, reduce reliance on foreign imports and support the burgeoning EV industry. The project's anticipated production timeline suggests a potential influx of lithium and boron by 2027, which could alleviate supply constraints and contribute to stabilizing prices in the EV market.

Market Analyst

Investors should note the project's conditional loan commitment from the U.S. Department of Energy, which reflects governmental support and potentially enhances the project's financial viability. Given the long lead times in the mining sector, Ioneer's anticipated commercial production in 2027 is a key factor for market participants to consider in their long-term strategic assessments. The projected 24-36 months to production, post-final investment decision, is consistent with industry norms for projects of this scale.

However, it's important for investors to monitor the public comment period and subsequent steps in the permitting process, as they can impact the project's final approval and timeline. The market will also need to assess how Ioneer handles operational risks, such as potential cost overruns and technical challenges, which are common in the mining industry and can significantly affect profitability and stock performance.

Release of U.S. Federal Government’s Draft Environmental Impact Statement Positions Nevada Project to Commence Operations in 2027

NORTH SYDNEY, Australia--(BUSINESS WIRE)-- Ioneer Ltd (“Ioneer”) (ASX: INR, NASDAQ: IONR), moved one step closer toward construction at its Rhyolite Ridge Lithium-Boron site, following the Bureau of Land Management’s (BLM) planned issuance of the project’s draft Environmental Impact Statement (EIS), as referenced in the BLM’s statement on 12 April 2024.¹ The pending release of this draft EIS is the first to be issued from the Biden Administration as part of its efforts to accelerate domestic lithium production. It is the result of years of effective collaboration between Ioneer and federal, state and local agencies and Tribal Nations. It marks a key milestone in the environmental permitting review process for the proposed greenfield project in Esmeralda County, Nevada, set to inject a critical supply of integral transition materials into the U.S. EV battery production supply chain.

Image 1: Revised Plan Based on Stakeholder Feedback: 2020 Proposed Plan of Operations: 292.9 acres of disturbance within critical habitat before concurrent reclamation to establish functional pollinator habitat. 2.98 acres of direct impact to Tiehm’s buckwheat subpopulations. Subpopulations 4, 5, 6a, 6b, and 7 affected.(Graphic: Business Wire)

The draft document will include Ioneer’s efforts to redesign and relocate proposed project activity away from Tiehm’s buckwheat, an endangered species classified by the U.S. Fish and Wildlife Service (FWS) in December 2022. The draft EIS will also detail Ioneer’s investments as part of a formal protection plan and propagation strategy for the Nevada plant.

The draft EIS will be available for public comment beginning Friday, 19 April. Reaching this stage of the National Environmental Policy Act (NEPA) permitting process reflects federal inter-agency collaboration and agreement that the draft document is ready for public input. Following the prescribed 45-day comment period, which will include BLM-organized public meetings, the BLM will incorporate feedback into a final draft and issue a final EIS and a Record of Decision (ROD), expected in October 2024. Upon issuance of a positive ROD, construction at Rhyolite Ridge can begin following a Final Investment Decision (FID). Based on that timeline, Ioneer anticipates production to begin in 2027.

“The forthcoming release of the draft EIS represents six years of hard work to help build America’s critical minerals supply chain and reaffirms the viability of our investment in Nevada. Rhyolite Ridge will help accelerate the electric vehicle transition and secure a cleaner future for our children and grandchildren. As we move through the final steps in the federal permitting process, Ioneer will keep working to ensure this world-class project will operate efficiently and sustainably,” said James Calaway, Ioneer’s Executive Chairman.

“This news sets a clear path forward to construction and brings us one step closer to making Rhyolite Ridge a reality. Rhyolite Ridge will be a significant, reliable and sustainable source of critical minerals for the United States,” said Bernard Rowe, Ioneer’s Managing Director. “Ioneer is committed to working with the local community, Tribal Nations and state and federal agencies to help the U.S. secure a domestic supply of the critical minerals vital to the clean energy transition.”

Once operational, Ioneer’s Rhyolite Ridge Lithium-Boron Project will be a leading example of responsible and sustainable mining. In July 2022, Ioneer submitted a revised plan of operations for federal permitting review, to avoid any direct impact to Tiehm’s buckwheat. After listing and designation of critical habitat, which the company supported, Ioneer worked closely with the agencies and stakeholders to develop a third iteration to detail plans to further reduce indirect impacts to the plant and reduce activity within designated critical habitat.

At the request of the BLM and FWS to further minimise impacts to the plant and its critical habitat, Ioneer’s revised design, set to be released on Friday, additionally changed the location of the quarry and overburden storage facilities to avoid any direct impacts to nearby subpopulations of Tiehm’s buckwheat and mitigate any potential indirect impacts.

Figure 1 (Refer to Images 1-3): Summary of progressive changes to avoid direct impacts to Tiehm’s buckwheat subpopulations (solid purple areas) and minimise disturbance within the designated critical habitat (dashed purple line). Project related surface disturbance is shown in solid grey areas. The critical habitat extends 500m in all directions from the sub-populations and covers 368 hectares (910 acres).

To date, Ioneer has voluntarily invested $2.5 million in conservation efforts and committed an additional $1 million annually to ensure the plant and its surrounding habitat are protected. Ioneer will work to ensure the plant and its habitat for pollinators are protected as it works to transplant seedlings grown at its dedicated greenhouse.

Ioneer’s investments to protect Tiehm’s buckwheat represent one piece of a comprehensive sustainability strategy at the proposed site. The on-site processing facility, supported by the company’s $700 million conditional loan commitment from the U.S. Department of Energy Loan Programs Office, will generate excess steam sufficient to power the entire project – meaning the operation will not be required to be connected to the energy grid and be entirely energy independent.

Ioneer’s approach to water management also differs from other current and proposed domestic producers. Rhyolite Ridge will recycle half of all water used. The Project will not have evaporation ponds or tailings dams and large parts of the quarry will be backfilled with overburden as mining progresses and ultimately concludes.

Estimated Project Timeline

Ioneer’s estimated timing for the Rhyolite Ridge Lithium-Boron Project is as follows:

Table 1: Ioneer Milestones (estimated and subject to change)

Milestone	Targeted timing2	Comment
Anticipated ROD	October 2024	Based on the current BLM timeline.
Anticipated FID	December 2024	Based on current management estimates.
Estimated Period to First Production	24-36 months	Includes supply of long-lead items and construction. Subject to lead times and when orders are placed.
Anticipated Commercial Production	2027	Produce and process high-grade lithium and boron.

This ASX release has been authorised by Ioneer Managing Director, Bernard Rowe.

About Ioneer

Ioneer Ltd is an emerging lithium–boron producer and the 100% owner of the Rhyolite Ridge Lithium-Boron Project located in Nevada, USA. Rhyolite Ridge is the only known lithium-boron deposit in North America and one of only two known such deposits in the world. Once operational, the low-cost, world-class project is expected to power upward of 50 million electric vehicles and will instantly become a globally significant source of critical materials vital to the clean energy transition.

In September 2021, Ioneer entered into an agreement with Sibanye-Stillwater where, following the satisfaction of conditions precedent, Sibanye-Stillwater will acquire a 50% interest in the Project, with Ioneer maintaining a 50% interest and retaining the operational management responsibility for the joint venture. In January 2023, Ioneer received a conditional commitment from the U.S. Department of Energy Loan Programs Office for up to $700 million of debt financing.

Ioneer signed separate offtake agreements with Ford Motor Company and PPES (joint venture between Toyota and Panasonic) in 2022 and Korea’s EcoPro Innovation in 2021.

To learn more about Ioneer, visit www.Ioneer.com/investors.

Important notice and disclaimer

Forward-looking statements

This announcement contains certain forward-looking statements and comments about future events, including Ioneer’s expectations about the Project and the performance of its businesses. Forward looking statements can generally be identified by the use of forward-looking words such as ‘expect’, ‘anticipate’, ‘likely’, ‘intend’, ‘should’, ‘could’, ‘may’, ‘predict’, ‘plan’, ‘propose’, ‘will’, ‘believe’, ‘forecast’, ‘estimate’, ‘target’ and other similar expressions within the meaning of securities laws of applicable jurisdictions. Indications of, and guidance on, the Conditional Commitment, financing plans, future earnings or financial position or performance are also forward-looking statements.

Forward-looking statements involve inherent risks and uncertainties, both general and specific, and there is a risk that such predictions, forecasts, projections and other forward-looking statements will not be achieved. Forward-looking statements are provided as a general guide only and should not be relied on as an indication or guarantee of future performance. Forward looking statements involve known and unknown risks, uncertainty and other factors which can cause Ioneer’s actual results to differ materially from the plans, objectives, expectations, estimates, and intentions expressed in such forward-looking statements and many of these factors are outside the control of Ioneer. Such risks include, among others, uncertainties related to the finalisation, execution, and funding of the DOE financing, including our ability to successfully negotiate definitive agreements and to satisfy any funding conditions, as well as other uncertainties and risk factors set out in filings made from time to time with the U.S. Securities and Exchange Commission and the Australian Securities Exchange. As such, undue reliance should not be placed on any forward-looking statement. Past performance is not necessarily a guide to future performance and no representation or warranty is made by any person as to the likelihood of achievement or reasonableness of any forward-looking statements, forecast financial information or other forecast. Nothing contained in this announcement, nor any information made available to you is, or shall be relied upon as, a promise, representation, warranty or guarantee as to the past, present or the future performance of Ioneer.

Except as required by law or the ASX Listing Rules, Ioneer assumes no obligation to provide any additional or updated information or to update any forward-looking statements, whether as a result of new information, future events or results, or otherwise.

________________________

1 “BLM takes next step on proposed Rhyolite Ridge Lithium-Boron Mine in Nevada,” 12 April 2024. https://www.blm.gov/press-release/blm-takes-next-step-proposed-rhyolite-ridge-lithium-boron-mine-nevada

2 Note: all dates are estimates only and are subject to change.

 

View source version on businesswire.com: https://www.businesswire.com/news/home/20240414358303/en/

Chad Yeftich

Ioneer USA Corporation

Investor Relations (USA)

E: ir@Ioneer.com

Daniel Francis

FGS Global

Media Relations (USA)

E: daniel.francis@fgsglobal.com

Source: Ioneer Ltd

FAQ

When will construction at Rhyolite Ridge begin?

Construction at Rhyolite Ridge is expected to begin following a Final Investment Decision (FID) upon the issuance of a positive Record of Decision (ROD), with production anticipated to start in 2027.

What is the significance of the draft Environmental Impact Statement (EIS) for Ioneer's project?

The draft EIS marks a key milestone in the environmental permitting review process, reflecting federal inter-agency collaboration and agreement that the project is ready for public input.

How has Ioneer redesigned its project activities to protect Tiehm's buckwheat?

Ioneer has redesigned and relocated proposed project activities away from Tiehm's buckwheat, an endangered species, and detailed investments in a formal protection plan and propagation strategy for the Nevada plant.

What is Ioneer's approach to water management at Rhyolite Ridge?

Rhyolite Ridge will recycle half of all water used, avoiding evaporation ponds or tailings dams. The project aims to be entirely energy independent, generating excess steam to power the operation.

What milestones are targeted for Ioneer's Rhyolite Ridge Lithium-Boron Project?

Anticipated milestones include the issuance of a Record of Decision (ROD) in October 2024, a Final Investment Decision (FID) in December 2024, and estimated commercial production in 2027.