Precious metals mining company Sibanye-Stillwater has secured a €500m green loan financing facility for its Keliber lithium hydroxide project located in Finland.
Executed through its subsidiary Keliber Technology, the credit facility includes a bank financed €250m export credit agency (ECA) guaranteed tranche, a €150m tranche provided by the European Investment Bank (EIB) and a €100m syndicated commercial bank tranche.
It is the final capital expenditure funding for the construction and development of the project’s lithium mining, processing and refining facilities in Kaustinen, Kronoby and Kokkola, respectively.
Sibanye-Stillwater said that the green loan will help it to complete the full financing requirement for the Finnish lithium project. It also provides a substantial boost to the company’s financial flexibility and liquidity.
Sibanye-Stillwater CEO Neal Froneman said: “We are delighted with the strong support from a diverse group of financiers, including the European Investment Bank and Finnvera.
“The funding package provides cost-effective, long-term funding for the balance of the Keliber project’s funding needs and significantly improves the group liquidity, effectively ring-fencing the existing group facilities for operational requirements confirms the viability and ESG credentials of the Keliber lithium project, as well as underscoring its strategic importance to the European clean energy transition.”
Located in Central Ostrobothnia, in western Finland on the Gulf of Bothnia, the Keliber comprises five mining areas, the Päiväneva concentrator, the lithium hydroxide refinery at the Kokkola Industrial Park, and auxiliary facilities at all sites.
The five proposed mining sites are namely, Syväjärvi, Rapasaari, Emmes, Outovesi and Länttä.
The total capital expenditure entailed for the Keliber lithium project is approximately €656m. It is partially funded by a previously raised equity financing component of about €250m.
Construction of the Keliber lithium refinery began in March 2023. The production ramp-up at the Keliber lithium project is scheduled for the second half of 2025.
Last month, Sibanye-Stillwater concluded consultations regarding the restructuring of its gold operations and regional services functions in South Africa. The move impacted more than 2,000 workers.
