South African diversified miner Sibanye-Stillwater has announced a significant upward revision in the projected cost of its flagship Keliber lithium project in Finland.
The company now estimates the total capital expenditure at €783 million ($1.36 billion), a 17 per cent increase from the previous estimate of €667 million ($1.16 billion).
This adjustment, disclosed in Sibanye-Stillwater’s first quarter 2025 report, is attributed to regulatory changes, an expanded project scope, and a recent decline in lithium prices.
Despite the cost escalation, the Keliber project remains a cornerstone of Europe’s critical minerals strategy.
Recognised as a strategic project by the European Commission under the Critical Raw Materials Act, Keliber is poised to play a vital role in securing the continent’s lithium supply.
Progress on the ground continues apace.
The main equipment installation at the Kokkola lithium refinery was completed during the first quarter of 2025, with office and laboratory buildings also approved for use.
Pre-commissioning activities began in Q1, and cold commissioning is scheduled to commence in the second quarter.
The pivotal “hot commissioning” of the refinery, marking the completion of the construction and development phase, is targeted for the first half of 2026.
Upon completion of this phase, Sibanye-Stillwater expects its capital commitments to drop below R15 billion ($1.28 billion), which is projected to enhance annual cash flow.
As of the end of Q1 2025, the total aggregated project capital expenditure stood at €508 million ($882.39 million).
The second phase of the Keliber project, encompassing the Päiväneva concentrator and the Syväjärvi open-pit mine, is also advancing.
All key permits have been secured, though some conditions remain under review by the permitting authority.
The Rapasaari-Päiväneva environmental permit became legally valid in April 2024, but several conditions were returned for further examination, with the application for these under review submitted in the first quarter.
To mitigate the risk of potential delays in the Rapasaari permit, Sibanye-Stillwater has updated its production schedule to ensure that the Syväjärvi mine will supply all feedstock to the concentrator for the initial five years of operation.
The hearing process for the Päiväneva concentrator was completed in the first quarter of 2025, and a permit decision is anticipated in the second quarter.
While the permit allows for construction, production will only commence once an enforceable permit decision is in place.
In a related development, Sibanye-Stillwater entered into a chrome management agreement with Glencore’s Merafe Venture in South Africa in February, further diversifying its portfolio.
With hot commissioning of the Keliber refinery on track for the first half of 2026, Sibanye-Stillwater is positioning itself at the forefront of Europe’s battery materials supply chain, despite the challenges of rising costs and regulatory complexity.
