ioneer on course for first Rhyolite Ridge production in mid-2023 as it moves closer to environmental approval

ioneer Ltd (ASX:INR) (OTCMKTS:GSCCF) (FRA:4G1) is targeting first production in mid-2023 from the Rhyolite Ridge Lithium-Boron project in the US as it moves closer to gaining environmental approval.  The company has been able to confidently continue detailed engineering activities with the intention of being construction-ready in the second quarter of 2021. Complete permitting process The US Federal Government agency responsible for endangered species has issued a formal letter rejecting the petition of the Center for Biological Diversity to emergency-list Tiehm’s buckwheat, which is found on the project site. ioneer’s executive chairman James D Calaway said: “We are pleased by this decision and look forward to continuing our ongoing work with the federal agencies to responsibly complete the permitting process that will allow the project’s environmental approval, while at the same time continuing ioneer’s commitment to protect and conserve this rare plant. “The ruling is an important part of Rhyolite Ridge’s path to 2021 development.” Multiple environmental baseline studies ioneer’s plans have been carefully designed to deliver an environmentally sensitive and economically feasible project that ensures the least possible impact to local flora and fauna. “We have worked for more than two years to complete multiple environmental baseline studies, which comprise the basis of our plan of operation – a major undertaking this past year,” Calaway added. This work has been extensively reviewed and accepted by the Bureau of Land Management (BLM) allowing the Environmental Impact Study (EIS) approval process to continue. Most advanced lithium project in US Rhyolite Ridge is extremely well-positioned as the only definitive feasibility study (DFS) level project and the most advanced lithium project in the US. Further, Rhyolite Ridge’s unique mineralogy enables the company to generate two important revenue streams, with the co-production of boron solidifying the project’s position at the very bottom of the global lithium cost curve, while benefitting ioneer with critically important revenue stability. “We anticipate that the industry will continue to face headwinds in the short-term and are, therefore, controlling what we can during this time," Calaway said. Strong tailwind for lithium producers “We remain laser-focused on securing funding and permitting, while preparing for the mid-term to ensure that we are ideally placed to capitalise on demand recovery and likely supply shortages, as governments across the globe increasingly promulgate incentive schemes to rapidly reduce reliance on fossil fuels and lower greenhouse gas emissions," he said. The company believes there will be a surge in electric vehicle uptake globally, as new EVs come on stream with a wider price point in the mid-term, coupled with expanding governmental policies encouraging consumers and pressuring OEMs that fail to adjust. ioneer believes these likely developments will shift the industry and usher in a strong tailwind for lithium producers, particularly those independent from conversion in China and that are durable and environmentally sound, low-cost suppliers. Funding strategy The company is continuing discussions with a range of strategic industrial and financial parties and a number of parties are undertaking due diligence in its DFS data-room. Once the strategic partnering process is completed, ioneer will work to secure the remaining capital requirements to support a final investment decision with the support of Goldman Sachs, which is assisting and advising the company in completing the funding solution. Bipartisan support for critical minerals Calaway also noted the bipartisan support for the development of critical minerals in the US. “We are confident that regardless of the final outcome of the US Presidential election that there is momentum towards electrification. “While the Trump Administration has been vocal about supporting development of US-based critical mineral supply, the Biden campaign is centred around rapidly electrifying the transportation and power sectors to confront climate change.” He said it was evident either a Trump or Biden Administration would usher in more rapid growth in demand for US-made materials and that ioneer’s project would be able to deliver materials for that demand surge.