South African mining group Sibanye-Stillwater has secured €500 million ($557.3m) in debt financing to complete its Keliber lithium project in Finland, Kallanish reports.

The green financing package includes a €150m tranche provided by the European Investment Bank (EIB) and a €100m syndicated commercial bank tranche. Finnvera, the Finnish state-owned export credit agency, has guaranteed 80% of a €250 million tranche, the miner said Thursday. 

The proceeds ensure the final capital expenditure funding needed for the construction and development of the company’s lithium mining, processing and refining facilities in Kaustinen, Kronoby and Kokkola, Finland respectively. Alongside completing the full financing requirement for the Keliber lithium project, it represents a “significant injection” of capital for Sibanye-Stillwater, the company says.

Sibanye will now complete the development of the Keliber Lithium project, which has a capital expenditure of around €656m in 2023 terms. The company earlier raised €250m through equity to finance the project. 

“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,” says Sibanye-Stillwater ceo, Neal Froneman.

The executive adds the funding highlights the “strategic importance” of the Keliber project to the “European clean energy transition.” 

The Keliber lithium project is expected to produce 15,000 tonnes/year of battery-grade lithium hydroxide, with the first production from third-party ore expected next year. Production from own ore is anticipated in 2026. Finnish Minerals Group owns a 20% stake in Keliber.

“We see the Keliber lithium project as an integral part of the Finnish battery value chain and at the same time as the first integrated lithium project in Europe,” comments Matti Hietanen, ceo of Finnish Minerals Group. “The financing solution … enables the construction phase to be completed and the production of battery-grade lithium hydroxide to begin.”

Sibanye this week said it has terminated a “key commercial supply contract” for its loss-making Sandouville nickel refinery in France to prepare it for precursor cathode active material (pCAM) production.