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Key Points
- The miner withdrew from the Rhyolite Ridge venture with ioneer Ltd., citing investment return concerns after a detailed financial review.
- Despite the exit, Sibanye reaffirms its commitment to expanding in the U.S. critical minerals sector, seeking new investment opportunities.
- With Sibanye out, ioneer looks for alternative funding to advance one of North America's key lithium-boron deposits amid rising EV demand.
Sibanye-Stillwater, led by South African executive Neal Froneman, has officially pulled out of the $980 million Rhyolite Ridge Lithium-Boron Project in Nevada. The decision, announced in a regulatory filing , comes after the mining giant concluded that the venture with Australia’s ioneer Ltd. did not meet its investment return targets.
The withdrawal follows a lengthy review process that began in September 2021, when Sibanye-Stillwater first signed the agreement to establish a joint venture with ioneer. The deal was subject to several conditions, including final approval from Sibanye’s board.
Sibanye walks away from Lithium, keeps U.S. expansion in sight
In October 2024, ioneer submitted an updated technical report with new supporting data. Sibanye, working with external specialists, conducted due diligence before ultimately deciding that the project did not align with its financial benchmarks. The board’s assessment, based on conservative pricing assumptions, led to the decision to walk away.
Despite stepping back from Rhyolite Ridge, Sibanye reaffirmed its commitment to the U.S. battery metals sector and said it remains on the lookout for other opportunities in the region. The move signals a shift in strategy for the company, which has been aggressively expanding in the critical minerals space to support the energy transition.
What’s next for Rhyolite Ridge?
With Sibanye’s exit, ioneer will now explore other options to move the project forward. Rhyolite Ridge remains one of the few lithium-boron deposits in North America, making it a valuable asset as demand for electric vehicles and energy storage surges globally.
Sibanye’s decision underscores the increasing scrutiny mining companies apply to capital-heavy projects, especially in a market where commodity prices remain volatile. While lithium demand remains strong, companies are becoming more selective, prioritizing projects that offer sustainable long-term returns.
Expanding Sibanye’s global reach
Sibanye continues to strengthen its footprint beyond South Africa, particularly in the Americas, where it is investing in gold and base metal projects to reinforce its global position. CEO Neal Froneman, who owns a 0.12 percent stake in the company (3,284,428 shares), is steering the miner toward a stronger presence in battery metals while keeping a close eye on costs.
The company is also focused on improving efficiency at its Sandouville nickel refinery in Europe while optimizing costs in its U.S. platinum group metals (PGM) operations. With its next move in the U.S. market under scrutiny, investors and industry watchers will be paying close attention.
