70% of Construction Contracts for Brazil's Neves Lithium Project Signed

en.Wedoany.com Reported - On September 9, Atlas Lithium announced that approximately 71% of the direct capital expenditure for its wholly-owned Neves lithium project has been secured through executed contracts and definitive agreements, with the related contract costs totaling about 16% below the budget corresponding to the project's Definitive Feasibility Study (DFS). The contracted scope covers earthworks and civil construction, mechanical and electrical installation of the DMS dense medium separation plant, the crushing system and spare parts, power infrastructure, detailed engineering design, construction management and supervision, administrative and operational buildings, and transportation of processing equipment within Brazil.

The DFS for the Neves project determined direct capital expenditure of US$57.56 million, including approximately US$12.15 million for DMS plant installation, US$9.45 million for earthworks, US$6.90 million for mining, US$6.89 million for the crushing system, US$6.25 million for civil engineering, US$3.52 million for building construction, and US$2.78 million for medium-voltage substation and automation. The project also includes approximately US$14.20 million in corporate-level expenditure. Based on the 71% contracting ratio disclosed on September 9, this round of executed contracts covers the main portion of the project's direct capital expenditure, but Atlas Lithium has not yet disclosed the specific amount of each individual contract.

The project's engineering execution parties have been largely determined. Promon Engenharia is responsible for multiple detailed engineering designs; TSX Engineering is responsible for project implementation management, cost control, scheduling and risk management; Cerne Construções is responsible for the design and construction of administrative and operational facilities under an EPC model; RETC Infraestrutura is responsible for earthworks and civil engineering; Alfa Engenharia is responsible for the mechanical and electrical installation of the DMS plant from the crushing system through to final product handling and shipping, including mechanical, electrical, instrumentation and automation systems.

The DMS processing equipment for the Neves project has been manufactured and delivered to Brazil and is ready for on-site assembly. Atlas Lithium has previously invested approximately US$30 million in the procurement and transportation of this equipment. After the project obtained its expansion permit in June, the existing permit scope is already sufficient to support implementation of the development plan determined by the DFS.

The DFS designs an ore processing capacity of approximately 1.2 million tonnes per year, producing an average of approximately 146,000 tonnes per year of spodumene concentrate at a grade of 5.5%, with an initial mine life of approximately 7 years and a mine-mouth operating cost of approximately US$489 per tonne of concentrate. The project has an after-tax net present value of approximately US$539 million, an after-tax internal rate of return of 145%, and is expected to pay back the investment in approximately 11 months after production begins.

Atlas Lithium currently plans to achieve commercial production at the Neves project in the fourth quarter of 2027. The project is located in the Lithium Valley region of Minas Gerais, Brazil, with Atlas Lítio Brasil holding the relevant mining rights; Brazil's Ministry of Mines and Energy granted the project a mining concession in May 2025.