Name of the Project
Cinovec lithium project.

Location
In the Krusne Hory mountains, which straddle the border between Czechia and the state of Saxony, in Germany.

Project Owner/s
The project is a joint venture (JV) between European Metals Holdings and power distribution company CEZ.

Project Description
Cinovec is the biggest hard-rock lithium deposit in Europe and the fourth-biggest nonbrine deposit in the world.

The project aims to produce about 29 386 t/y of battery-grade lithium oxide over life-of-mine (LoM).

The mine be accessed by a twin decline system.

The planned mining method is longhole stoping with backfill using paste backfill. The project ore extraction rate is estimated at 54.5-million tonnes, allowing for a processing rate of 2.25-million tonnes over a 25-year LoM.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a net present value, at an 8% discount rate, of $1.94-billion and an internal rate of return of 36.3%, with a payback of 2.5 years.

Capital Expenditure
The project is estimated at $643.8-million.

Planned Start/End Date
The project is expected to take two years to complete.

Latest Developments
The project has been classified as strategic, which means that it has priority for grant funding from the Just Transition Fund (JTF).

The JTF supports European Union regions relying on fossil fuels and high-emission industries in their green transition.

The JTF allocated €1.64-billion to Czechia, of which the Usti region has been allocated about €632-million. 

The first call for grant applications under the JTF opened on November 14, 2022, and closes on December 31, 2023.

The grant may be applied for by the 11 designated strategic projects in the Usti region.

The amount in the first call is about €350-million. The Cinovec project has been allocated the maximum possible JTF grant, subject to passing the application process,  funds available and obtaining the necessary permits for the early-stage Cinovec work programmes, particularly the full development of the twin decline entry/egress system for the mine.

EMH is confident that Cinovec will receive a significant portion of the funds applied for from the JTF for the project.

The maximum funding to be made available upon application for every strategic project in the Usti region is about €49-million.

Key Contracts, Suppliers and Consultants
Widenbar and Associates (resource estimation); Bara Consulting (mine design and scheduling); Ausenco (front-end comminution and beneficiation); and Hath Associates (lithium carbonate and hydroxide plants).

Contact Details for Project Information
European Metals Holdings, tel + 61 8 6245 2050.