Europe's largest lithium project could be up and running mid-2022 -EMH

22nd July 2019

By: Reuters

  

Font size: - +

LONDON – European Metals Holdings could begin operations at its Cinovec lithium project in the Czech Republic by mid-2022, and is holding preliminary discussions with potential customers, it said on Monday.

Czech utility CEZ, in which the state holds a 70% share, last week said it had conditionally agreed to provide two-million euros ($2.2-million) through a convertible loan to EMH which paves the way for it to become one of EMH's largest shareholders.

European Metals, listed in London and Australia, controls the exploration licences to the Cinovec lithium/tin project in the Czech Republic, which it describes as Europe's largest lithium deposit.

It could help CEZ shift to renewable energy and supply Europe's electric car industry.

"It's very big, it's low-cost, it's surrounded by carmakers and battery makers and it's in the EU, where there is a very strong political push to develop the battery industry," Keith Coughlan, MD at European Metals, said in an interview.

The company's shares have risen nearly 50% this year.

Coughlan said the site also offers tin but at current tin prices, it's not economic, just a useful byproduct.

The CEZ loan is only a small part of the total capital expenditure of $480-million, but Coughlan said it was a commitment that inspired confidence while CEZ carries out due diligence on the project.

CEZ can convert the principal to shares at any point before the loan's expiry at the end of the year. Czech Prime Minister Andrej Babis has supported the deal if analysis shows mining the project would be promising.

European Metals is working on a definitive feasibility study and says it could begin project construction, which is expected to take two years, in mid-2020.

The CEZ loan would make it easier to talk to other financiers, Coughlan said, adding he had held preliminary discussions with buyers, including carmakers and battery producers. All are European, although some are units of companies with headquarters beyond Europe, he said.

The European Union, keen to shorten its supply chains, is focusing on strategic minerals and developing supplies for its electric vehicle industry.

Edited by Reuters

Comments

The content you are trying to access is only available to subscribers.

If you are already a subscriber, you can Login Here.

If you are not a subscriber, you can subscribe now, by selecting one of the below options.

For more information or assistance, please contact us at subscriptions@creamermedia.co.za.

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?

MAGAZINE & ONLINE

SUBSCRIBE

RESEARCH CHANNEL AFRICA

SUBSCRIBE

CORPORATE PACKAGES

CLICK FOR A QUOTATION