[vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – europeanenergymetals.com” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Feuropeanenergymetals.com%2Fnews%2Fnews-2023%2Feuropean-energy-metals-commences-finnish-pegmatite-project-phase-i-explorationjuly-13-2023-05-02-02.html|target:_blank”][distance desktop_type=”30″][vc_column_text]Phase I will consist of mapping and sampling of the documented pegmatite occurrences throughout the Finnish Pegmatite Project. Prospecting for new occurrences will also form part of the program. Resourceful Geoscience Solutions Inc., a Canadian consulting firm with in-country experience, will undertake the program, with assistance from Finnish company GeoPool OY.
“We are very pleased to commence 2023 exploration, with Phase I focussed on evaluating Finnish Pegmatite Project to highlight high priority areas for subsequent permitting for Phase II drilling,” stated European Energy Metals CEO Jeremy Poirier. “European Energy’s objective remains H1 2024 drilling as we continue to work toward developing the Finland Pegmatite Project portfolio into one of Europe’s major sources of lithium and REE’s, critical metals to the green future,” he continued.
The exploration crews plan to work north to south commencing with the Nabbia concession, through Lappajarvi East and West, to Katalia and finally wrapping up at the Kovelo concession. Samples will be sent to the ALS Minerals geochemical prep lab in Sodankylä, Finland. The samples will be analyzed with procedure ME-MS89L, utilizing a sodium peroxide fusion and ALS’s Super Trace ICP-MS methodology.
Pursuant to an earn-in agreement with Capella Minerals Ltd., European Energy has the right to earn an 80% interest in the Finnish Pegmatite Project by issuing 1,750,000 shares, paying Cdn$500,000 and incurring Cdn$2,500,000 dollars in exploration expenditures staged over a 4 year earn in period. A detailed assessment of the historic and government exploration data compiled by the Finnish Geological Survey (“GTK“) identified a series of permissive tracts for LCT pegmatites. The concessions comprising the Finnish Pegmatite Project were identified as a result of this pegmatite research.
About the Finland Pegmatite Project
The Finland Pegmatite Project consists of four exploration concessions in central Finland and one exploration concession in southern Finland. These reservations cover a total area of 2,300 square kilometres and are focused on Lithium-Cesium-Tantalum or LCT pegmatite complexes located within the Jarvi-Pohjanmaa and Seinajoki lithium-permissive tracts as defined by the Geological Survey of Finland (GTK). Four of the reservations (Nabba, Lappajarvi West, Lappajarvi East and Kaatiala) lie immediately adjacent to, and to the south of, Keliber Oy’s spodumene mine development project in the Kaustinen district.
Keliber Oy is a consortium, comprised of Sibanye-Stillwater (79%), Finnish Minerals Group (20%) and Finnish shareholders (1%). A Definitive Feasibility Study by Hatch dated June 14, 2018 states a JORC Code 2012 compliant Measured and Indicated Mineral Resource of 9.47 million tonnes at a grade of 1.16% Li2O.1
European Energy cautions investors the presence of lithium mineralization at Keliber Oy is not necessarily indicative of similar mineralization at the Nabba concession.
R. Tim Henneberry, P.Geo. (BC), a Director of European Energy Metals Corp., is the Qualified Person who has reviewed and approved the technical content disclosed in this release.
About European Energy Metals Corp.
European Energy Metals Corp. is a junior mining company currently focussed on the Lithium-Cesium-Tantalum Finnish Pegmatite Project in central Finland. Governing bodies in Europe and Finland are legislating environmentally friendly and energy independent laws and policies. One of the key components is access to REE and, specifically, lithium. The Company is also focusing on its Champ Copper Project located in Southeast British Columbia.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]
[vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – europeanenergymetals.com” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Feuropeanenergymetals.com%2Fnews%2Fnews-2023%2Feuropean-energy-metals-files-finnish-lithium-cesium-tantalum-pegmatite-project-technical-reportjuly-6-2023-04-02-02.html|target:_blank”][distance desktop_type=”30″][vc_column_text]Vancouver, British Columbia–(Newsfile Corp. – July 6, 2023) – European Energy Metals Corp. (TSXV: FIN) (FSE: W28) (“European Energy Metals” or the “Company“) is pleased to announce the receipt and subsequent SEDAR filing of an independent technical report entitled “Finland Pegmatite Project Central Ostrobothnia, Western Finland” by Warren D. Robb, P.Geo. (BC) with an effective date of May 30, 2023 (the “Technical Report“). European Energy Metals has the option to earn up to an 80% interest in the Finland Pegmatite Project (“FPP“) from Capella Minerals Ltd. (TSXV: CMIL) as detailed in the Company’s 2023-March-06 and 2023-March-20 news releases. The report can be found on SEDAR or the company’s website: europeanenergymetals.com,
The FPP consists of five mineral reservations prospective for lithium-cesium-tantulum and cover an area of 2300 square kilometers. The report focused on the four northern reservations Nabba, Lappajarvi W, Lappajarvi E, and Kaatiala, located 350 kilometers north of Helsinki and road accessible from the city of Kokkola.
“The Technical Report supports the Company’s decision to acquire the Finland Pegmatite Project and provides a good technical base for our geological crews as they design our 2023 Phase I exploration program,” stated European Energy Metals CEO Jeremy Poirier. “We believe our Finland Pegmatite Project portfolio has the potential to become a significant source of lithium and REE’s for Europe’s domestic critical metals industry,” he continued.
The Geological Survey of Finland (“GTK“) has been conducting regional studies since the 1960’s, including: till geochemistry, airborne magnetics and radiometrics, and rock sampling. They combined their data with industry data from Kebiler Oy and other companies to complete a study for a predictive model for LCT pegmatites in Finland, identifying several “permissive tracts” with potential to host LCT pegmatite deposits. The Finnish Pegmatite Project lies within two of the tracts: the 255 km² Kaustinen tract, host to the Kebiler Oy LCT lithium project, and the 3,672 km² Järvi-Pohjanmaa tract.
GTK identified anomalous areas in the Kaustinen tract and followed up with detailed geochemical till sampling between 2003 and 2023, sampling at 100 metre intervals along lines spaced approximately 1000 metres apart, with the lines oriented perpendicular to the ice flow direction at 240o. An anomaly was identified on the Nabba concession.
Figure 1. Hilo Finland Lithium Project Exploration Reservations
GTK identifed and described pegmatite mineralization in boulder trains and in outcrop on the three southern reservations Lappajarvi W, Lappajarvi W, and Kaatiala, but did not analyze the rocks for lithium.
Figure 2. Permissive Tracts for Lithium
(3 is Järvi-Pohjanmaa tract; 5 is Kaustinen tract) Source: Quantitative assessment of undiscovered resources in lithium-caesium-tantalum pegmatite hosted deposits in Finland by R.Kalevi, E.Pasi, A.Timo, H.Tapio, K.Niilo, K.Janne, L.Panu and T.Tuomo dated 2018. Geological Survey of Finalnd Bulletin 406.
The four exploration reservations* all lie within the Pohjanmaa belt of rocks and are underlain by mica schists and mica gneisses, which are intercalated with metavolcanic rocks. The Pohjanmaa belt, which includes the Kaustinen and Järvi-Pohjanmaa tracts, hosts several rare element pegmatites in the north proximal to the Nabba reservation. Li pegmatites of the Kaustinen province belong to the albite spodumene type according to the classification of Černý & Ercit (2005). The Li pegmatites have intruded after the metamorphic peak conditions of the area and crosscut the metavolcanic and metasedimentary rocks at the northern edge of the belt.
*Mineral Reservations in Finland are valid for two years and grant the holder the right to evaluate the reservation’s geology to identify and subsequently secure areas within the reservation deemed worthy of further exploration. The holder can then apply for an Exploration permit over the smaller worthy areas to explore further.
The Technical Report recommends the Company design a ground follow up exploration program consisting of prospecting, geological mapping combined with rock sampling and infill till geochemical sampling to identify target areas with the exploration reservations for follow up exploration permit applications. The cost of the recommended exploration program is budgeted at $500,000.
The data disclosed in this news release is related to historical base of till sampling results. European Energy has not undertaken any independent investigation of the sampling, nor has it independently analyzed the results of the historical exploration work in order to verify the results. European Energy considers these historical base of till results relevant as the Company is using this data as a guide to plan exploration programs.
R. Tim Henneberry, P.Geo. (BC), a Director of European Energy Metals Corp., is the Qualified Person who has reviewed and approved the techgnical content disclosed in this release.
About the Finland Pegmatite Project
The Finland Pegmatite Project consists of four exploration concessions in central Finland and one exploration concession in southern Finland. These reservations cover a total area of 2,300 square kilometres and are focused on Lithium-Cesium-Tantalum or LCT pegmatite complexes located within the Jarvi-Pohjanmaa and Seinajoki lithium-permissive tracts as defined by the Geological Survey of Finland (GTK). Four of the reservations (Nabba, Lappajarvi W, Lappajarvi E and Kaatiala) lie immediately adjacent to, and to the south of, Keliber Oy’s spodumene mine development project in the Kaustinen district.
Keliber Oy is a consortium, comprised of Sibanye-Stillwater (79%), Finnish Minerals Group (20%) and Finnish shareholders (1%). A Definitve Feasibility Study by Hatch dated June 14, 2018 states a JORC Code 2012 compliant Measured and Indicated Mineral Resource of 9.47 million tonnes at a grade of 1.16% Li2O.1
European Energy Metals cautions investors the presence of lithium mineralization at Keliber Oy is not necessarily indicative of similar mineralzation at the Nabba concession.
Under the terms of an Earn In Agreement with Capella Minerals Limited, European Energy may earn an 80% interest in the Finland Pegmatite Project by issuing 1,750,000 shares, paying Cdn$500,000.00 and incurring Cdn$2,500,000.00 dollars in exploration expenditures staged over a 4 year earn in period.
About European Energy Metals Corp.
European Energy Metals. is a junior mining company currently focussed on the Lithium-Cesium-Tantalum Finnish Pegmatite Project in central Finland. Governing bodies in Europe and Finland are legislating environmentally friendly and energy independent laws and policies. One of the key components is access to REE and specifically Lithium. The company is also focusing on its Champ Copper project located in Southeast British Columbia.
Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
Cautionary Statements Regarding Forward-Looking Information
This news release contains forward-looking information within the meaning of applicable securities legislation. Forward-looking information is typically identified by words such as: believe, expect, anticipate, intend, estimate, postulate and similar expressions, or are those, which, by their nature, refer to future events. Such statements include, without limitation, statements regarding the future results of operations, performance and achievements of the Company, including the future planned exploration programs for, and the exploration potential of, the Finland Pegmatite Project. Although the Company believes that such statements are reasonable, it can give no assurances that such expectations will prove to be correct. All such forward-looking information is based on certain assumptions and analyses made by the Company in light of their experience and perception of historical trends, current conditions and expected future developments, as well as other factors management believes are appropriate in the circumstances. This information, however, is subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking information. Important factors that could cause actual results to differ from this forward-looking information include the costs of any anticipated work programs and the ability to fund such costs, required approvals in connection with any work programs and the ability to obtain such approvals, risks inherent in exploration as well as those described under the heading “Risks and Uncertainties” in the Company’s most recently filed MD&A. The Company does not intend, and expressly disclaims any obligation to, update or revise the forward-looking information contained in this news release, except as required by law. Readers are cautioned not to place undue reliance on forward-looking information.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]
[vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – theiet.org” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Feandt.theiet.org%2Fcontent%2Farticles%2F2023%2F07%2Flithium-and-the-dream-of-cornwall-s-mining-revival%2F|target:_blank”][distance desktop_type=”30″][vc_column_text]Cornwall rests on a trove of one of the world’s most desirable metals: lithium. There are hopes that its mining economy could be reborn as part of a nationwide green industrial revolution. That dream might just become a reality – but nothing can be taken for granted.
Lithium, the lightest metal element, is a vital resource for the energy transition. It is used in batteries for EVs and grid-scale energy storage – a single Tesla Model S battery contains 12kg of lithium.
Cornwall happens to be sitting on a massive lithium deposit, prompting former Prime Minister Boris Johnson to describe it as the “Klondike of lithium”. Would-be miners – most notably the companies British Lithium and Cornish Lithium, both based in the county – have descended on the Cornish landscape, poring over old geological maps to search for buried treasure. At present, there is no full-scale operation or any certainty of a full-scale operation. However, pilot projects have yielded encouraging results, and the companies hope that by 2030 they could be extracting thousands of tonnes of lithium every year.
There is sincere hope that this will come to fruition. Cornwall’s mining heritage reaches back to the Bronze Age. Its landscape is so sculpted by abandoned mines that the Cornwall and West Devon Mining Landscape was recognised as a Unesco World Heritage Site in 2006. However, the decline of its mining industries through the 20th century has left it the second poorest area in Northern Europe, in no small part dependent on tourism and, until recently, EU funding. The dream is that the Cornish mining industry might be revived – this time, without harming its people and environment – and become an important part of that green industrial revolution the UK has been promised.
The energy transition is driving demand for lithium to unprecedented heights. According to US-based alliance Li-Bridge, demand for lithium-ion batteries in the US alone is set to grow sixfold by 2030. “I think the world has realised that lithium is obviously an essential element, and demand is going to go up massively,” says Jeremy Wrathall, CEO of Cornish Lithium. “We’re talking about five million tonnes of [annual] demand by 2035.”
At present, lithium production is dominated by a few countries. Australia is the leader (approaching 100,000 tonnes of annual production), followed by Chile, China, Argentina, Zimbabwe and Portugal. Not unusually for energy transition metal mining, lithium mining often comes at great environmental and human cost. Geothermal lithium extraction as performed in South America, for instance, involves laying out lithium-rich brine in colossal evaporation pools beneath the Atacama sun. In Chile’s lithium-rich Salar de Atacama salt flat, mining activities consume almost two-thirds of the area’s water, contributing to devastating water shortages. There is an increasing feeling that lithium mining must be carried out more responsibly if the world is to reap its benefits fully. This could be an opportunity for the UK to distinguish itself. It would have a long way to go to catch up with the big lithium producers in terms of volume, but it may be able to mine the world’s most sustainable lithium.
Of course, there are other reasons why the UK government might be interested in domestic lithium production. The US and its allies are scrambling to establish supply chains for technologies of strategic importance – from solar panels to semiconductors – that circumvent China, which is the world leader in both raw critical minerals and lithium-ion battery production. Domestic lithium mining, along with domestic battery manufacturing, would be strongly in the UK’s geopolitical interests. Then-minister Nadhim Zahawi said in 2020: “The potential to become self-sufficient in lithium, which Cornish mining represents, will, I think, be incredibly important to the British economy.”
Cornish mining: on the rebound?
There are two potential avenues for lithium production: hard-rock mining and direct extraction from brines. The more traditional approach is hard-rock mining. This involves digging rocks, crushing and grinding them to separate the lithium micas (a group of pinkish minerals rich in the element), then subjecting them to various processes to extract the lithium.
Both British Lithium and Cornish Lithium are experimenting with hard-rock mining around St Austell. The former is using its own patented technology for the extraction stage, and the latter is using technology from Australia-based Lepidico. Both companies seem confident. Notably, British Lithium has identified a suitable lithium resource in a former china clay mine which could support annual production of 20,000 tonnes of lithium – enough to meet a third of national demand around the end of the decade.
Whether lithium extracted via hard-rock mining can be considered sustainable hinges mainly on the question of energy. All of that crushing and grinding is incredibly energy-intensive. British Lithium acknowledged in a 2021 interview that if it and Cornish Lithium ran operations concurrently, they would overload the grid. Hopefully, nothing of the sort will come to pass. Both companies are interested in establishing private power networks supplied by local renewable resources like solar and offshore wind (Imerys, which carries out related operations in Cornwall, already has its own private network).
In 1864, a brine ‘rich in Lithia’ was discovered in a mine near Redruth. Cornwall sits on a 280-million-year-old granite sheet, through which water has trickled, absorbing and dissolving lithium in its path. This leaves lithium-rich springs beneath the Cornish landscape. With hard-rock mining, Wrathall says, the rock must be cracked to get the lithium solution out, but, with these brines “nature has already done it for you”.
Extracting lithium from brine is a more experimental approach. Cornish Lithium, which is attempting it, prefers not to call it ‘mining’ at all. The company aims to take brine up to ground level, directly extract the lithium (concentrating the brine via reverse osmosis, followed by an extraction step), then put it back in the ground. This could be a remarkably undisruptive way to produce lithium. In terms of infrastructure, it would require little more than a shed-sized plant and two boreholes: one to collect the brine and one to return it. In 2020, the company confirmed it had found ‘globally significant’ levels of lithium in waters under Cornwall. It recently drilled its third borehole and hopes to have small-scale production (up to 300-500 tonnes a year) running by 2025.
Cornish brines are much less lithium rich than South American brines (220-260mg/L vs 2,000mg/L), but have certain advantages that bode well for sustainability. Elsewhere in the world, these brines surface at very high temperatures and need to be kept under high temperature and pressure to prevent the dissolved solids from crystallising. Cornish brines surface at just 80°C, making them easier and more energy-efficient to process. While not hot enough for geothermal power generation, they are hot enough for district heating networks. Cornish Lithium is already supplying some heat to local clotted cream company Rodda’s and is discussing the possibility of providing heat for greenhouses.
Professor Karen Hudson-Edwards of Camborne School of Mines, an expert in sustainable mining, acknowledges that further work could be needed to ensure this process is truly sustainable – such as understanding the impacts of changing the chemical composition of these brines – but concludes: “In terms of overall impact I think geothermal lithium mining is as sustainable as we can get. It’s not going to create a lot of waste, the footprint is small, and Cornish Lithium are very committed to sustainability, so that’s a big plus as well.
“Mining has a bad reputation with many people, for [good] reasons. Really, it has not been a great performer in the past but I think the companies are waking up to the fact that people are demanding – well, insisting on – sustainability and good practice or they won’t fund the mining companies if they don’t do that. Things are changing quickly.”
Thanks to its natural resources and the sincerity of the companies involved, there is plenty of potential for sustainable lithium mining in Cornwall. Some hope that this – along with renewables and perhaps even a battery factory (St Austell and Newquay MP Steve Double has pressed the government on the possibility) – could place Cornwall at the forefront of a green industrial revolution that is good for the economy, communities in deindustrialised areas, and the environment.
“I absolutely, categorically do think [lithium extraction] could be part of a green revolution in Cornwall,” Wrathall says. Among other benefits, he emphasises that lithium production could offer a great incentive for ambitious young people to stay in their home county.
This is a critical consideration. There is a strong feeling that Cornwall must benefit from this mining revival, rather than having its labour and resources exploited by others (this is complicated by big questions about land ownership, still dominated in the county by hereditary landowners like the Duchy of Cornwall). An important part of ensuring that Cornwall benefits from lithium mining is investing in skills and infrastructure to support the industry. “The metal might be in the ground; you might be able to extract it technologically and economically, but we’ve got skills gaps at the moment. [Local] people haven’t had the opportunity to study and get to a stage where they would be able to easily or naturally go into these jobs,” says Dr Eva Marquis, also of Camborne School of Mines.
“Then you’ve got a social tension if you can’t get people in the county with the right skillset and you want to get these mines up and running in the next five to 10 years. If you don’t invest in the talent pipeline now, you’re […] going to have to bring people in, and that will probably skew the social divide even more. There would be some benefit to having more people down here but we’re already in a housing crisis, so there are lots of underlying challenges.”
The amount of work required to make the most of Cornwall’s lithium deposits should not be underestimated. It will be a complex, costly endeavour and inherently risky – will markets be willing to pay a large enough green premium to make it economically feasible? The recent collapse of lithium-ion battery start-up Britishvolt, before it was bought out of administration by an Australian firm, should remind us to take nothing for granted.
Experts agree that the challenge is bigger than the main two companies involved, and call for a clear, coordinated strategy to support this green industry and others. Wrathall says: “It doesn’t help that our government hasn’t got an industrial strategy. If we’re to retain the car industry in the UK, that would be helpful. The odds are against us at the moment, but I think Cornwall has got the potential to restore its legacy of innovation and technological leadership.”
SETTLEMENTS
What’s next for mining towns?
Former mining settlements can, with serious cash and co-ordinated action, become home to sustainable new industries. Australia’s Latrobe Valley has been moving away from coal mining to renewable energy and emerging industries like hydrogen production in a transition supported with funding from the Victoria state government for infrastructure, job training programmes and partnerships between industry, government and community groups.
In having the potential to revive its mining heritage, Cornwall is particularly lucky. A recent Nature Communications paper estimates that just 7 per cent of rural towns in coal-mining systems have the potential to mine energy transition metals like lithium, as these resources are not usually co-located.
“These towns may be best positioned to prosper through rapid workforce re-deployment from a coal economy to an energy transition metals economy, although they would face significant challenges in adapting,” says the University of Göttingen’s Dr Kamila Svobodova, an author of the paper.
“Favourable geography alone may not be enough to revive deindustrialised areas. Other factors, such as infrastructure and local knowledge and expertise, also play a crucial role in the success of these projects. For example, the development of local supply chains and the availability of skilled labour can help create a sustainable green economy in a region. A key challenge for successful industrial transition is boosting the ability of a region and its industries to break out of locked-in paths of development by pursuing innovation, new technological pathways and industrial renewal. This must be place-based and time-specific. Ensuring this transition is done in a socially acceptable and just way is fundamental to growth and well-being in the region.”[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]
Michael Schmidt, Senior Analyst at the German Mineral Resources Agency, spoke to Innovation News Network about the steps that Europe must take to ensure that the demand for lithium is met.
Demand for lithium in European battery applications is expected to increase by over 300% between 2023 and 2030. This rise is mainly driven by the demand for lithium-ion batteries in electric vehicles (EVs).
Lithium-ion batteries are the dominant battery technology in the EV industry due to their safety, durability, and long-life cycle. Lithium cannot be substituted from the battery, meaning that in the near future, demand for the critical mineral will not decrease.
As a result of this, Europe is expected to have the second-largest share of global lithium demand for the foreseeable future.
This raises the question as to how the region will ensure that this demand is met.
The landscape for rising lithium demand in Europe
Currently, Europe accounts for under 1% of the global lithium supply, making the region highly import dependent.
Despite this, demand projections estimate that the EU will need around 400,000 tonnes of lithium carbonate equivalent.
To ensure that this demand is met, analysts have argued that the EU must get every lithium project up and running. At the moment, the region has 28 lithium mine projects under development – 19 in EU Member States and four in the UK.
These projects are forecast to begin operations in the late 2020s and are set to be producing nearly 70kt lithium carbonate equivalent by 2030.
Policy to implement domestic production
The importance of securing a domestic supply of lithium was underscored in the Critical Raw Materials Act, announced in March 2023.
The Act aims to provide a framework to strengthen its domestic critical mineral supply chains, targeting for the EU to meet 10% of its mined demand for critical minerals – including lithium.
However, there is still a long way to go to ensure that these goals are met.
To find out more about Europe’s rising lithium demand, Innovation News Network spoke to Michael Schmidt, Senior Analyst at the German Mineral Resources Agency (DERA).
Is Europe on track to meet demand for lithium?
If there is a demand for roughly 400,000 tonnes of lithium carbonate equivalent, Europe could be self-sufficient for 25-35% of resources in 2030. The rest would have to be managed by imports from other countries.
Towards the 2040s there is potential to reduce the import dependence further as projects evolve in Europe.
However, currently, an import dependence of around 50-65% is being forecasted for the region.
Meeting the demand for lithium resources depends on what EV uptake will be, based on regulatory frameworks.
How should European policymakers ensure that more projects are set up in the continent?
Europe needs to find investors to finance potential lithium projects. To meet demand, Europe calls for €10-15bn.
Looking at the company structures of mining operators in Europe, they are mostly owned by Canadian or Australian explorers and investors.
There is no real investor sentiment here in Europe. Somebody must pay for the project development, but who is it going to be? That is one of the biggest questions.
What are the challenges facing European industry in meeting the rise in demand for lithium?
Financing and social and public acceptance are the major challenges facing the European industry. Sustainability issues as well as regulation are also of concern.
First, we need to look at the acceptance of mining in Europe. We need to implement the fact that mining is necessary and that it will have an environmental impact. It is a responsibility to minimise this footprint.
We need to mine locally in Europe; the continent cannot solely rely on imports. This is the best way to guarantee a secure and stable supply of critical metals.
Financing is another crucial challenge. Looking at Imery’s project fund for 34,000 tonnes of lithium, the financing required is a staggering €1bn.
The demand in Europe, therefore, would call for €10-15bn of investment, and as previously stated, there is currently a lack of investor sentiment here in the region. This must change.
These issues must be overcome to ensure that the rising demand for lithium in Europe is met, enabling the region to successfully transition to clean energy and reach its 2050 net zero goals.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]
[vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – mining.com” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.mining.com%2Fweb%2Feramet-in-talks-with-european-carmakers-over-argentina-lithium-plan-ceo%2F%3Futm_source%3DDaily_Digest%26utm_medium%3Demail%26utm_campaign%3DMNG-DIGESTS%26utm_content%3Deramet-in-talks-with-european-carmakers-over-argentina-lithium-plan–ceo|target:_blank”][distance desktop_type=”30″][vc_column_text]French mining group Eramet is in talks with several European carmakers over commercial agreements that would help the company finance its lithium production project in Argentina, chief executive officer Christel Bories said.
The race for lithium, a key raw material used to make batteries for electric vehicles, is speeding up as rising tensions between the United States and China push Europe’s automakers to secure their own supply chain.
“We’re talking with a lot of OEMs (Original Equipment Manufacturers, or carmakers) today,” Bories told Reuters on Saturday at a business conference in the southeastern city of Aix-en-Provence, adding that these included French ones.
“We’re currently discussing potential commercial agreements,” she said, with reference to the group’s lithium project in Argentina, adding these involve joint marketing and so-called offtake accords, or commitments to buy a certain volume of the upcoming production.
Eramet is due to start lithium production next year in Argentina in partnership with Chinese steel group Tsingshan, and has said it is interested in studying other potential sites in a lithium-rich zone of South America that also includes Chile.
“We’re positioning ourselves (in Chile), we have discussions with state-owned companies,” Bories said, with the aim to gain potential lithium concessions “in the coming months.”
Two thirds of the world’s lithium reserves are located in South America, Bories said.
Demand for electric vehicles (EVs) has increased as climate-conscious consumers snap up cars with electric powertrains, amid soaring fuel prices.
Bories confirmed commodities group Glencore was among parties to have expressed interest in helping finance Eramet’s lithium production in Argentina.
She declined to elaborate further or give the names of the European carmakers involved in the talks.
(By Mathieu Rosemain; Editing by Elaine Hardcastle)[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]
By 2030-2032, the demand for lithium products in the EU will grow 10 times, experts predict
Ukraine is one of the world leaders in lithium reserves, a strategic raw material for the production of batteries for electric vehicles. The volume of its exact reserves is a state secret, but gradually, despite the war, investors are beginning to enter this area. One of them is “UkrLitiyVydobuvannya” by Sergei Tabalov from the Kirovohrad region. The director for strategic development of this company, Denis Alyoshin , told Business Telegraph at what stage the project is.
About Ukrainian deposits
– Please tell us about your project.
— Let me start by saying that there are two types of lithium in the world. The first is in salt lakes, in South Africa, Chile, Argentina, Bolivia. There are also hard ore deposits, which in 90% of cases contain the mineral spodumene.
— What are the deposits in Ukraine?
— We have solid ore deposits. But it is in our Polokhovsky deposit in the Kirovohrad region (near the village of Smolino) that pegmatite ore is located, in which another mineral is petalite.
– There are other deposits with lithium in the Kirovograd region. Will you develop them too?
— Near us, 70 kilometers away, there is indeed a Dobraya section. It contains a combination of spodumene and petalite. But the special permit that our company has does not apply to this deposit.
— Ukraine is also rich in lithium in the Donetsk and Zaporozhye regions. What’s there?
– Indeed, there is a Shevchenkovskoe deposit in the Donetsk region, it seems that there are spodumene ores there. And there is also a deposit called “Krutaya Balka” in the Zaporozhye region. But we did not study its composition. It is under occupation. That is, out of four fields, unfortunately, one is under occupation, the other is in the frontline zone. And only two deposits in the Kirovograd region are available for production.
— UkrLitiiVydobuvannya has long had a license to develop the Polokhovskoye deposit .
— Yes, the Polokhovskoye field is so far the only one in Ukraine for which the owners of our company acquired a special permit in 2017 for UAH 119 million. Then it was about 4.5-5 million dollars. A record amount by that time for rare earth metals. In March 2021, we confirmed ore reserves in accordance with the international JORC standard. They make up about 75 million tons of pegmatite ore. This is a very large deposit by European standards.
Denis Aleshin: “We focus on the demand in the EU”
– How will you mine?
– We considered two options: light ( quarry . – Ed. ) open-pit mining and the mine method. We settled on the mine, because the environmental component is important to us. We want to be esg-friendly ( environmental, social and corporate governance. — Ed.). Although Ukraine is not yet in the European Union, we believe that it will be there in the next few years. We will do everything according to the highest European standards. The mining method brings much less harm to the environment than open-pit mining. The mine will cost much more to the investors of the project, but we choose this method. We will go deeper by about 600 meters into the depth of the deposit. The second stage will be the construction of an enrichment plant, where we will process the ore into petalite concentrate.
The mining method is much less harmful to the environment than open-pit mining
— What volumes of ore and concentrate are we talking about?
— We plan to mine one and a half million tons of ore per year. It will be annually transformed into 300 thousand tons of petalite concentrate.
— Deep processing is expected?
— Of course, we are striving to add a third stage – processing of petalite concentrate into lithium carbonate. This is better for both the investor and the government, because lithium carbonate has a higher added value. There are two options – lithium hydroxide and lithium carbonate. They are used in the production of lithium-ion batteries, but involve different technologies. Lithium carbonate is used for the so-called LFP batteries, lithium hydroxide is used in the production of NMC batteries. We analyzed the market and came to the conclusion that we want to produce lithium carbonate. We made this decision a year and a half ago, and I see that it is the right one.
– Why?
– Because the world’s largest players, and this is China, produce highly processed products using more advanced technology from lithium carbonate. You probably know that this country produces 99% of all cathodes in the world. Tesla, Li One and more EV manufacturers are switching to LFP batteries. Accordingly, we strive to ensure that the production of lithium carbonate is located in Ukraine. Whether this will work will depend on a number of factors. One of them is how attractive the investment climate in our country is.
On investment and return
– What investments are we talking about?
I am dividing our project into two phases. The first is the construction of a mine and a processing plant. This is about 300 million dollars. Stage number two – the construction of a factory for the production of lithium carbonate. That’s another $400 million. Total – 700 million dollars. Only international strategic investors can afford such a volume of investments. In terms of the size of the attraction, the project is only comparable with the privatization of Kryvorizhstal.
– What guarantees are needed?
– For an international investor to come to us with that kind of money, certain conditions are needed. International partners expect from us a complete reboot of the judicial system. The fact that we are fighting corruption and even detained the chairman of the Supreme Court of Ukraine was accepted by foreign partners with approval. It was a good sign on the one hand. But corruption has not left our lives, although Ukraine has embarked on the path of this struggle. I also witnessed how the speech of the new head of NABU was very approved in London.
– And if it does not attract funds for deep processing?
– There is always a plan “B” – to build a mine, a processing plant and sell abroad the products of the first processing stage – petalite concentrate. We are definitely not going to sell the ore. This is irrational. After several years of exporting lithium concentrate, we will get the first cash flow. These funds can be used to attract investments in the production of lithium carbonate.
– What is the return on investment?
– I orient the owner to payback within 5 years. This is a very attractive project in terms of return of funds.
— How many people need the project and when will you start mining?
– I hope that by 2027 mining and enrichment will work. We will produce petalite concentrate. It is planned to attract about 500 employees to the mine and factory.
Work continues at the field, and the company hopes that about 500 people will work at the mine and factory in the near future
About the owners
— There is information that the son of ex-premier Mykola Azarov was involved in UkrLitiyVydobuvannya. How objective is she?
— I have 15 years of investment banking experience, I worked at Deloitte. That’s why I’m used to assessing risks. Besides, my professional reputation is at stake. Therefore, we conducted a detailed due diligence ( collection and analysis of information. – Ed. ) on the history of the project owners. We aim to attract international investment. Such risks would be unacceptable.
— Who is the ultimate beneficiary of UkrLitiyVydobuvannya?
– 99.99% of the company belongs to a businessman from the Kirovograd region Sergey Tabalov. If you look at youcontrol , the authorized capital of the company was replenished by UAH 297 million a few years ago. These are the tools I now use to start the project. My budget for this year is about $3.5 million. Let’s spend them on studying, tests, examination, the so-called feasibility study. This is approximately 2-2.5 million dollars. The rest will be directed to the study of the consequences for the social and environment (the so-called environmental and social impact assessment study). We do this according to the standards of global financial corporations such as IFC, EBRD and Development Finance Corporation.
— Can these companies act as investors?
— We are negotiating with 25-30 potential investors and 5-7 financial institutions and banks, and as a result we see a pool of investors. If we are talking about the amount of 700 million dollars, in principle it cannot be raised from one investor, because this is a significant risk for him. We have no illusions that no one will invest in us before our victory and before Ukraine joins NATO and the EU, which will become an effective investment insurance. I have a year and a half to prepare the project for raising funds. Direct attraction is planned for 2025 so that we can start construction. I hope that by then we will win, join NATO and the EU.
— So what is the task of the owner?
— My task is to ensure that the Ukrainian owner, as a result of raising funds, has the maximum share in the project. We will attract a strategist as an investor, that is, a large international company in the lithium segment. Without such a company, the start of the project is impossible. In general, the standard mechanism for attracting funding in four areas will work. $400 million is a combination of export credit and debt financing from international financial institutions (IFC, EBRD, DFC). From 100 million dollars – policy funding, that is, grants from the US and the EU for projects in the field of lithium. We expect that there will be an advance payment for future products, the so-called offtake – up to $50 million. 150-200 million dollars – attraction of a strategic investor in the capital. In total – 700 million dollars.
About sales markets
Where do you see consumers ?
Petalite concentrate will be bought for processing into lithium carbonate or lithium hydroxide for lithium-ion batteries. If we fail to produce lithium carbonate ourselves, we will sell the petalite concentrate to manufacturers of batteries or ceramics and glass ceramics in Europe. Its use in this area is called technical grade, if it goes to batteries – battery grade. Our petalite concentrate will combine battery grade and technical grade. That is, we can sell it to both markets.
The end buyers of our product are huge European manufacturers of electric vehicles. If we launch the production of lithium carbonate, our customers will be manufacturers of cathodes for LFP batteries. And these are Chinese companies that are also represented in Europe. Here we have no choice, because we know that China owns the technology, raw materials and production of batteries around the world. And when people ask me how to get out of this addiction, I say that it will take at least 3-5 years until the Europeans and Americans take over this business.
The Polokhovskoye deposit in the Kirovohrad region is rich in pegmatite ore, which contains the mineral petalite
— That is, your project will start working when the volumes are in demand in Europe?
— We certainly focus on the demand in the EU. There are forecasts that by 2030-2032 the demand for lithium products, namely, petalite concentrate, lithium carbonate, lithium hydroxide, cathode, will increase 10 times. Even assuming that by 2030 all European lithium deposits will produce products from it, this will be only 4% of the world market. In addition, by 2030, Europe will need to have 25% of the world’s production of lithium carbonate. I note that our field is large by the standards of Europe, so it will be attractive not only for European, but also for any investor.
About competition
— Do you feel competition for lithium mining in Ukraine?
— I don’t see any competition in lithium mining in the next 5-10 years, not only in Ukraine, but also in the world. There is not enough lithium in the world to meet the demand of electric car manufacturers.
— I mean raiders who like to come to successful projects.
– The state is interested. We will have a large specialized investor from Europe or the USA. So far, I do not see such risks. Perhaps I am an optimist after the conference in London . I see how our partners and authorities are set up, so I don’t believe in the situation with raiding in 3-4 years.
About the interest of the Russian Federation in lithium
– Do you think that Russia’s invasion of Ukraine was also due to interest in lithium deposits, or is it a myth?
I am skeptical of such arguments. It would be more logical then to seize Bolivia. It’s a joke. In my personal opinion, the system of checks and balances does not work in Russia. And an elderly person, far from the Internet, single-handedly makes decisions in this country. This is dangerous and has led to very sad consequences.
– So there is an interest of the Russian Federation in lithium?
– If there is, then he is definitely not in the TOP 10 reasons for the start of the war in Ukraine.[/vc_column_text][distance desktop_type=”30″][/vc_column][/vc_row][/vc_section]
[vc_section][vc_row][vc_column][distance desktop_type=”30″][lvs][distance desktop_type=”30″][vc_btn title=”Source – Proactive Investors” color=”sky” i_type=”material” i_icon_material=”vc-material vc-material-perm_device_information” add_icon=”true” link=”url:https%3A%2F%2Fwww.proactiveinvestors.com.au%2Fcompanies%2Fnews%2F1019653%2Fnickelx-soars-on-signing-deal-to-acquire-advanced-nickel-and-hard-rock-lithium-projects-in-central-europe-1019653.html|target:_blank”][distance desktop_type=”30″][vc_column_text]NickelX Ltd (ASX:NKL) has struck an exclusive option agreement for the acquisition of advanced nickel and hard rock lithium exploration projects in central Europe, sending its shares skyward.
Investors have responded positively to the agreement with shares as much as 56.73% higher in morning trade to $0.105.
Advantageous climate
NickelX’s move to secure these advanced projects underscores its strategic vision and positions the company to take advantage of the growing demand for nickel, copper, cobalt and lithium, particularly in the context of the planned establishment of 27 lithium battery ‘Gigafactories’ in the region by 2030.
One of the projects covered by the agreement is the Ransko Nickel-Copper-Cobalt Project in the Czech Republic. The Ransko Permit, spanning an area of 6.93 square kilometres, is known to host significant nickel-copper-cobalt mineralisation.
While historical mapping, sampling, geophysics and limited drilling have identified the presence of valuable mineral deposits, no modern exploration techniques or resource modelling have been conducted since the mid-1960s.
Rich historical dataset
The project benefits from a rich historical dataset derived from seven known sulphide deposits, which demonstrate multiple magma pulses and sulphide events associated with local faults and intrusions.
This project has also secured funding from the EU’s €7.5 million SEMACRET Project, which aims to support exploration for critical raw materials within the EU market.
The second project covered under the agreement is the Otov Hard Rock Lithium Project in the west of the Czech Republic near the German border. Encompassing 18.1 square kilometres, the Otov Permit is known for significant lithium (spodumene) mineralisation.
Historical mining activities targeting feldspar have revealed underground workings at the Otov1 pegmatite, demonstrating the presence of valuable lithium resources.
Notably, the Otov1 Lithium-Caesium-Tantalum (LCT) pegmatite displays a vertical zoning pattern, with spodumene concentrations increasing with depth. Impressive spodumene crystals, measuring up to 70 centimetres in length, further underscore the project’s potential.
Despite these promising indicators, the permit area’s 17 additional mapped pegmatites have not been subject to modern exploration techniques, leaving ample room for future discovery and development.
Project location in the central European country of the Czech Republic.
“Very excited”
Managing director Matt Gauci said: “We are very excited to have secured the option to acquire, explore and develop the large-scale nickel-copper-cobalt mineralisation at Ransko, as well as the highly prospective Otov LCT pegmatite, which was historically only mined for feldspar, which is 1 of the 17 known LCT pegmatites, and where large spodumene crystals, up to 70 centimetres, are reported.
“Should we decide to exercise the option, the company will formalise an existing exploration partnership with Aurum Discovery Limited, a highly respected European-based exploration consultancy, with in-country representation, to ensure efficient operations, ongoing stakeholder engagement and progression of the existing EU Funded SEMACRET Project, which aims to promote exploration for Critical Raw Materials in the EU.”
Transition to green
The acquisition option agreement comes at a time when the European Union is placing increased emphasis on the transition to a green economy.
The EU Critical Raw Materials Act, adopted in March 2023, aims to enhance the EU’s self-reliance on mining essential metals such as nickel, copper, cobalt and lithium.
The recently adopted EU Green Deal allocates substantial funding, including €1 trillion for combatting climate change and €40 billion for the transition from fossil fuels to green energy.
These initiatives are expected to drive investments in the very metals that NickelX aims to dig up.
With the European market poised for significant growth in these critical metals, investors and industry observers eagerly await further developments as NickelX advances its exploration and acquisition efforts in central Europe.
“Critical minerals well demonstrated”
“It is an unprecedented time for energy transition in Europe with the passing of the EU Critical Raw Materials (CRM) Act and the adoption of the EU Green Deal, transforming the requirement for and funding of, exploration, development and mining of critical minerals,” Gauci said.
“These critical minerals are well demonstrated within both the Ransko and Otov projects.
“The projects are exceptionally well located, almost on the doorsteps of 27 lithium battery ‘Gigafactories’ in Europe planned for 2030. Ransko and Otov are within a c.500 kilometres radius of these Gigafactories and there is also potential for Volkswagen (VW) (and Czech-based subsidiary Skoda Auto) to build a Gigafactory within the Czech Republic.”[/vc_column_text][distance desktop_type=”30”][/vc_column][/vc_row][/vc_section]
