13/09/2016 - 12:50

European Metals cuts lithium mine cost

13/09/2016 - 12:50

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The capital cost of ASX-listed European Metals’ potential lithium mine and processing plant in the Czech Republic has come down by around $US85 million, to $US169 million, the company revealed today.

Demand for lithium is projected to shoot up due to growing usage of battery storage.

The capital cost of ASX-listed European Metals’ potential lithium mine and processing plant in the Czech Republic has come down by around $US85 million, to $US169 million, the company revealed today.

European Metals said it had reviewed a scoping study on its Cinovec project to improve design and operating procedures, with about $US47 million of savings on plant costs and $US38 million on mining capital costs.

The company would need to upgrade a portion of its inferred and indicated resources at the deposit before the project’s economic viability is confirmed, however.

European Metals chief executive Keith Coughlan said low capital costs and improving lithium demand made the project an exceptional opportunity.

“Cinovec is currently the largest lithium deposit in Europe and conveniently located in close proximity to multiple end-users,” he said.

“Enhanced economics are making the project even more attractive.

“The reduced capital requirements that we have achieved improve the project economics and shorten the payback period.

“This assists greatly in attracting development finance.

“We will continue to report on improvements to aspects of the pre-feasibility study.

“Metallurgical testing and test work on the front end of the proposed process route are progressing with positive results that we expect to announce shortly.”

Shares in European Metals were down 2.4 per cent to 60 cents each at the time of writing.

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