European Metals: Cinovec Lithium Project could begin operation by mid-2022
2019-07-24 15:34:28 [Print]
European Metals Holdings (EMH) said on July 22 that it could begin operations at its Cinovec lithium project in the Czech Republic by mid-2022, and is holding preliminary discussions with potential customers.
Czech utility CEZ , in which the state holds a 70% share, last week said it had conditionally agreed to provide 2 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 licenses 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.
The CEZ loan is only a small part of the total capital expenditure of $480 million, but Keith Coughlan, managing director at European Metals, said it was a commitment that inspired confidence while CEZ carries out due diligence on the project.
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.
Czech utility CEZ , in which the state holds a 70% share, last week said it had conditionally agreed to provide 2 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 licenses 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.
The CEZ loan is only a small part of the total capital expenditure of $480 million, but Keith Coughlan, managing director at European Metals, said it was a commitment that inspired confidence while CEZ carries out due diligence on the project.
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.
Lithium Iron Phosphate Li 3.9%min Delivered China
Unit:RMB/mt
China's ithium iron phosphate producers' sales to production ratio statistics by province by month
Unit: %
