TIDMALK
RNS Number : 1788Z
Alkemy Capital Investments PLC
12 May 2023
12 May 2023
Alkemy Capital Investments Plc
MOU with lithium technology company to unlock a major new source
of lithium feedstock
Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is
pleased to announce that its wholly-owned subsidiary Port Hedland
Lithium Pty Ltd (" PHL ") has executed a Memorandum of
Understanding (" MOU") with Lithium Services Pty Ltd (" LIS "), a
world leading lithium engineering and technology company, to
explore the development of a merchant lithium refinery located at
Port Hedland dedicated to the processing of spodumene fines and
tailings - a major new source of lithium feedstock.
HIGHLIGHTS
-- Australia is the world's largest producer of lithium however
many mines are suffering significant losses during spodumene
concentrate production with up to 45% of the lithium contained
being lost to tailings.
-- PHL and LIS are looking to develop a merchant lithium
refinery at Port Hedland which, based on a proven fines processing
technology, will provide miners with the opportunity to recover
lithium from fines materials which would otherwise be lost to
tailings.
-- The refinery, located at the Boodarie Strategic Industrial
Area, will offer spodumene producers a refining solution for
lithium tailings and other fines material with direct access to the
premium European battery market.
-- The scoping study will proceed in parallel with the
engineering and approvals work currently underway for the first
train of the Port Hedland lithium sulphate refinery.
Sam Quinn, Director of Alkemy commented:
"We are delighted to be working with LIS, a world leading
lithium engineering and technology company, to examine this
exciting opportunity to develop new lithium processing solutions
for miners in Australia."
"There are major yield losses during spodumene concentrate
production, with significant volumes of lithium units ending up in
mine tailings. This represents a significant challenge for miners
from an economic and sustainability perspective, and both PHL and
LIS believe there is a major opportunity to provide unique merchant
lithium refining solutions for miners to improve their mine
economics, diversify their revenue streams and maximise the
sustainability of their operations."
"Working with LIS on the potential to develop a merchant lithium
refinery dedicated to the processing of spodumene fines and
tailings will proceed in conjunction with the engineering and
approvals work already underway for train 1 processing standard
specification spodumene concentrate at Port Hedland. Running these
two work streams in parallel will provide us with significant
optionality prior to making a final investment decision on the
development of the Port Hedland lithium sulphate refinery."
Jeremy Chang, Executive Director of LIS commented:
"Together with PHL, we believe that LIS's world class
engineering and process technology that is proven in operation in
China can be deployed successfully to process spodumene fines and
other tailings material from lithium mines in the Pilbara region of
Australia."
"We look forward to working with PHL to examine this unique
opportunity in the near future with a view to developing a world
leading lithium refinery at Port Hedland that will unlock a major
new source of lithium feedstock for PHL."
Memorandum of understanding
Under the MOU signed between PHL and LIS, the parties have
agreed to immediately commence a scoping study into the development
of a merchant lithium refinery at Port Hedland dedicated to the
processing of spodumene fines and other lithium tailings material
to produce primary lithium sulphate.
As part of the scoping study, the parties will determine whether
or not to negotiate and enter into a binding engineering,
technology and cooperation agreement under which (amongst other
things) LIS will supply lithium processing technology and
engineering services to PHL to enable it to develop the lithium
refinery dedicated to the processing of spodumene tailings.
The scoping study is expected to take 90 days and PHL and LIS
will undertake this work in conjunction with the engineering and
approvals work currently underway for train 1 of the Port Hedland
lithium sulphate refinery and with support from PHL's existing
engineering and environmental advisors.
The existing engineering and approvals work underway is based on
the processing of spodumene concentrate meeting standard grade and
size specifications.
Following completion of the scoping study, if PHL and LIS
determine that the opportunity is technically, environmentally and
economically viable, the parties propose to enter into a binding
engineering, technology and cooperation agreement that would
provide for the parties to work together to complete a feasibility
study, sign suitable spodumene tailings feedstock supply
agreement(s), finalise the necessary environmental approvals and
proceed to develop the refinery.
In the execution phase, PHL agrees to fund 100% of the cost of
the necessary feasibility study, environmental approvals and
development of the refinery (including LIS's consulting costs
during those development phases), with LIS incentivised to deliver
a successful refinery development.
About LIS
LIS is part of a world leading lithium refining engineering and
technology group that has worked with some of the largest lithium
mining and refining companies in the world.
LIS is backed by the largest calcining system supplier for
lithium salt production in the world.
Lithium tailings
In the year ending 30 June 2023, Australia is forecast to export
approximately 2.3 million tonnes of spodumene concentrate.
Based on published ore reserve yield losses during spodumene
concentrate production, there is a significant volume of lithium
units potentially available as feedstock for a refinery dedicated
to the processing of lithium fines and tailings. This yield loss is
between 15% and up to 45% of lithium ore reserves, with the lithium
units ending up in mine tailings facilities.
If PHL and LIS are successful in developing a merchant lithium
refinery dedicated to the processing of spodumene fines and
tailings feedstock, this will unlock a major new source of lithium
feedstock and improve the overall sustainability of lithium
mining.
PHL has already secured appropriate spodumene fines and tailings
feedstock samples for the test work to be undertaken during the
scoping study work with LIS.
Through both the Port Hedland lithium sulphate refinery and the
lithium hydroxide refinery being developed by Tees Valley Lithium
at Teesside in the UK, the company is poised to have the capacity
to process lithium units to produce lithium hydroxide for the
premium European lithium market with the world's lowest embedded
carbon. Further information
For further information, please visit Alkemy's website:
www.alkemycapital.co.uk or TVL's website
www.teesvalleylithium.co.uk .
-ends-
Alkemy Capital Investments Plc Tel: 0207 317 0636
Sam Quinn info@alkemycapital.co.uk
VSA Capital Limited Tel: 0203 005 5000
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance)
Shard Capital Partners LLP Tel: 0207 186 9952
Damon Heath damon.heath@shardcapital.com
Tel: 0207 186 9927
Isabella Pierre isabella.pierre@shardcapital.com
NOTES TO EDITORS
Alkemy is seeking to establish the world's leading independent
and sustainable lithium hydroxide production by developing
state-of-the-art lithium sulphate and lithium hydroxide facilities
in Australia and the UK.
Alkemy, through its wholly-owned subsidiary Tees Valley Lithium,
has secured a 9.6 ha brownfields site with full planning permission
at the Wilton International Chemicals Park in Teesside, a major UK
Freeport, to build the UK's first and Europe's largest lithium
hydroxide processing facility.
Tees Valley Lithium has completed a Class 4 Feasibility Study
for its proposed lithium hydroxide refinery which will process
feedstock imported from various sources to produce 96,000 tonnes of
premium, low-carbon lithium hydroxide annually, representing around
15% of Europe's projected demand.
Alkemy has also secured a 43 ha site near Port Hedland, Western
Australia to build a world-class sustainable lithium sulphate
refinery that will provide reliable feedstock for Tees Valley
Lithium.
Forward Looking Statements
This news release contains forward--looking information. The
statements are based on reasonable assumptions and expectations of
management and Alkemy provides no assurance that actual events will
meet management's expectations. In certain cases, forward--looking
information may be identified by such terms as "anticipates",
"believes", "could", "estimates", "expects", "may", "shall",
"will", or "would". Although Alkemy believes the expectations
expressed in such forward--looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected. Mining exploration and development
is an inherently risky business. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property
and the ultimate exercise of option rights, which may include
changes in market conditions, changes in metal prices, general
economic and political conditions, environmental risks, and
community and non-governmental actions. Such factors will also
affect whether Alkemy will ultimately receive the benefits
anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any of the
forward--looking statements. These and other factors should be
considered carefully and readers should not place undue reliance on
forward-looking information.
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