TIDMEMH
RNS Number : 2446T
European Metals Holdings Limited
23 November 2021
For immediate release
23 November 2021
LCA QUANTIFIES CINOVEC LITHIUM CHEMICAL PRODUCTION co(2)
eMISSIONS AND MITIGATION SCENARIOS IDENTIFIED TO PRODUCE LOW CARBON
PRODUCTS
CEZ TO PROVIDE GREEN POWER TO PROJECT
HIGHLIGHTS
-- Cinovec's Global Warming Potential has been modelled using
ISO-compliant LCA by consultancy Minviro Ltd, providing clear
resolution of the drivers of the project's emissions.
-- GWP Impact Mitigation Scenarios identified for the Cinovec
Project, potentially including solar power, electric mining fleet,
Hypex Bio explosives and use of green hydrogen for thermal energy
(Cinovec Decarbonised Case) which could make Cinovec's lithium
chemicals have some of the lowest CO(2) intensity in the world if
all impact mitigation strategies are pursued.
-- CEZ plans to provide 100% renewable energy to power the mine, the Front-End Comminution and Beneficiation (FECAB) and Lithium Chemical Plants (LCP)
-- LCA also assessed Acidification Potential (AP), Water Use and Land Use (per ISO standards).
- AP is comparable to Chilean Brine but only 13% of the
equivalent for Australian spodumene processed in China.
- Cinovec Water Use projected to be lower than all benchmarks
and <5% of Chilean Brine Water Use even when water evaporated
from the brine is not included in the water use calculation.
European Metals Holdings Limited ("EMH", or "the Company") (ASX
& AIM: EMH, OTC - Nasdaq Intl ADS: EMHXY) is pleased to provide
an update in relation to the outcomes of the Life Cycle Assessment
conducted by Minviro in relation to lithium battery chemicals
production from the Cinovec mine.
Keith Coughlan, Executive Chairman, said "We are extremely
pleased that the Minviro LCA has confirmed what we have believed to
be the case for a long time - Cinovec has the potential to have the
lowest overall environmental impacts compared to other conventional
lithium battery metals projects not only in Europe but also on a
global basis. With the use of solar power and other optimisations
the Cinovec Project will set a standard by which all other
conventional lithium producers could be judged. We expect the
environmental credentials of the Cinovec Project will help make its
product valuable to end users, particularly in light of the new EU
requirements in relation to greenhouse emissions. Not only does the
optimised model demonstrate very low CO2 emissions, the Project
also delivers excellent results with regards to acidification and
water consumption. As Cinovec is an historic underground mine with
minimal social and environmental impacts, the entire ESG
credentials of the Project are very strong.
In addition, we expect to shortly provide a market update
covering the additional benefits of a mine backfill study and a
revised PFS which updates the project economics and value of the
Project."
Mine, FECAB and LCP to be powered by Solar Power Plant
CEZ, EMH's joint venture partner in in the Cinovec Lithium
Project, plans to provide 100% renewable energy to power the mine,
the Front-End Comminution and Beneficiation (FECAB) And Lithium
Chemical Plants (LCP) . CEZ currently owns renewables installations
with aggregate power generation capacity of 1720 MW. This capacity
will increase by 1500 MW by 2025.
The renewable energy sources will be capable of providing all
the required power for all aspects of the Cinovec Project including
the mine, the FECAB plant as well as the Lithium Chemical Plant
under normal operating conditions. The Company is also considering
the use of electric mining equipment to further reduce the CO(2)
footprint at Cinovec.
Cinovec Life Cycle Assessment
As previously announced, Minviro (a UK-based and globally
recognised sustainability and life cycle assessment consultancy)
was engaged to conduct a Life Cycle Assessment (LCA) for the
Cinovec Project's proposed lithium battery-grade chemicals, Lithium
Carbonate (Li(2) CO(3) ) and Lithium Hydroxide Monohydrate (LiOH)
(refer to the Company's ASX release dated 10 June 2021). The LCA
was completed at the end of 3Q21 and the full results underwent
independent external QA/QC peer review, including ISO compliance
review, before finalisation.
The Minviro work has assessed the LCA for both Li(2) CO(3) and
LiOH based upon the PFS studies published by EMH for Li(2) CO(3)
(refer to the Company's ASX release dated 19 April 2017) and LiOH
(refer to the Company's ASX release dated 17 June 2019) (together
the PFS). The work included assessments of Global Warming Potential
(GWP), Acidification Potential (AP), Water Use and Land Use
compared with the most relevant global benchmarks with proven
flowsheets for lithium chemicals production (Chilean brine;
Australian spodumene; and US sedimentary clay).
Minviro also assessed GWP reduction strategies being advanced by
Geomet management (as part of the ongoing Definitive Feasibility
Study) to reduce the carbon footprint of Cinovec, including full
electrification of the mine and mining vehicle fleet; sourcing all
electrical power for both the mine and lithium processing plant
from a proposed co-developed photovoltaic cell array adjacent to
the Cinovec processing plant; and green hydrogen as replacement for
conventional gas in the ore roasting process (Decarbonization
Case).
The LCA was conducted according to the requirements of the
ISO-14040:2006 and ISO-14044:2006, including a third-party review
from LCA experts to ensure that the LCA study is scientifically
robust.
Results of the Life Cycle Assessment
LiOH Production
LiOH products can have different environmental impacts depending
on the natural resource they are produced from and the process
technology chosen in flowsheets. A comparison of how the Cínovec
LiOH product will compare to existing process pathways is shown
below in Figure 1.
The GWP for the Cinovec PFS case is expected to be around 16.6
kg CO(2) eq. per kg LiOH. For LiOH from Chilean brine, the GWP is
estimated to be 6.6 kg CO(2) eq. per kg LiOH. For Australian
spodumene converted in China the impact is 15.5 kg CO(2) eq. per kg
LiOH. LiOH produced from Nevada sedimentary clay resources has a
GWP that is calculated to be 20.7 kg CO(2) eq. per kg LiOH. The GWP
calculated for the Cinovec Decarbonised case which would involve a
number of significant modifications to the project as considered in
the 2019 PFS could be one of the lowest in the world, estimated to
be around 2.9 kg CO(2) eq. per kg LiOH
For all five production routes shown in Figure 1 the chemical
processing is the largest driver of the impact. Transport is
minimal for all routes except for the Australian spodumene route,
where the spodumene concentrate is transported to China; and the
LiOH product from all production routes is transported 400 km from
the Port of Rotterdam to provide the GWP impacts as delivered at
the same end-users.
Refer Figure 1 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 1: GWP Impact of LiOH produced from Cinovec PFS (2019),
the theoretical Cinovec Decarbonised Case, for Chilean Brine,
Australian Spodumene converted in China and US Sedimentary Clay.
Source: Minviro
The Acidification Potential (AP) impact of the Cínovec product
and the three comparison scenarios is shown in Figure 2. The AP
impact for Chilean brine is the lowest: 0.03 mol H(+) eq. per kg
LiOH, followed by the AP impact of the Cínovec project which is
calculated to be 0.05 mol H(+) eq. per kg LiOH. The AP impact is
much higher for the spodumene production route and the US sediment
route: 0.47 and 0.36 mol H(+) eq. per kg LiOH respectively. This is
mainly due to the embodied AP impact of sodium hydroxide used in
the process. The AP impact of the Cinovec Decarbonised scenario is
not included, as for a number of decarbonised characterisation
factors, no AP impact is currently available.
Refer Figure 2 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 2: AP Impact of LiOH produced from Cinovec PFS (2019) and
for Chilean Brine, Australian Spodumene
converted in China and US Sedimentary Clay. Source: Minviro
The water use impact for the four scenarios is shown in Figure
3. The water use has been split into direct water use and the
associated increase of the AWARE water scarcity factor. For all
three comparison scenarios, a water scarcity factor is used
according to the AWARE Methodology used by Minviro for comparing
freshwater use at different locations. Since the Atacama is the
driest place in the world, freshwater use is considered 100x more
impactful to ecosystems than it is in places like the Czech
Republic where there is plenty of water. Again, the Cínovec
Decarbonised scenario is not included, as the impact on water use
of the decarbonisation scenarios is not available.
Refer Figure 3 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 3: Water Impact of LiOH produced from Cinovec PFS (2019)
and for Chilean Brine, Australian Spodumene
converted in China and US Sedimentary Clay. Source: Minviro
Li(2) CO(3) Production
As with LiOH, Li(2) CO(3) products can have different
environmental impacts depending on the natural resource they are
produced from and the process technology chosen in flowsheets. A
comparison of how the Cínovec carbonates product GWP impact will
compare to existing process pathways is shown below in Figure
4.
The GWP calculated for the Chilean brine is the lowest: 2.7 kg
CO(2) eq. per kg Li(2) CO(3) . For the Cinovec PFS case, the Li(2)
CO(3) product has a GWP of 15.2 kg CO(2) eq. per kg Li(2) CO(3) .
Li(2) CO(3) produced from Nevada sedimentary clay resources has a
GWP that is calculated to be 18.1 kg CO(2) eq. per kg Li(2) CO(3) .
For Australian spodumene converted in China the impact is 24.2 kg
CO(2) eq. per kg Li(2) CO(3) . Li(2) CO(3) produced from the
Cinovec De-carbonised case has a GWP that is calculated to be 2.4
kg CO(2) eq. per kg Li(2) CO(3.)
For all production routes shown, the chemical processing is
again the largest driver of the impact. Transport impact is minimal
for all routes except for the Australian spodumene route, where the
spodumene concentrate is transported to China and the Li(2) CO(3)
product from all production routes is transported 400 km from the
Port of Rotterdam to provide the GWP impacts as delivered at the
same end-users.
Refer Figure 4 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 4: GWP Impact of Li(2) CO(3) produced from Cinovec PFS
(2019), the theoretical Cinovec Decarbonised Case, for
Chilean Brine, Australian Spodumene converted in China and US
Sedimentary Clay. Source: Minviro
The AP impact of the Cínovec product and the three comparison
scenarios is shown in Figure 5. The AP impact for Chilean brine is
the lowest: 0.03 mol H+ eq. per kg Li(2) CO(3) . The AP impact
calculated for the Cínovec PFS case is 0.05 mol H+ eq. per kg Li(2)
CO(3) . The AP impact for Li(2) CO(3) produced from spodumene is
again higher: 0.28 mol H+ eq. per kg Li(2) CO(3) . For US
Sedimentary Clay, the AP impact is calculated to be 0.33 mol H+ eq.
per kg Li(2) CO(3.)
Refer Figure 5 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 5: AP Impact of Li(2) CO(3) produced from Cinovec PFS
(2019), for Chilean Brine, Australian Spodumene
converted in China and US Sedimentary Clay. Source: Minviro
The water use impact for the four scenarios is shown in Figure
6. The decarbonised scenario is not included. The water use has
been split into direct water use and the associated regional water
consumption increases due the AWARE water scarcity factor. For all
three comparison scenarios the increase due to the water scarcity
impact increases the water impact significantly compared to the
direct water use and the water use of consumed electricity and
materials. The water use impact of the Cinovec Li2CO3 product is
68.7 kg water eq. per kg Li2CO3.
Refer Figure 6 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 6: Water Impact of Li(2) CO(3) produced from Cinovec PFS
(2019), for Chilean Brine, Australian Spodumene
converted in China and US Sedimentary Clay. Source: Minviro
GWP Impact Mitigation Scenarios for the Cinovec Project (Cinovec
Decarbonisation Case)
2030 Czech Electricity Grid mix
CEZ s.a. notified Minviro that the electricity generation within
the Czech Republic will reduce its reliance on coal as a primary
means of electricity generation by 2030. The revised grid mix was
modelled by Minviro.
When assuming the Czech electricity grid mix for 2030, the GWP
of impact of the LiOH product decreases from 16.6 to 12.1 kg CO(2)
eq. per kg LiOH. For Li(2) CO(3) , the GWP impact decreases from
15.7 to 11.1 kg CO(2) eq. per kg Li(2) CO(3) for the Czech Republic
2030 electricity grid mix.
Solar Power Plant
When renewable electricity is incorporated from a photovoltaic
source, the contribution of the GWP impact of electricity reduces
from 7.9 kg CO(2) eq. per kg LiOH (Czech Republic grid) to 1.0 kg
CO(2) eq. per kg LiOH (photovoltaic). This is primarily due to the
GWP intensity of the existing Czech grid, which is reliant on
lignite coal. For a scenario where the electricity used by the
Cínovec projects comes from a photovoltaic source, the GWP impact
of the LiOH reduces from the original value of 16.6kg CO(2) eq. per
kg LiOH to 9.7 kg CO(2) eq. per kg LiOH.
Electric Mining Fleet
For a scenario where the existing diesel fuelled fleet is
replaced by an electric underground mining fleet, the contribution
of the GWP impact of the mining fleet reduces from 0.5 kg CO(2) eq.
per kg LiOH (diesel fuelled) to 0.1 kg CO(2) eq. per kg LiOH
(electric, assuming a photovoltaic electricity source). For a
scenario where the electricity from the Cínovec projects comes from
a photovoltaic source and the mining fleet is assumed to be
electric, the GWP impact of the LiOH product is 9.2 kg CO(2) eq.
per kg LiOH.
Hypex 50 Explosives
When replacing the conventional emulsion with Hypex50
explosives, used to liberate the ore and for underground
development, of which 96% consists of hydrogen peroxide and water,
the contribution of the explosives to the GWP impact reduces from
0.3 kg CO(2) eq. per kg LiOH (conventional emulsion) to 0.1 kg
CO(2) eq. per kg LiOH (Hypex50 bio explosives). For a scenario
where the explosives are sourced from Hypex50, the electricity is
sourced from a renewable photovoltaic source and the underground
mining fleet is electric, the GWP impact on the LiOH product is 9.0
kg CO(2) eq. per kg LiOH.
Use of Hydrogen
In the fourth scenario, it is assumed that the thermal energy
provided to the underground mine and the chemical plant through the
combustion of natural gas is supplied by hydrogen that is produced
using photovoltaic electricity. When replacing natural gas by
hydrogen as a thermal energy source for the chemical plant and
underground mine, the GWP impact of the thermal energy requirements
reduces from 5.7 kg CO(2) eq. per kg LiOH (natural gas) to 0.8 kg
CO(2) eq. per kg LiOH (photovoltaic produced hydrogen). In a
scenario where it assumed that all electricity consumed by the
Cínovec project is produced from a photovoltaic source, the
underground mining fleet is electric, the explosives are Hypex50
Bio and the thermal energy used by the underground mine and the
chemical plant comes from hydrogen, the overall GWP impact on the
LiOH product reduces to 3.3 kg CO(2) eq. per kg LiOH.
Impact Mitigation scenario analysis
The GWP impact of the decarbonisation scenarios on mining,
concentrating, chemical refining and transport stage of the Cínovec
project's LiOH product in the PFS case is shown in the waterfall
chart contained below in Figure 7. When all four decarbonizing
scenarios are utilised, the GWP impact reduces from 16.6 to 3.3 kg
CO(2) eq. per kg LiOH.
Refer Figure 7 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 7: Reduction in GWP of LiOH for Decarbonization
Scenarios.
Source: Minviro
These four scenarios also have been investigated for Li(2) CO(3)
. The GWP impact of the decarbonisation scenarios on mining,
concentrating, chemical refining and transport stage of the Cínovec
project's Li(2) CO(3) product in the PFS case is shown in the
waterfall chart contained below in Figure 8. When all four
decarbonizing scenarios are utilised, the GWP impact reduces from
15.7 to 2.8 kg CO(2) eq. per kg Li(2) CO(3) .
Refer Figure 8 in this document:
https://www.investi.com.au/api/announcements/emh/7b59ad15-7be.pdf
Figure 8: Reduction in GWP of Li2CO3 for Decarbonisation
Scenarios.
Source: Minviro
BACKGROUND INFORMATION ON CINOVEC
Cinovec Lithium/Tin Project
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium/Tin Project. Geomet has
been granted a preliminary mining permit by the Ministry of
Environment and the Ministry of Industry. The company is owned 49%
by EMH and 51% by CEZ a.s. through its wholly owned subsidiary,
SDAS. Cinovec hosts a globally significant hard rock lithium
deposit with a total Measured Mineral Resource of 53.3Mt at 0.47%
Li(2) O and 0.08% Sn, Indicated Mineral Resource of 361.9Mt at
0.45% Li(2) O and 0.04% Sn and an Inferred Mineral Resource of
295Mt at 0.39% Li(2) O and 0.04% Sn containing a combined 7.39
million tonnes Li(2) CO(3) Equivalent and 263kt of tin ( refer to
the Company's ASX release dated 13 October 2021) (Resource Upgrade
at Cinovec Lithium Project).
An initial Probable Ore Reserve of 34.5Mt at 0.65% Li(2) O and
0.09% Sn reported 4 July 2017 ( Cinovec Maiden Ore Reserve -
Further Information ) has been declared to cover the first 20 years
mining at an output of 22,500tpa of Li(2) CO(3) ( refer to the
Company's ASX release dated 11 July 2018) ( Cinovec Production
Modelled to Increase to 22,500tpa of Li(2) CO(3) ).
This makes Cinovec the largest hard rock lithium deposit in
Europe, the fourth largest non-brine deposit in the world and a
globally significant tin resource.
The deposit has previously had over 400,000 tonnes of ore mined
as a trial sub-level open stope underground mining operation.
In June 2019 EMH completed an updated Preliminary Feasibility
Study, conducted by specialist independent consultants, which
indicated a return post tax NPV of USD1.108B and an IRR of 28.8%
and confirmed that the Cinovec Project is a potential low operating
cost, producer of battery grade LiOH or battery grade Li(2) CO(3)
as markets demand (refer Company's ASX release dated 17 June 2019).
It confirmed the deposit is amenable to bulk underground mining.
Metallurgical test-work has produced both battery grade LiOH and
battery grade Li(2) CO(3) in addition to high-grade tin concentrate
at excellent recoveries. Cinovec is centrally located for European
end-users and is well serviced by infrastructure, with a sealed
road adjacent to the deposit, rail lines located 5 km north and 8
km south of the deposit and an active 22 kV transmission line
running to the historic mine. As the deposit lies in an active
mining region, it has strong community support.
The economic viability of Cinovec has been enhanced by the
recent strong increase in demand for lithium globally, and within
Europe specifically.
There are no other material changes to the original information
and all the material assumptions continue to apply to the
forecasts.
CONTACT
For further information on this update or the Company generally,
please visit our website at www.europeanmet.com or see full contact
details at the end of this release.
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Director Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary Tel: +61 (0) 417 945 049
Email: dennis@europeanmet.com
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce/ Darshan Patel Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell/Jasper Berry (Broking)
Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9950
Damon Heath
Erik Woolgar
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial PR
- Aus) Tel: +61 (0) 433 112 936
David Tasker
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release. The person who
authorised for the release of this announcement on behalf of the
Company was Keith Coughlan, Executive Chairman.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
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in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
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This announcement has been prepared in compliance with the JORC
Code 2012 Edition and the current ASX Listing Rules.
PREVIOUSLY REPORTED INFORMATION
The information in this report relating to Exploration Results,
Mineral Resources, Ore Reserves, production targets and forecast
financial information derived from a production target is extracted
from the Company's ASX releases referred to in the body of the
report and are available to view on the Company's ASX announcements
platform (ASX: EMH). The Company confirms that it is not aware of
any new information or data that materially affects the information
included in the original market announcements and, in the case of
estimates of Mineral Resources or Ore Reserves, that all material
assumptions and technical parameters underpinning the estimates in
the relevant market announcement continue to apply and have not
materially changed. The Company confirms that the form and context
in which the Competent Person's findings are presented have not
been materially modified from the original market announcement.
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MSCGZMZMVFLGMZG
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November 23, 2021 01:59 ET (06:59 GMT)
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