Reading through the document there are several aspects of the CRMA draft which could potentially benefit SAV:
1. Recognition that demand for lithium used in electric-vehicles batteries and energy storage is expected to increase by twelve-fold by 2030.
2. Domestic capacity targets of at least 10% of the EU's annual consumption for extraction; at least 40% of the EU's annual consumption for processing; at least 15% of the EU's annual consumption for recycling. (Although 10% seems unambiguous, the EU is currently at 0% extraction and SAV stands to be one of the first to market and supported accordingly. Processing companies are our future customers and our most likely local partner is a leader in lithium recycling technology so should be looked on favourably)
3. A new framework to select and implement Strategic Projects, which can benefit from streamlined permitting and enabling conditions for access to finance.
4. Member States are required to provide all critical raw materials projects with a one-stop-shop for all relevant permits.
5. Projects contributing to build strategic raw materials capacities across all value chain stages can apply for the status of “Strategic Project”. Strategic Projects will benefit from streamlined permitting to accelerate administrative procedures. Member States will need to comply with clear deadlines for the entire procedure, coordinate under a single procedure the relevant environmental assessments and, where relevant, apply urgency procedures in case a judicial procedure is launched. (SAV will no doubt apply?)
6. The Act will facilitate off-take agreements, bringing project promoters and downstream users together. The Regulation proposes to bring Member States and the Commission together with relevant financial institutions to discuss private sources of financing, existing financial instruments and EU funds, and to facilitate off-take agreements.
7. Where private financing alone may not be sufficient, the effective roll-out of projects along the critical raw materials value chain may require public support, including in the form of State aid.
Meanwhile SAV battles on through the current permitting system but should begin to see things become more supportive as the project matures.
I would suggest that referral is almost guaranteed if there is the opportunity to pass the buck upwards? I see the protest movement has skipped over the border to Spain to bother Extramedura and bewilder film festival goers!
https://amp.dw.com/en/spanish-lithium-eus-green-tech-homeshoring-plans-face-resistance-on-the-ground/a-64996771
Phew! Hopefully Dale will give the team a day off tomorrow as I’m sure they have been burning the midnight oil to get this finished. Some new acronyms to learn today representing the next hurdles to jump - RECAPE, DCAPE and finally the TUA. Should be clear by 2025? Meanwhile we await the EU CRMA!
Has the EU missed its 14th March publication target? Did they get feedback from the leaked bits to suggest it was just too uninspiring? While the US offered central funding via its inflation reduction act, the EU offered central buying. Would a lithium producer be subject to price caps? Can’t see VW etc being interested in delegating their global procurement to some EU quango?
Musk should ask the founder of British Volt how easy it is to launch a business in the battery supply chain. Also a lot of technical barriers to entry in the refining sector which he brushes over.
If SAV takes any financial support from the EU or Portugal, it’s unlikely that any spodumene produced will ever be allowed to leave Europe.
Not sure where you are getting the idea that he didn’t draw salary in cash? Assorting to the latest annual report he was paid £310.000 in salary, £124,000 in bonus and £43,400 in pension contributions in addition to £51,783 in non-cash share options, a total of £529,183! Dale was being paid a total of £267,464 but we will have to wait until the next report to see how much he is being paid now.
Although we must be well past our 24 months application process timeline, it would be good to be awarded strategic project status. Funding by national budgets doesn’t seem as good as EU direct funding and not so so sure about this central buying? Sounds a bit communist bloc to me. Also environmental footprint appears to be more of an option than a qualification now? However it is all moving in roughly the right direction.
EU to set up central buying agency for critical minerals-draft law
The European Union aims to set up a central purchasing agency for critical materials such as lithium and rare earths and force member states to speed up permitting for new mines and processing plants, according to draft legislation.
The Critical Raw Materials Act (CRMA), which is due to be publicly released on March 14 and was seen by Reuters on Tuesday, aims to ensure the EU has access to materials needed to meet the bloc's target of moving to net zero greenhouse gas emissions by 2050.
Both the EU and United States are seeking to curb their dependence on China, which supplies about 95% of the EU's rare earths.
In September last year, the EU said it would address the issue through the introduction of the CRMA, which also targets other key materials such as lithium, cobalt and manganese needed for electric vehicles (EVs) and wind turbines.
"It is necessary to take measures to ensure access to a secure and sustainable supply of critical raw materials in order to safeguard the union's economic resilience and strategic autonomy," the draft CRMA act said.
The CRMA would set up a new agency, the European Critical Raw Materials Board, to coordinate action, so by 2030 the EU can internally produce at least 10% and process at least 40% of strategic materials needed each year, the draft said.
Sweeping and cooperative measures were vital among the 27 EU members, it said.
"Uncoordinated national measures to ensure a secure and sustainable supply of critical raw materials have a high potential of distorting competition and fragmenting
the internal market," the draft said.
CENTRAL BUYING AGENCY
Due to the often opaque nature of markets in many critical materials, the EU would hope to strengthen its hand by setting up a central buying agency.
"The Commission shall set up a system... that is able to aggregate the demand of interested union buyers and then negotiates on their behalf with sellers globally”
Any purchasing system would comply with EU competition law, it added.
The CRMA also seeks to address complaints by businesses wanting to build new mines and processing plants about a cumbersome and lengthy process of getting permits.
Under the new legislation, the EU could name certain projects as strategic, which would mean they would get streamlined permitting and access to financing, including possible state funds, it said.
Strategic mine projects would have to get permits within 24 months and processing facilities would get them in a maximum of 12 months, the draft CRMA said.
The CRMA would also set the stage for potential strategic stockpiles by first requiring member states to report existing stocks before deciding on the needed levels of any EU wide stockpiles, it added.
The EU would also require sellers of critical minerals in the bloc to display an environmental footprint to allow potential customers to buy sustainable products if they wish.
https://www.reute
EU’s Critical Raw Materials Act to be presented in draft on Tuesday. SAV EIA submission due Friday.
Spare a thought for David Archer - he had 40 million reasons to make it happen but couldn’t! I suppose in the end the company couldn’t afford his salary while we waited and waited?
Well, we’ll see but a lot of folks here were saying back in September that SAV wouldn’t possibly need six months to resubmit the EIA documents yet here we are in March with the deadline fast approaching.
I can’t see APA being in a hurry to approve given the political importance of the decision. Pretty sure they will seek reassurance from the highest levels of the Portuguese government that they are aligned to policy.
Answers on a postcard by next Tuesday?
The latest date is 3rd June as there are 4 bank holidays in Portugal before then. I would be surprised and delighted if the answer came in April (providing its positive!) but experience of this bureaucratic process suggests it won’t.
Discussions with local stakeholders will continue after submission during the 10 weeks APA has to decide. We may be in to June before our fate is finally determined.
Ah thanks -must have been distracted by something?!
Zooming in on the graphics on the left pic, it seems to be mostly about the rehabilitation of old mines - radium and uranium? No mention of lithium as far as I can see?
Yep that was me I’m afraid! I find with my new IPhone that an attempt to refresh the page with fat fingers can end up with skipping to another open page hence posted on here rather than ARCM. Thankfully the moderator was on to it and I didn’t get banned! Onwards and upwards for SAV today!
Fast approaching…Today 11:58
“The parties are currently closing out remaining due diligence, technical and structure issues which are expected to be concluded in the next few weeks. As such, the parties have therefore agreed to a short extension of the exclusivity period to 31 March 2023 to allow for final internal approvals and signing of the definitive Joint Venture Agreement and ancillary documents.”
Only 18 working days left to seal the deal!
On top of that JORC resource estimate is an 11-19Mt exploration target.
Some people adding 2+2 and getting 19? Wonder what will happen when we get real news of approvals and the rest?