Roundtable Discussion; The Future of Mineral Sands. Watch the video here.
As I said earlier in the week pay attention to the EU strategy/politics, Stage 1 is external sources.
1. Secure access to raw materials from resource-rich countries outside the EU.
2. Facilitate the expansion/creation of European sources of raw materials.
3. Secure access to secondary raw materials through recycling in a circular economy of batteries.
What's exaggerating the timeline is permitting. CEZ have allowed over 2 years for that on the timeline which is broadly in line with more advanced projects such as SAV which is at the end of the EIA process.
The ECA Audit will surely conclude that the political issues and permitting are prohibitive to the EU Li industry. Unfortunately until then we just have to wait.
https://www.eca.europa.eu/en/Pages/DocItem.aspx?did=61213
You've totally missed the point. I was commenting on the political issues with EU mining and referring to a recent development with the ECA as an example of red tape/shifting goal posts by the EU. AMG development is positive for EMH as it contributes to the build out of Li industry in the area and contributes toward social acceptance which could make Cinovec EIA process run a bit smoother. Look at Jadar riots or Barosso legal action and UNECE issues. AMG refinery could soften that pressure for EMH when locals start to feel the economic benefit of the Li industry.
I never mentioned anything about funding for Geomet but on that subject RRP funding is ring fenced for each country so a German facility won't impact the Czech pot. Germany 25.6bn EUR Czech 7.04bn EUR
https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/index.html
Skelly, when investing in European mining you need to understand the political landscape as the EU is prohibitively political. Just today for example it's being reported that the European Court of Auditors are investigating RRP funding intended for mining projects.
AMG development in Germany brings positives to neighboring developments such as EMH, social acceptance being one which will be an important part of the EIA process when we reach public consultation.
"In close proximity to the brand-new lithium concentrate facility, AMG Brazil plans to establish a conversion plant for processing lithium concentrate to technical-grade Lithium Hydroxide. Once completed, it will feed the German upgrading plant."
The environmental aspect is a common misconception. If you look at the EU strategy the first stage is to secure raw materials from other countries.
1. Secure access to raw materials from resource-rich countries outside the EU.
2. Facilitate the expansion/creation of European sources of raw materials.
3. Secure access to secondary raw materials through recycling in a circular economy of batteries.
Re. EMH the plan includes integration as you say however it's not going to hurt having a facility 2 hours over the border.
Ground breaking ceremony at AMG Lithium's site in Germany today. Circa 200km from Cinovec, initial capacity 20ktpa ramping up to 100ktpa.
https://twitter.com/daisy_benchmark/status/1524716360319836160?s=20&t=SdRVx4KkJ-OwKY-AVL2MdA
https://www.linkedin.com/posts/chemanager_spatenstich-f%C3%BCr-die-erste-lithiumhydroxid-raffinerie-activity-6930391581719986176-oEAH?utm_source=linkedin_share&utm_medium=member_desktop_web
If you've followed my posts here you'll know the significance of this.
https://www.linkedin.com/posts/david-archer-6a73697_savannahresources-eu-portugal-activity-6930543713026748417-DpJ8?utm_source=linkedin_share&utm_medium=android_app
Also, Q2 2022 Targets per recent RNS's
1. Finalisation of Ore Variability Test Work Programme (RNS 21/02/22)
a. Ceramic Co-Product Test Work Programme
b. Water Circuits and Treatment
c. Locked Cycle Testing
d. Pilot Plant Testing
2. Decarbonisation Strategy (RNS 03/03/22)
Phase 1: Updating the estimate of the Project's greenhouse gases ('GHG') emissions based on international guidelines, and defining targets for overall GHG reduction
Phase 2: Working with sector specialists in zero-emissions vehicle and equipment manufacturing, automation, and control systems, to define and prioritise the key decarbonising initiatives
Phase 3: Defining the implementation of a decarbonisation roadmap aligned with the overall Project's operational strategy, and designing a stakeholder engagement plan with specific initiatives to involve the main stakeholders across the value chain in the global emissions reduction strategy
I'm hoping to see some positive movement next month, discussed in previous posts but in summary;
- SAV issues with APA being discussed mid June
- Portuguese refinery could be approved end June (assuming same timeline as tender sites)
- Portuguese RRP budget started to roll out this week, 09/05/22. The deadline for final achievements is 30/06/26 which will likely include GALP/Savannah 958m consortia project.
Links;
https://ec.europa.eu/economy_finance/recovery-and-resilience-scoreboard/country_overview.html?country=Portugal
https://eco.sapo.pt/2021/11/30/da-galp-a-efacec-estas-64-empresas-e-universidades-vao-receber-apoio-do-prr/
https://www.europarl.europa.eu/RegData/etudes/BRIE/2022/729408/EPRS_BRI(2022)729408_EN.pdf
That's incorrect Glengarth, under Portuguese Law, Decree-Law No. 152-B/2017, of December 11, Article 19;
The DIA is issued within the following deadlines, counted from the date of receipt by the EIA authority of the EIA duly instructed, under penalty of tacit approval:
a) Within 100 days;
b) In the case of projects subject to the access and exercise of industrial activity and potential projects national interest, within 90 days;
c) When the accredited entity intervenes to verify compliance with the EIA, in pursuant to paragraph 12 of article 14, within 70 days.
The above timeline is superseded where the Espoo Convention applies and a neighboring member state notifies their intention to participate under Article 33. Link if you wish to translate yourrself;
https://files.dre.pt/1s/2017/12/23601/0001200052.pdf
SAV unfortunately had a 1st mover disadvantage and was subject to claims by the anti mining groups. The lithium tender sites (and likely the refinery) were awarded EIA approval in 7 weeks as they tightened up the gaps which were exposed by SAV.
Public consultation has now closed on the proposed refinery 25km from Mina do Barroso.
Based on the timeline of the lithium tender sites we could see a decision made in 7/8 weeks. If approved it will be the first refinery in Portugal to recieve EIA approval.
https://participa.pt/pt/consulta/concessao-de-exploracao-de-depositos-minerais-de-litio-e-minerais-associados-romano
Other points to note;
15:10 re. 27Mt + resource increase and Portuguese Li tender
17:50 increase to 200 tpa from 175tpa
18:30 re status of mining lease
26:30 re proximity of a proposed refinery. (See below thread for latest on that)
https://twitter.com/Niccolas_Irvin/status/1519060895451787270?s=20&t=KoJ7IO6pR5gQ9tvM7xe6aQ
https://www.youtube.com/watch?v=bYqr0tn2T3A
37:30 "we're guiding toward there being an overall resource inventory of 50Mt, that will support something like a 20+ year mine development. I'm sure that in 20 years time the mine will still sport a resource base of 20 years."
Hahaha IB is close,
I mooted the idea of Tesla showing interest in European spodumene mines back in Feb/March. Despite providing a referenced summary of my logic Goodday1 on ADVFN posted "Yet we have that plonker on LSE talking about Tesla & backing his delusional post with a pumper from Twitter. Does anyone know what does this fella smokes?"
So, I took the name LSEPlonker and signed up to ADVFN for a laugh. Just so happened a month later Elon started tweeting about lithium and there's a lot more plonkers out there now for sure!!
NextgenEU funding is €800 billion and a % of that should be hitting the European critical resources space, miners/refiners. I know for certain Portugul are lining up to support Galp/Northvolt/SAV as I've seen their consortium application. Not sure what the state of play is in Czech but you'd hope they have a similar approach.
https://ec.europa.eu/info/strategy/recovery-plan-europe_en
"Haven’t been on this board for a long time and now see it’s got 3 persons all talking nonsense to likely try get cheaper entries"
I have been here for a long time and spent a lot of time researching the permitting process. Take a look at the list of EIA requirements on the below link (requires translation of the PDF), there's a lot of work to do, surveys, reports, public consultation and transboundary assessment.
https://portal.cenia.cz/eiasea/detail/EIA_MZP506?lang=cs
KC in interview last year 30:30 said he was expecting feedback on EIA 'within 2 weeks'. What they submitted was only a preliminary environmental assessment hence the list of additional information required.
https://youtu.be/AuBBecki3rI
So if the DFS suggests building or logistics which would effect protected species in the Eastern Ore Mountains where does the DFS stand?
It's been exactly the same over at SAV and they're completing EIA permitting ahead of DFS to confirm the mine plan. If you follow the EU side of things they do seem to be pushing this method which is slowing down all EU projects.
Take it or leave it, good luck with your facts and as for timelines offered by Keith I've been there before mate. Take it with a pinch of salt.
Daveri, FEED is a significant element of DFS but given what I've seen elsewhere I believe the EU are pushing for decarbonisation strategy and EIA input into European projects. Without it the DFS is saying, this project is feasible and here's a cost plan but we don't know what our carbon footprint is, how we could mitigate it or what our environmental impact is. It's just not good enough in today's ESG focussed environment.
That's why we got an updated PFS imo, It was a placeholder while they complete the other work required. EIA in particular is not a quick process given the baseline surveys required so I'd agree with Tsibis that DFS is more likely to land 2023.
Hospi, it's called the Espoo Convention. Environmentally you can't deal with hard borders as water courses may traverse countries, you could have migratory species etc.
https://unece.org/more-convention
In SAV case a Spanish organisation has made a claim to UNECE that APA were non compliant with their procedures. It's been dragging on in the background for almost a year now.
https://unece.org/env/pp/cc/accc.c.2021.186_portugal
The next hearing is in June so I'm guessing APA will await a resolution from UNECE prior to issue of EIA, if not, they run the risk of political backlash i.e. how can they award EIA for a project which is potentially in breach of EU procedure?
CM, don't forget we have a second potential customer in the North,
1. Reed Advanced Materials - Estarreja
JV Partners: Mineral Resources (AUD$11.7 billion) Neometals (AUD$962 million)
Capacity: 25ktpa
2. Aurora Lithium - Setubal
JV Partners: GALP (€9.17 billion), Northvolt (c $11 billion, private)
Capacity: 35ktpa