- European Metals Holding Limited (DI)
- 27 November 2024 14:33:31
Source: Sharecast
The AIM-traded firm said the decision was made after extensive technical, logistical, and environmental evaluations, aiming to optimise construction costs, operational efficiencies, and sustainability.
It said the EPR1 site offered significant advantages over previously considered locations, including superior road and rail infrastructure, established utilities, and geotechnical characteristics conducive to streamlined construction and operations.
Rehabilitated from its past as a coal-fired power plant, the site was aligned with regional and EU decarbonisation strategies, with planned clean energy sources such as solar installations and potential small modular reactors enhancing its sustainability credentials, EMH explained.
The Cinovec Project’s updated configuration, incorporating the new site, was expected to deliver reduced capital and operating expenses.
Key improvements included shorter tailings transport distances, optimised materials handling, and opportunities for increased production capacity.
The definitive feasibility study (DFS), currently being updated to reflect the changes, was set for completion by mid-2025.
Engineering advancements in the project’s beneficiation process were also set to improve recovery rates, concentrate grades, and operating costs.
The board said the adoption of a 100% flotation circuit for lithium ore had increased recovery rates from 87% to over 94% while enhancing concentrate quality.
Further process optimisations were underway, aiming to refine reagent use and energy efficiency.
“The final selection of the EPR1 site for the processing plant provides significant benefits, including access to excellent existing infrastructure across rail, road, power and water for Cinovec,” said executive chairman Keith Coughlan.
“This strategic location in an existing industrial area reduces costs and improves constructability, and offers the potential for expanded processing capacity and further cost reducing synergies as it is adjacent to the CEZ-operated EPR2 power station.
“We are excited that it allows access to already in progress green energy sources from solar power installations and potentially, a Small Modular Nuclear Reactor.”
Coughlan said the developments delivered into the company’s decarbonisation strategy, designed to ensure the project's competitiveness, sustainability and long-term viability.
“Our ongoing work to update the DFS is focused on reducing costs, increasing production tonnages and volumes, and further enhancing the processing flowsheet.
“The confirmation of 100% flotation in the FECAB circuit will decrease both opex and capex and improve lithium recovery and concentrate quality, further reducing the environmental impacts of the Cinovec Project.
“With these advancements, we are confident that Cinovec will play a key role in Europe's lithium supply and contribute to the green energy transition.”
At 1127 GMT, shares in European Metals Holdings were up 5.07% at 7.88p.
Reporting by Josh White for Sharecast.com.