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REG - Alkemy Capital Invs. - Australia’s First Lithium Sulphate Plant

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RNS Number : 1695V  Alkemy Capital Investments PLC  08 August 2022

 

8 August 2022

 

Alkemy Capital Investments Plc

 

Alkemy to build Lithium Sulphate Plant at Port Hedland, Western Australia

 

 

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) is pleased to announce
that the company will build a Lithium Sulphate plant at Port Hedland,
Australia's largest export port located in the Pilbara region of Western
Australia, to feed the Tees Valley Lithium Ltd ("TVL") Lithium Hydroxide plant
at the Wilton International Chemicals Park, Teesside, UK.

 

HIGHLIGHTS

 

·    Alkemy to build Lithium Sulphate (LSM) plant at Port Hedland, in the
Pilbara region of Western Australia to serve as a refining hub for Australian
miners.

·    Port Hedland hosts the largest bulk export port in the world and the
largest container port in Australia.

·    The Pilbara is a major spodumene producing region and centrally
located near existing and planned spodumene producers in Australia.

·    Port Hedland LSM plant production will supply the expansion of TVL's
Wilton Lithium Hydroxide (LHM) facility, with Train 1 set to produce 24,000
tpa of battery-grade lithium hydroxide from 2024.

·    Port Hedland LSM plant will offer Australian spodumene producers
mid-stream processing options with direct access to the premium European
battery market.

·    Port Hedland LSM plant will export a higher-grade, lower-volume
product resulting in less tonnage shipped and less transport carbon emissions.

 

Alkemy announces a plan to build an LSM plant at Port Hedland in the Pilbara
region of Western Australia.

 

Train 1 of the Port Hedland LSM plant is set to process spodumene from
Australian lithium miners to produce 40,000 tpa of primary LSM, with Trains
2-4 adding a further 120,000 tpa primary LSM production in future expansions.

 

The Port Hedland LSM plant, together with TVL's planned LHM processing
facility at the Wilton International Chemicals Park in Teesside, UK, will
deliver a low carbon, de-risked lithum supply chain between Western Australian
spodumene producers and the burgeoning European lithium battery cell market.

 

Alkemy and TVL Director, Sam Quinn, commented:

 

"Alkemy is delighted to announce its plans to develop the Port Hedland LSM
plant.

 

Working with leading global metals trader Traxys to source the spodumene
feedstock for the Port Hedland LSM plant, Alkemy is now progressing
discussions to finalise and secure the optimal site for the Port Hedland LSM
plant and the definitive spodumene feedstock agreement to underwrite the
development of the plant.

 

Building the Port Hedland LSM plant will provide Australian spodumene
producers with a complete mid-stream refining solution with direct access to
the European market.

 

Importantly, it will also bring major downstream processing and value adding
to the Pilbara region of Western Australia, with significant multiplier
benefits for the local community, whilst reducing the carbon footprint of the
end to end lithium battery cell supply chain to meet new European emissions
standards."

 

 

Alkemy and its wholly-owned subsidiary TVL recently announced a supply
agreement with leading global physical trader and merchant in metals and
natural resources, Traxys North America LLC, a member of the Traxys Group of
companies ("Traxys").

 

Alkemy and TVL are partnering with Traxys to source and supply lithium
feedstock for TVL's LHM processing facility in the UK.

 

This partnership with Traxys will also encompass the sourcing and supply of
spodumene concentrate to the Port Hedland LSM plant for Train 1.

 

The Traxys partnership will offer existing and new Australian spodumene
producers the opportunity to supply their spodumene concentrate to a merchant
mid-stream lithum hydroxide refining solution through TVL's Port Hedland
primary LSM plant in Australia and the Wilton LHM plant in the UK.

 

Based on market feedback to date, this offering is expected to be most
attractive to Australian spodumene concentrate producers as it will provide
them with:

 

·    Direct access to the premium European lithium battery gigafactory
market;

·    Downstream processing capability in Australia at no capital cost;

·    Ability to reduce net carbon emissions in the lithium battery cell
supply chain by lowering the volume of material transported to downstream
refining capacity; and

·    Lower overall delivered costs of spodumene to customers by reducing
transport distances and volumes.

 

More than 700 GW of lithium battery gigafactories are planned for construction
across Europe which will require over 325,000 tonnes of LHM per annum from
2030.

 

Currently, there is no LHM production capacity in Europe or the UK.

Approximately half of the carbon footprint of a lithium battery cell is from
the mining and transport of the lithium raw materials in the battery cell.

 

Major battery cell manufacturers have stated publicly that the best way to
reduce the carbon footprint of battery cell production is to reduce the volume
of raw materials shipped around the world by refining lithium raw materials
prior to shipping.

 

Alkemy has identified Port Hedland as the optimal site for the proposed new
LSM plant for a number of key reasons:

 

·    Proximity to existing and planned spodumene producers in the Pilbara;

·    Well located for the import of spodumene production from other parts
of Australia for conversion to primary LSM prior to export to the UK;

·    Access to critical infrastructure, including skilled labour, road,
power, gas, water and telecommunications;

·    Adjacent to world's largest bulk export port and Australia's largest
container port; and

·    Ability to source renewable energy and energy storage from new
developments planned in the region, delivering the new LSM plant wth low
carbon energy sources.

 

Alkemy has commenced discussions with relevant Western Australian Government
agencies regarding an appropriate site for the planned Port Hedland LSM plant.

 

At this stage, Alkemy expects the plant to be located at a site close to Port
Hedland. To view the map, please click on the following link:

https://www.alkemycapital.co.uk/images/2022/August/Alkemys_plant_location_-_Austalia.png
(https://www.alkemycapital.co.uk/images/2022/August/Alkemys_plant_location_-_Austalia.png)

 

Downstream processing of Australian critical mineral production is a key focus
of the Australian Federal Government and the Western Australian State
Government and Alkemy is very appreciative of the support already expressed by
Government agencies for the Port Hedland LSM plant.

 

Construction of Train 1 of TVL's LHM processing facility at the Wilton
International Chemicals Park in Teesside, UK, the first of 4 trains planned
for the site, is due to commence at the end of this year.

 

Initial production of 24,000 tpa of battery-grade LHM is planned for 2024.
 Once completed, all 4 trains will produce a total of 96,000 tpa LHM,
representing around 15% of Europe's projected demand by 2030.

 

By sourcing low carbon primary LSM from the Port Hedland plant and powering an
electrochemical process with offshore wind, TVL is aiming to supply its
customers in Europe and the UK with the world's lowest-carbon lithium
hydroxide.

 

Alkemy also confirms that 100,000 options have been issued to consultants on
the same terms as set out in the company's RNS dated 4 August.

 

 

Further information

 

For further information, please visit Alkemy's website:
www.alkemycapital.co.uk (http://www.alkemycapital.co.uk) or TVL's website
www.teesvalleylithium.co.uk (http://www.teesvalleylithium.co.uk) .

-Ends-

 

 Alkemy Capital Investments Plc    Tel: 0207 317 0636

 Sam Quinn                         info@alkemycapital.co.uk (mailto:info@alkemycapital.co.uk)

 Buchanan                          Tel: +44 (0)20 7466 5000

 Bobby Morse/Abigail Gilchrist     TVL@buchanan.uk.com (mailto:TVL@buchanan.uk.com)

 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 (mailto:damon.heath@shardcapital.com)

                                   Tel: 0207 186 9927

 Isabella Pierre                   isabella.pierre@shardcapital.com (mailto:isabella.pierre@shardcapital.com)

 

 

 

NOTES TO EDITORS

 

Alkemy is seeking to develop, construct and operate the world's leading
independent and sustainable lithium hydroxide production facility.

 

Alkemy, through its wholly-owned subsidiary Tees Valley Lithium, has secured a
9.6 ha brownfields site at the Wilton International Chemicals Park located in
Teesside, a major UK Freeport.

 

Alkemy has completed a Class 4 Feasibility Study for its proposed lithium
hydroxide facility 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.

 

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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