REG - Alkemy Capital Invs. - MOU on process to unlock major Lithium feedstock

Alkemy Capital InvestmentsAnnouncement

12/05/2023 08:00

For best results when printing this announcement, please click on link below:
http://newsfile.refinitiv.com/getnewsfile/v1/story?guid=urn:newsml:reuters.com:20230512:nRSL1788Za&default-theme=true

RNS Number : 1788Z  Alkemy Capital Investments PLC  12 May 2023

 

12 May 2023

 

Alkemy Capital Investments Plc

 

MOU with lithium technology company to unlock a major new source of lithium
feedstock

 

Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) (JV2:FRA) is pleased to
announce that its wholly-owned subsidiary Port Hedland Lithium Pty Ltd ("PHL")
has executed a Memorandum of Understanding ("MOU") with Lithium Services Pty
Ltd ("LIS"), a world leading lithium engineering and technology company, to
explore the development of a merchant lithium refinery located at Port Hedland
dedicated to the processing of spodumene fines and tailings - a major new
source of lithium feedstock.

 

HIGHLIGHTS

 

·   Australia is the world's largest producer of lithium however many mines
are suffering significant losses during spodumene concentrate production with
up to 45% of the lithium contained being lost to tailings.

 

·    PHL and LIS are looking to develop a merchant lithium refinery at
Port Hedland which, based on a proven fines processing technology, will
provide miners with the opportunity to recover lithium from fines materials
which would otherwise be lost to tailings.

 

·    The refinery, located at the Boodarie Strategic Industrial Area, will
offer spodumene producers a refining solution for lithium tailings and other
fines material with direct access to the premium European battery market.

 

·    The scoping study will proceed in parallel with the engineering and
approvals work currently underway for the first train of the Port Hedland
lithium sulphate refinery.

 

 

Sam Quinn, Director of Alkemy commented:

 

"We are delighted to be working with LIS, a world leading lithium engineering
and technology company, to examine this exciting opportunity to develop new
lithium processing solutions for miners in Australia."

 

"There are major yield losses during spodumene concentrate production, with
significant volumes of lithium units ending up in mine tailings.  This
represents a significant challenge for miners from an economic and
sustainability perspective, and both PHL and LIS believe there is a major
opportunity to provide unique merchant lithium refining solutions for miners
to improve their mine economics, diversify their revenue streams and maximise
the sustainability of their operations."

 

"Working with LIS on the potential to develop a merchant lithium refinery
dedicated to the processing of spodumene fines and tailings will proceed in
conjunction with the engineering and approvals work already underway for train
1 processing standard specification spodumene concentrate at Port Hedland.
Running these two work streams in parallel will provide us with significant
optionality prior to making a final investment decision on the development of
the Port Hedland lithium sulphate refinery."

 

Jeremy Chang, Executive Director of LIS commented:

 

"Together with PHL, we believe that LIS's world class engineering and process
technology that is proven in operation in China can be deployed successfully
to process spodumene fines and other tailings material from lithium mines in
the Pilbara region of Australia."

 

"We look forward to working with PHL to examine this unique opportunity in the
near future with a view to developing a world leading lithium refinery at Port
Hedland that will unlock a major new source of lithium feedstock for PHL."

 

Memorandum of understanding

 

Under the MOU signed between PHL and LIS, the parties have agreed to
immediately commence a scoping study into the development of a merchant
lithium refinery at Port Hedland dedicated to the processing of spodumene
fines and other lithium tailings material to produce primary lithium sulphate.

 

As part of the scoping study, the parties will determine whether or not to
negotiate and enter into a binding engineering, technology and cooperation
agreement under which (amongst other things) LIS will supply lithium
processing technology and engineering services to PHL to enable it to develop
the lithium refinery dedicated to the processing of spodumene tailings.

 

The scoping study is expected to take 90 days and PHL and LIS will undertake
this work in conjunction with the engineering and approvals work currently
underway for train 1 of the Port Hedland lithium sulphate refinery and with
support from PHL's existing engineering and environmental advisors.

 

The existing engineering and approvals work underway is based on the
processing of spodumene concentrate meeting standard grade and size
specifications.

 

Following completion of the scoping study, if PHL and LIS determine that the
opportunity is technically, environmentally and economically viable, the
parties propose to enter into a binding engineering, technology and
cooperation agreement that would provide for the parties to work together to
complete a feasibility study, sign suitable spodumene tailings feedstock
supply agreement(s), finalise the necessary environmental approvals and
proceed to develop the refinery.

 

In the execution phase, PHL agrees to fund 100% of the cost of the necessary
feasibility study, environmental approvals and development of the refinery
(including LIS's consulting costs during those development phases), with LIS
incentivised to deliver a successful refinery development.

 

About LIS

 

LIS is part of a world leading lithium refining engineering and technology
group that has worked with some of the largest lithium mining and refining
companies in the world.

 

LIS is backed by the largest calcining system supplier for lithium salt
production in the world.

 

Lithium tailings

 

In the year ending 30 June 2023, Australia is forecast to export approximately
2.3 million tonnes of spodumene concentrate.

 

Based on published ore reserve yield losses during spodumene concentrate
production, there is a significant volume of lithium units potentially
available as feedstock for a refinery dedicated to the processing of lithium
fines and tailings. This yield loss is between 15% and up to 45% of lithium
ore reserves, with the lithium units ending up in mine tailings facilities.

 

If PHL and LIS are successful in developing a merchant lithium refinery
dedicated to the processing of spodumene fines and tailings feedstock, this
will unlock a major new source of lithium feedstock and improve the overall
sustainability of lithium mining.

 

PHL has already secured appropriate spodumene fines and tailings feedstock
samples for the test work to be undertaken during the scoping study work with
LIS.

 

Through both the Port Hedland lithium sulphate refinery and the lithium
hydroxide refinery being developed by Tees Valley Lithium at Teesside in the
UK, the company is poised to have the capacity to process lithium units to
produce lithium hydroxide for the premium European lithium market with the
world's lowest embedded carbon. Further information

 

For further information, please visit Alkemy's website:
www.alkemycapital.co.uk (about%3Ablank) or TVL's website
www.teesvalleylithium.co.uk (about%3Ablank) .

 

-ends-

 

 

 Alkemy Capital Investments Plc    Tel: 0207 317 0636

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

 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 establish the world's leading independent and sustainable
lithium hydroxide production by developing state-of-the-art lithium sulphate
and lithium hydroxide facilities in Australia and the UK.

 

Alkemy, through its wholly-owned subsidiary Tees Valley Lithium, has secured a
9.6 ha brownfields site with full planning permission at the Wilton
International Chemicals Park in Teesside, a major UK Freeport, to build the
UK's first and Europe's largest lithium hydroxide processing facility.

 

Tees Valley Lithium has completed a Class 4 Feasibility Study for its proposed
lithium hydroxide refinery 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.

 

Alkemy has also secured a 43 ha site near Port Hedland, Western Australia to
build a world-class sustainable lithium sulphate refinery that will provide
reliable feedstock for Tees Valley Lithium.

 

 

 

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.

This information is provided by RNS, the news service of the London Stock Exchange. RNS is approved by the Financial Conduct Authority to act as a Primary Information Provider in the United Kingdom. Terms and conditions relating to the use and distribution of this information may apply. For further information, please contact
rns@lseg.com (mailto:rns@lseg.com)
 or visit
www.rns.com (http://www.rns.com/)
.

RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our
Privacy Policy (https://www.lseg.com/privacy-and-cookie-policy)
.   END  UPDGPUQPAUPWPUG