TIDMEMH
RNS Number : 4259B
European Metals Holdings Limited
10 June 2021
For immediate release
10 June 2021
EUROPEAN METALS HOLDINGS LIMITED
LITHIUM LIFE CYCLE ASSESSMENT SPECIALIST ENGAGED
HIGHLIGHTS
-- UK-based and globally recognised sustainability and life
cycle assessment consultancy, Minviro, engaged to provide an ISO
compliant life cycle assessment ("LCA") of the Cinovec lithium /
tin project.
-- Cinovec LCAs to be produced for both battery-grade lithium
carbonate and battery-grade lithium hydroxide monohydrate which
will be manufactured at a lithium chemical plant nearby to the
Cinovec mine.
-- Cinovec LCAs will be benchmarked against global lithium peers.
-- Minviro will be actively engaged to identify low-carbon
optimisations in the developing feasibility study for Cinovec.
-- Cinovec LCAs expected to demonstrate strong carbon footprint
credentials with lower energy use, less intensive reagent
application and net carbon credits from mine and process
by-products.
-- LCA Report anticipated to be completed and provided to the Company in Q3 2021.
European Metals Holdings Limited (ASX & AIM: EMH, NASDAQ:
ERPNF) ("EMH", "European Metals" or the "Company") is pleased to
announce the engagement of Minviro, a UK-based and globally
recognised sustainability and life cycle assessment consultancy, to
provide an ISO compliant life cycle assessment ("LCA"), including a
carbon footprint evaluation, of the Cinovec lithium / tin project
in the Czech Republic.
Life Cycle Assessment is a widely accepted and robust numerical
method used to quantify climate change and other environmental
impacts for industrial processes, while identifying opportunities
for impact reduction and process improvement. The ISO-compliant and
third-party reviewed Life Cycle Assessment (LCA) Report is
anticipated to be completed and provided to the Company in Quarter
3 2021.
European Metals Executive Chairman Keith Coughlan said:
"As we transition towards climate neutrality and a more
sustainable society, it is important to ensure this transition is
done in a sustainable way by minimizing the carbon footprint across
the full battery value chain, from raw materials to finished
batteries. European Metals has a unique competitive advantage based
on minimizing the carbon footprint of the production of our battery
grade Lithium products. We are looking forward to the results of
the life cycle analysis as a testament to how a locally sourced
sustainable battery grade material supply for the European battery
industry will look.
Minviro Founder & Director Dr Robert Pell further states
:
"Lithium production has a legacy of social and environmental
impacts. As Lithium demand grows in line with renewable energy and
EV uptake, it is important that steps are taken to measure and
mitigate the environmental impact of producing these essential
elements. Delivery of an LCA is a central part of this process for
the battery and EV industries as it provides customers with the
necessary data to measure their impact, compare process or supplier
scenarios and optimize the environmental performance of
projects."
LOW CARBON LITHIUM FROM CINOVEC
Geomet s.r.o. ("Geomet"), the jointly CEZ/EMH-owned Cinovec
project company, is committed to delivering a low carbon footprint,
high quality lithium product for cathode and battery manufacturers.
The work that will be conducted by Minviro will help Geomet
understand how to best achieve this and how the Cinovec project
compares against hard-rock [and brine] lithium peers.
The International Organisation for Standardisation ("ISO") has a
set of standards published on Life Cycle Assessment ("LCA") (ISO
14040 and 14044). The standards outline the best practice
requirements and principles to be undertaken for a LCA study. ISO
compliance includes a third-party review by an independent panel of
experts. The results are then allowed to be disclosed publicly and
used for comparison with different primary production methods of
raw materials.
This will provide the Cinovec project with an
independently-verified carbon assessment that is recognised by
financiers and potential off-takers.
ABOUT MINVIRO
Minviro (www.minviro.com) is a London based and globally
recognized consultancy and technology company specialised in
carrying out life cycle assessments in the technology metal space.
The company provides quantitative environmental and climate impact
data for mineral resource projects, battery manufacturers and OEMs
to make environmentally informed decisions.
Minviro Ltd has recently completed, or are engaged for LCA
assessments, for various processes and products being developed in
the battery raw materials markets. Minviro will use data generated
from the pre-feasibility study of the Cinovec Project. The LCA
includes a cradle-to-gate life cycle inventory and life cycle
impact assessment for five impact categories including carbon
footprint, alongside recommended impact mitigation opportunities.
The results will be delivered to the Company in the form of an
ISO-compliant and third-party reviewed Life Cycle Assessment (LCA)
Report.
WEBSITE
A copy of this announcement is available from the Company's
website at www.europeanmet.com.
AUTHORISATION
The Board of Directors of European Metals Holdings authorised
this announcement to be given to ASX.
ENQUIRIES:
European Metals Holdings Limited
Keith Coughlan, Executive Chairman Tel: +61 (0) 419 996 333
Email: keith@europeanmet.com
Kiran Morzaria, Non-Executive Director Tel: +44 (0) 20 7440 0647
Dennis Wilkins, Company Secretary Tel: +61 (0) 417 945 049
Email: dennis@europeanmet.com
WH Ireland Ltd (Nomad & Joint Broker)
James Joyce/James Sinclair-Ford Tel: +44 (0) 20 7220 1666
(Corporate Finance)
Harry Ansell/Jasper Berry (Broking
Shard Capital (Joint Broker) Tel: +44 (0) 20 7186 9950
Damon Heath
Erik Woolgar
Blytheweigh (Financial PR) Tel: +44 (0) 20 7138 3222
Tim Blythe
Megan Ray
Chapter 1 Advisors (Financial PR
- Aus) Tel: +61 (0) 433 112 936
David Tasker
The information contained within this announcement is considered
to be inside information, for the purposes of Article 7 of EU
Regulation 596/2014, prior to its release. The person who
authorised for the release of this announcement on behalf of the
Company was Keith Coughlan, Executive Chairman .
BACKGROUND INFORMATION ON CINOVEC
PROJECT OVERVIEW
Cinovec Lithium/Tin Project
Geomet s.r.o. controls the mineral exploration licenses awarded
by the Czech State over the Cinovec Lithium/Tin Project. Geomet
s.r.o. is owned 49% by European Metals and 51% by CEZ a.s. through
its wholly owned subsidiary, SDAS. Cinovec hosts a globally
significant hard rock lithium deposit with a total Indicated
Mineral Resource of 372.4Mt at 0.45% Li2O and 0.04% Sn and an
Inferred Mineral Resource of 323.5Mt at 0.39% Li2O and 0.04% Sn
containing a combined 7.22 million tonnes Lithium Carbonate
Equivalent and 263kt of tin reported 28 November 2017 (Further
Increase in Indicated Resource at Cinovec South). An initial
Probable Ore Reserve of 34.5Mt at 0.65% Li2O and 0.09% Sn reported
4 July 2017 (Cinovec Maiden Ore Reserve - Further Information) has
been declared to cover the first 20 years mining at an output of
22,500tpa of lithium carbonate reported 11 July 2018 (Cinovec
Production Modelled to Increase to 22,500tpa of Lithium
Carbonate).
This makes Cinovec the largest hard rock lithium deposit in
Europe, the fourth largest non-brine deposit in the world and a
globally significant tin resource.
The deposit has previously had over 400,000 tonnes of ore mined
as a trial sub-level open stope underground mining operation.
In June 2019 EMH completed an updated Preliminary Feasibility
Study, conducted by specialist independent consultants, which
indicated a return post tax NPV of USD1.108B and an IRR of 28.8%
and confirmed that the Cinovec Project is a potential low operating
cost, producer of battery grade lithium hydroxide or battery grade
lithium carbonate as markets demand. It confirmed the deposit is
amenable to bulk underground mining. Metallurgical test-work has
produced both battery grade lithium hydroxide and battery grade
lithium carbonate in addition to high-grade tin concentrate at
excellent recoveries. Cinovec is centrally located for European
end-users and is well serviced by infrastructure, with a sealed
road adjacent to the deposit, rail lines located 5 km north and 8
km south of the deposit and an active 22 kV transmission line
running to the historic mine. As the deposit lies in an active
mining region, it has strong community support.
The economic viability of Cinovec has been enhanced by the
recent strong increase in demand for lithium globally, and within
Europe specifically.
There are no other material changes to the original information
and all the material assumptions continue to apply to the
forecasts.
BACKGROUND INFORMATION ON CEZ
Headquartered in the Czech Republic, CEZ a.s. is an established,
integrated energy group with operations in a number of Central and
Southeastern European countries and Turkey. CEZ's core business is
the generation, distribution, trade in, and sales of electricity
and heat, trade in and sales of natural gas, and coal extraction.
CEZ Group has 33,000 employees and annual revenue of approximately
EUR 7.24 billion.
The largest shareholder of its parent company, CEZ a.s., is the
Czech Republic with a stake of approximately 70%. The shares of CEZ
a.s. are traded on the Prague and Warsaw stock exchanges and
included in the PX and WIG-CEE exchange indices. CEZ's market
capitalization is approximately EUR 10.08 billion.
As one of the leading Central European power companies, CEZ
intends to develop several projects in areas of energy storage and
battery manufacturing in the Czech Republic and in Central
Europe.
CEZ is also a market leader for E-mobility in the region and has
installed and operates a network of EV charging stations throughout
Czech Republic. The automotive industry in Czech is a significant
contributor to GDP and the number of EV's in the country is
expected to grow significantly in coming years.
CONTACT
For further information on this update or the Company generally,
please visit our website at www.europeanmet.com or see full contact
details at the end of this release.
CAUTION REGARDING FORWARD LOOKING STATEMENTS
Information included in this release constitutes forward-looking
statements. Often, but not always, forward looking statements can
generally be identified by the use of forward looking words such as
"may", "will", "expect", "intend", "plan", "estimate",
"anticipate", "continue", and "guidance", or other similar words
and may include, without limitation, statements regarding plans,
strategies and objectives of management, anticipated production or
construction commencement dates and expected costs or production
outputs.
Forward looking statements inherently involve known and unknown
risks, uncertainties and other factors that may cause the company's
actual results, performance and achievements to differ materially
from any future results, performance or achievements. Relevant
factors may include, but are not limited to, changes in commodity
prices, foreign exchange fluctuations and general economic
conditions, increased costs and demand for production inputs, the
speculative nature of exploration and project development,
including the risks of obtaining necessary licences and permits and
diminishing quantities or grades of reserves, political and social
risks, changes to the regulatory framework within which the company
operates or may in the future operate, environmental conditions
including extreme weather conditions, recruitment and retention of
personnel, industrial relations issues and litigation.
Forward looking statements are based on the company and its
management's good faith assumptions relating to the financial,
market, regulatory and other relevant environments that will exist
and affect the company's business and operations in the future. The
company does not give any assurance that the assumptions on which
forward looking statements are based will prove to be correct, or
that the company's business or operations will not be affected in
any material manner by these or other factors not foreseen or
foreseeable by the company or management or beyond the company's
control.
Although the company attempts and has attempted to identify
factors that would cause actual actions, events or results to
differ materially from those disclosed in forward looking
statements, there may be other factors that could cause actual
results, performance, achievements or events not to be as
anticipated, estimated or intended, and many events are beyond the
reasonable control of the company. Accordingly, readers are
cautioned not to place undue reliance on forward looking
statements. Forward looking statements in these materials speak
only at the date of issue. Subject to any continuing obligations
under applicable law or any relevant stock exchange listing rules,
in providing this information the company does not undertake any
obligation to publicly update or revise any of the forward looking
statements or to advise of any change in events, conditions or
circumstances on which any such statement is based.
LITHIUM CLASSIFICATION AND CONVERSION FACTORS
Lithium grades are normally presented in percentages or parts
per million (ppm). Grades of deposits are also expressed as lithium
compounds in percentages, for example as a percent lithium oxide
(Li2O) content or percent lithium carbonate (Li2CO3) content.
Lithium carbonate equivalent ("LCE") is the industry standard
terminology for, and is equivalent to, Li2CO3. Use of LCE is to
provide data comparable with industry reports and is the total
equivalent amount of lithium carbonate, assuming the lithium
content in the deposit is converted to lithium carbonate, using the
conversion rates in the table included below to get an equivalent
Li2CO3 value in percent. Use of LCE assumes 100% recovery and no
process losses in the extraction of Li2CO3 from the deposit.
Lithium resources and reserves are usually presented in tonnes
of LCE or Li.
The standard conversion factors are set out in the table
below:
Table: Conversion Factors for Lithium Compounds and Minerals
Convert Convert Convert
from Convert to to
Convert to Li(2) LiOH.H(
to Li Li(2) O CO(3) 2) O
Lithium Li 1.000 2.153 5.325 6.048
----------------- ------------------ ------------------ ------------------ ------------------
Lithium Li(2)
Oxide O 0.464 1.000 2.473 2.809
----------------- ------------------ ------------------ ------------------ ------------------
Lithium Li(2)
Carbonate CO(3) 0.188 0.404 1.000 1.136
----------------- ------------------ ------------------ ------------------ ------------------
LiOH.
Lithium H(2)
Hydroxide O 0.165 0.356 0.880 1.000
----------------- ------------------ ------------------ ------------------ ------------------
Lithium
Fluoride LiF 0.268 0.576 1.424 1.618
----------------- ------------------ ------------------ ------------------ ------------------
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