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Lithium hydroxide a viable option at San Jose

29th November 2018

By: Esmarie Iannucci

Creamer Media Senior Deputy Editor: Australasia

     

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PERTH (miningweekly.com) – A scoping study into the San Jose lithium hydroxide project has estimated that ASX-listed Infinity Lithium would have to invest $228-million to develop the Spanish project.

Infinity had previously completed a scoping study on a lithium carbonate project, which demonstrated the potential for a robust lithium chemicals development project.

However, Infinity took the decision to shift focus from a lithium carbonate project towards lithium hydroxide output, which was consistent with the evolving battery market, supporting the fact that lithium hydroxide is a higher value battery chemical product.

The scoping study into the lithium hydroxide project estimated an annual production of 14 000 t to 15 000 t, over a project life of 24 years. Based on that, the project is estimated to have a post-tax net present value of $631-million, based on a lithium hydroxide price of $14 896/t, and an internal rate of return of 37%.

The project is expected to generate some $5.1-billion in revenues and over $126-million in free cash flow.

Infinity MD Ryan Parkin said that the company has been able to capitalise on evolving market conditions, with the scoping study clearly demonstrating the significant advantage in the production of a higher value lithium chemical end product.

“The evolution of cathode technologies used in higher density lithium-ion batteries has seen greater opportunities to capitalise on burgeoning electric vehicle demand for battery grade lithium chemicals, and in particular leaves Infinity well placed to alleviate geographical supply-side risk of European cathode and battery producers.

Parkin said that the scoping study demonstrated that the long-life San Jose project has suitable production scale capable of providing a materially significant option for cathode producers to diversify within Europe, while the long mine and processing life aligned to many European nations’ targeted reduction in emissions and phase-out of internal combustion engine vehicles.

With the lithium hydroxide scoping study now complete, Infinity, along with its joint venture partners, is now hoping to progress technical work towards the completion of a prefeasibility study and the delivery of a feasibility study within 12 of 18 months thereafter.

Edited by Creamer Media Reporter

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