Preliminary results indicate ‘highly competitive’ capital cost for Ontario lithium converter plant
TSX-V-listed Rock Tech Lithium has announced preliminary results from the ongoing definitive feasibility study (DFS) for its Red Rock converter, in Ontario, Canada.
The company reports that the preliminary DFS results indicate total capital costs of C$596-million, comprising C$546-million of direct capital costs and C$50-million of owner's costs, with a tolerance of about 20%. The study is based on a production capacity of about 30 000 t/y of lithium salts.
"The preliminary DFS results are an important decision-making milestone for investing in a modern and scalable lithium production platform in Ontario. They underline that the Red Rock converter can be built at a highly competitive capital cost – a level not yet achieved within the Western lithium supply chain,” says Rock Tech CEO Mirco Wojnarowicz.
The DFS is being conducted by China CEC Engineering Corporation (CEC), an international engineering, procurement and construction engineering service provider with expertise in lithium conversion.
Rock Tech explains that CEC has extensive experience in the development and construction of battery materials plants with a combined yearly production capacity of more than two-million tonnes of battery salts.
For localisation of the project, CEC will be working with established Canadian partners.
Rock Tech says the DFS remains ongoing and is expected to be completed by the end of this year.
The results of the final DFS are expected to provide further details on capital and operating costs, project economics, technical parameters, implementation schedule and financing structure.
The preliminary DFS results announced today remain subject to the final DFS results and further engineering, technical and financial validation by CEC. Subject to the final DFS results and receipt of the required project approvals, construction is currently expected to begin in the second half of 2027.
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