TORONTO (miningweekly.com) – Lithium project developer Nemaska Lithium has decided to build its Phase 1 plant and future commercial Hydromet plant in Shawinigan, Quebec, after signing an agreement in principle with local authorities for the partial acquisition of land and existing manufacturing facilities in the city.

"The decision to locate our Hydromet plant facilities in Shawinigan was easy given the quality of the buildings available and possible synergies with local stakeholders, including the National Centre for Electrochemistry and Environmental Technologies with which we are already working,” Nemaska president and CEO Guy Bourassa stated.

Nemaska had originally planned to build its Phase 1 plant and Hydromet plant in Salaberry-de-Valleyfield; however, the reduced construction time of both plants because of the use of existing buildings in Shawinigan could significantly reduce capital costs.

Other factors that had influenced the company’s decision to relocate its plant site included the existing and ready-to-use infrastructure required for the operation, including natural gas, electric power station and railway, and the fact that Shawinigan was closer to the company's Whabouchi mine site, thereby reducing concentrate transportation costs.

The agreement in principle provided that Nemaska would become the owner of the industrial property from January 1, 2016; however, Nemaska would have the right to occupy and use the buildings required for the Phase 1 plant from October 1.

Nemaska was developing one of the richest spodumene lithium hard-rock deposits in the world, both in volume and grade. Spodumene concentrate produced at Nemaska's Whabouchi mine would be shipped to the company's lithium hydroxide/carbonate processing plant, which would transform spodumene concentrate into high-purity lithium hydroxide and lithium carbonate for the growing lithium battery market.

The Whabouchi deposit, in the James Bay region, near the Cree community of Nemaska, was expected to have an initial mine life of 18 years.

Nemaska last week reported that it had received the general certificate of authorisation for Whabouchi from the Quebec Ministry of Sustainable Development, Environment and The Fight Against Climate Change, while the federal environment minister in July issued a positive federal environmental assessment decision for the project.

“We will be building lithium mining expertise in the Eeyou Istchee James Bay region and its conversion into high-purity lithium compounds in Shawinigan. This, coupled with the activities of other companies, is quickly making Quebec a centre of excellence for the lithium battery industry and we are very proud to be part of that growth in the burgeoning high-tech sector,” Bourassa noted.