Breaking News
0
Ad-Free Version. Upgrade your Investing.com experience. Save up to 40% More details

Europe's largest lithium project could be up and running mid-2022 - EMH

Stock MarketsJul 22, 2019 10:31
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. Europe's largest lithium project could be up and running mid-2022 - EMH

LONDON (Reuters) - European Metals Holdings (L:EMHE) could begin operations at its Cinovec lithium project in the Czech Republic by mid-2022, and is holding preliminary discussions with potential customers, it said on Monday.

Czech utility CEZ (PR:CEZP), in which the state holds a 70% share, last week said it had conditionally agreed to provide 2 million euros (1.8 million pounds) through a convertible loan to EMH which paves the way for it to become one of EMH's largest shareholders.

European Metals, listed in London and Australia, controls the exploration licences to the Cinovec lithium/tin project in the Czech Republic, which it describes as Europe's largest lithium deposit.

It could help CEZ shift to renewable energy and supply Europe's electric car industry.

"It's very big, it's low-cost, it's surrounded by carmakers and battery makers and it's in the EU, where there is a very strong political push to develop the battery industry," Keith Coughlan, managing director at European Metals, said in an interview.

The company's shares have risen nearly 50% this year.

Coughlan said the site also offers tin but at current tin prices, it's not economic, just a useful byproduct.

The CEZ loan is only a small part of the total capital expenditure of $480 million, but Coughlan said it was a commitment that inspired confidence while CEZ carries out due diligence on the project.

CEZ can convert the principal to shares at any point before the loan's expiry at the end of the year. Czech Prime Minister Andrej Babis has supported the deal if analysis shows mining the project would be promising.

European Metals is working on a definitive feasibility study and says it could begin project construction, which is expected to take two years, in mid-2020.

The CEZ loan would make it easier to talk to other financiers, Coughlan said, adding he had held preliminary discussions with buyers, including carmakers and battery producers. All are European, although some are units of companies with headquarters beyond Europe, he said.

The European Union, keen to shorten its supply chains, is focusing on strategic minerals and developing supplies for its electric vehicle industry.

Europe's largest lithium project could be up and running mid-2022 - EMH
 

Related Articles

Wall Street pulls back on weak jobs data
Wall Street pulls back on weak jobs data By Reuters - Aug 04, 2021 1

By Lawrence Delevingne BOSTON (Reuters) -Wall Street started Wednesday in a pessimistic mood after data showed that U.S. jobs growth slowed in July, helping pull stocks and oil...

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email