European Metals Holdings (ASX: EMH) has confirmed a new site has been selectec for the Cinovec Lithium Processing Plant in the Czech Republic which is anticipated to provide improved permitting and project economics.
The new site selection follows evaluation and preliminary agreement between project company Geomet and the relevant municipal and regional governments to move the lithium processing plant from Dukla to the Prunéřov industrial site.
Prunéřov is the site of the former Prunéřov 1 Power Station, which was decommissioned in 2020 and Prunéřov 2 Power Station. The site is owned and operated by CEZ, the company’s project level partner.
The site, currently zoned for industrial use, is considerably larger in size than the Dukla site and should enable the processing plant to be laid out in a more effective (and anticipated less costly) manner, enabling better and faster constructability.
The ore from the underground mining operation at Cinovec will be carried by conveyor to Dukla where it will be loaded onto trains for transport to Prunéřov, a distance of approximately 59 km using existing rail facilities, the capacity of which has been confirmed.
During the DFS process, it became apparent that after considerable consultation with local stakeholders and the municipal and regional governments the Dukla site possessed limited capacity and also limited support from the surrounding municipalities.
The Prunéřov industrial site is located alongside the 750MW Prunéřov 2 Coal fired power plant and is situated further away from inhabited areas.
“While providing a good outcome for the surrounding communities, the decision to move the lithium processing plant from the Dukla to the Prunéřov site is expected to have a positive outcome on the capex and opex per tonne of the project due to the possibility of quicker permitting process and more effective layout of the processing plant,” Keith Coughlan, Executive Chairman, said.
“We understand that a deferral to a DFS is usually considered a negative matter, but in this case, we consider it to be for a positive result, particularly as the Prunéřov site is currently home to the Prunéřov Power Plant, and the permitting can now be advanced in a more timely manner with the cooperation of the local, regional and federal governments.
“What has been clear in this process is the importance placed on this project by the community and Czech Government at all levels. In the European Union’s Critical Raw Materials Act (CRMA) environment, the coming together of both the Cinovec project joint venture partners and the Czech Government in the decision-making process with regards of the selection of the Prunéřov site provide a very strong foundation for our upcoming application for Strategic Project status under the CRMA.”