In a segment addressing the demand of lithium carbonate that stems from the growing lithium-ion battery market, BTV featured Canadian company Critical Elements (TSXV:CRE, OTCQX:CRECF, FWB:F12).
In a segment addressing the demand of lithium carbonate that stems from the growing lithium-ion battery market, BTV featured Canadian company Critical Elements (TSXV:CRE, OTCQX:CRECF, FWB:F12). During the video segment, the company’s president, Steffen Haber, provided insight into the Critical Elements’ focus on advancing its flagship Rose spodumene project in Northern Quebec to production.
Measuring 800 square kilometers, the Rose project is situated nearby an electrical power line as well as a large road. Any material produced from the project could be easily transported via roads and rail to an international port. During the interview, Haber indicated that there are many benefits to being located in Canada, including the fact that the company has been able to move swiftly through permitting.
The company has established a low-risk, two-stage production plan for the project. The first stage will include the build of a spodumene mine and spodumene concentrate plant. Spodumene concentrate is a key material for the glass and ceramics industries. “With that cash flow, we are intending to move into stage two, to build a conversion plant here in Canada which then would produce either lithium carbonate or lithium hydroxide depending on the overall first evolution of the market,” Haber said.
The feasibility study on the project has indicated positive economics including an after-tax NPV of C$725 million and an after-tax IRR of 35 percent, with a mine life of 17 years. According to Haber, the recovery rates for the project have also shown to be 15 percent above industry average.
Currently, Critical Elements is considering strategic partners to “combine a long-term agreement by selling spodumene, lithium carbonate or lithium hydroxide with an investment, which [they] need in order to put Rose into production.”
To read the full interview, click here.