European Metals Selects New Site for Cinovec Lithium Processing Plant

Following evaluation and consultation with relevant municipal and regional authorities, European Metals Holdings Ltd. (AIM:EMH, ASX:EMH, OTCQX:EMHLF) has chosen a new site for its Cinovec lithium processing plant. The selected site is the former Prunéřov 1 power station, which was decommissioned in 2020. The site, owned and operated by EMH’s project-level partner, CEZ, is significantly larger than the previous site at Dukla. This larger size will allow for a more efficient and cost-effective processing plant layout, enabling better and faster construction. According to Executive Chairman Keith Coughlan, the decision to relocate the processing plant from Dukla to Prunéřov is expected to have a positive impact on the project’s capital and operating expenses per tonne. This is due to the potential for a faster permitting process and a more efficient plant layout. Coughlan also mentioned that these cost reductions will be reflected in the definitive feasibility study (DFS). The company had previously deferred the DFS due to the need to finalize the new site details and address social and environmental impact sensitivities. Coughlan emphasized that the deferral should be seen as a positive development as it has allowed for a more optimal site selection. He noted that the Prunéřov site’s proximity to the Prunéřov Power Plant will facilitate a more timely permitting process with the support of local, regional, and federal authorities. Coughlan also highlighted the alignment of the project with the European Union’s Critical Raw Materials Act (CRMA). The collaboration between the Cinovec project joint venture partners and the Czech government in the decision-making process provides a strong foundation for the company’s upcoming application for strategic project status under the CRMA. A spokesperson for the project company Geomet emphasized the company’s commitment to coal transformation by building the processing plant in an industrial area further away from populated areas. This approach aims to create employment opportunities for workers affected by the gradual closure of nearby coal mines and power plants. While an ore loading facility will still be constructed at the original Dukla site, the ore will be transported by rail to Prunéřov for processing. The Mayor of Kadaň expressed support for the project and its potential to create local jobs amidst the transition away from coal mining.

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