Just a month post its debut on the Australian Stock Exchange, Lithium Universe (ASX: LU7) has thrown the spotlight on its ambitious plan: the creation of a vertically-integrated lithium processing hub right in the heart of Canada.
Strategising for Collaborative Growth
The company’s strategy is clear – foster collaboration among lithium junior exploration companies, specifically in the James Bay region of Québec. The endgame? To elevate Canada’s status as a leading lithium supplier to cater to the ever-growing global demand.
Québec Lithium Processing Hub: The Blueprint
Delving into the specifics, the envisaged Québec Lithium Processing Hub (QLPH) stands out. It’s designed to incorporate a robust 1 million tonnes per annum concentrator. This multi-purpose entity will specialize in processing general run-of-mine (ROM) spodumene ore.
This concentrate then becomes the primary input for the adjacent battery-grade lithium carbonate refinery. Once fully operational, the refinery is projected to hit a production rate of 16,000tpa. Its design foundation? The Jiangsu lithium carbonate plant in China, boasting a capacity of 17,000tpa.
In addition to these facilities, the hub aims to incorporate a state-of-the-art four-stage crushing and dense media separation plant. For those familiar with the Mt Cattlin spodumene project, it’s a reminiscent flow sheet. Under the Galaxy Resources, which is no longer in business, this project produced an impressive 137,000tpa of product.
Regional Collaborations and Long-Term Contracts
Lithium Universe’s business model also includes considering long-term ROM offtake contracts with its regional lithium junior partners. This not only promises an assured ore feed for the concentrator but is also an avenue to initiate early cash inflows for these junior players. This dual benefit facilitates the rapid development of their mining projects.
As for pricing? It’s set to hinge on the lithium content of the ROM ore, presenting potential high returns for involved firms.
The Need for Expertise and Resources
The voice of Lithium Universe chairman, Iggy Tan, rings clear. He opines that Canada’s junior companies, in many cases, might lack the depth of experience and specialized skills required for an all-encompassing project like QLPH.
“A holistic approach demands more than just mining lithium deposits. The challenge lies in constructing and successfully running downstream facilities,” emphasized Tan. He further added, “Sourcing such expansive skill sets within one company is often an uphill task.”
The “Lithium Dream Team”
No stranger to the lithium-ion battery sector, Tan was among the pioneering Australian mining executives who eyed its potential two decades ago. Back then, he was the driving force behind Galaxy Resources.
His present endeavor has him rallying a “lithium dream team” – the same experts behind successful projects like Mt Cattlin, Jiangsu, James Bay, and Sal de Vida in Argentina.
Noteworthy mentions include Patrick Scallan, known for his management of the globally acclaimed Greenbushes mine, and Terry Stark, a key player for the Mt Cattlin and James Bay projects. The team also boasts of seasoned professionals like Roger Pover, Huy Nguyen, Dr. Jingyuan Liu, and John Loxton.
With such collective expertise, Tan confidently states, “Our team’s unparalleled skill set in spodumene hard rock processing and lithium carbonate production ensures we can quickly bring our vision to fruition.”
Furthermore, he adds, “This venture doesn’t just add value to Lithium Universe; it aligns seamlessly with Canada’s vision of a fortified lithium industry powered by a resilient domestic supply chain.”
In summary, with a promising plan, expert team, and a strategic location, Lithium Universe appears set to make a significant mark on the global lithium industry. Only time will tell if this ambitious endeavor reshapes the lithium landscape of Canada and beyond.
