Lithium Universe identifies optimal location for new lithium processing hub
Lithium Universe (ASX: LU7) has completed a location study for a proposed 16,000 tonnes per annum battery-grade lithium carbonate refinery, which will become an integral part of the Québec Lithium Processing Hub (QLPH) in Canada’s James Bay region.
The company appointed engineering firm Hatch to carry out the comprehensive study, which involved more than 20 municipalities to discuss potential locations in the Québec region.
Selection criteria included the availability of flat land; logistics capabilities (such as access to rail, road and port); and workforce availability for construction, operation and maintenance stages.
It also considered First Nations interests and the availability of essential services (such as natural gas, high-voltage electricity and water) as well as wetlands and soil capacity and waste management.
Optimal site
The study identified the 70 square kilometre Bécancour Industrial Park between Québec City and Montreal as the optimal site.
The park provides world-class facilities and state-of-the-art infrastructure for the establishment of companies in the industrial sector.
Lithium Universe has since initiated discussions with the Société du parc industriel et portuaire de Bécancour development authority.
Valuable exercise
Chairman Iggy Tan said the location study had been a valuable exercise to help select the refinery’s location.
“Establishing a sophisticated chemical refinery in the James Bay region is not a viable premise [and] this study has guided our decision-making process and led us to focus on a suitable location,” he said.
“We can transport the spodumene concentrate to a regional facility such as the Bécancour Industrial Park, where it can be converted into battery-grade lithium carbonate… our team has initiated talks with the park authorities to explore the options.”
Lithium hub
In September, Lithium Universe announced plans for a vertically-integrated lithium processing hub which would position Canada as a major supplier of lithium to the global market.
The company said it would consider entering long-term offtake ROM (run-of-mine) contracts with regional junior partners to supply ore feed for the concentrator.
The strategy is expected to generate early cash flow for junior companies and facilitate the development of their own mining projects.