Another article...ongoing discussions...Canada Lithium aims to restart historic Quebec Lithium operation
Canada Lithium is aiming to resurrect the former Quebec Lithium Mine with the aim of supplying the growing need of Detroit's auto industry for lithium batteries to power hybrid and electric cars.
Author: Dorothy Kosich
Posted: Monday , 30 Aug 2010
RENO, NV -
Toronto-based Canada Lithium is hoping to take the old Quebec Lithium mine near Val-d'Or (Valley of Gold) out of mothballs and eventually achieve average annual production 42.6 million pounds of lithium by late 2012.
The deposit was mined between 1955 and 1965, producing spodumene and lithium carbonate products for such clients as the U.S. government. Quebec Lithium Corp. sued its biggest customer Lithium Corporation of America in 1959 for US $4.5 million for breach of contract. Once the world's largest lithium producer, Lithium Corporation of America is now part of FMC Corp.
As the market for lithium died, operations at Quebec Lithium were suspended.
Now, while other parts of the world, such as Bolivia, may produce lithium more cheaply, Canada Lithium says the Quebec Lithium mine can take advantage of low electricity costs and the 14-hour drive to Detroit, an emerging manufacturing center for electric vehicles and batteries
Canada Lithium says discussions with North American manufacturers indicate a potential market for up to 50,000 tpy of spodumene. The company signed a marketing agreement with Mitsui Corp. in April 2009 related to the distribution of battery-grade lithium carbonate in Japan, China and Korea.
A March 2010 pre-feasibility study by BBA Engineers of Montreal estimated a US$148 million capex to resurrect the mine with a minimum initial mine life of 15 years, which could be eventually expanded to 45 years. The initial open-pit operation would employ 175 full time workers.
A bankable feasibility study of the project is scheduled to be completed in late December.
In July Canada Lithium (TSX: CLQ) announced it had been included in the world's first lithium ETF launched by Global X Funds. As of July the lithium ETF which tracks the Solactive Global Lithium Index, included 20 different companies with 51% of those made up lithium battery manufacturers with the remainder comprised of lithium mining and refining companies. The three largest holdings of the ETF are lithium producers SQM from Chile and the FMC Corporation and Rockwood Holdings, both from the United States.
Canada Lithium CEO Peter Secker aims to have the Quebec Lithium mine become the third or fourth largest battery-grade lithium carbonate producers in the world. "We would be capable of supplying the growing demand for lithium carbonate at a rate of roughly 43 million pounds per annum by late 2012," he said in a news release.
The Quebec Lithium Project consists of 12 contiguous claims covering 404.69 hectares.