Quebec Lithium Mine started production last weekThe lithium mine adjacent to FMR's Rome Lithium property started production last week.
https://www.lesaffaires.com/secteurs-d-activite/ressources-naturelles/lithium-amerique-du-nord-demarre-officiellement-ses-operations/595329
Translated:
Abitibi mine restarts with electric cars
Published on 01/06/2017 at 11:27 , updated on the 01/06/2017 with 12:34
BY FRANOIS NORMAND
The Lithium North America mine in La Corne, Abitibi-Tmiscamingue, officially opens its operations on Friday, June 2, with the commissioning of its spodumene concentrator (a lithium mineral).
"We're going to sell the spodumene concentrate in Asia," says Yves Desrosiers, general manager of the mine. This will be our source of revenue until the commissioning of the refining plant which will produce lithium carbonate from the second half of 2018. "
The spodumene concentrate is used to produce lithium carbonate, an essential element in the manufacture of electronic equipment or electric batteries.
Activities on the site at La Corne (previously owned by Qubec lithium) began on March 3 with the release of the resource, which is being converted to spodumene concentrate this Friday.
The former Quebec lithium mine had ceased operations in 2014 due to financial difficulties. However, last year, Chinese investors - Jien International - bought the mine in partnership with Investissement Qubec .
The Chinese group owns 75% of the capital, while the state owned 25%.
The company does not exclude an IPO
The revival of the mine is estimated at C $ 200 million: $ 75 million for the spodumene concentrator and $ 125 million for the lithium carbonate plant.
However, the funding is not completed, says Yves Desrosiers.
Current shareholders could invest, as would new private shareholders. "We could even go public," he says, insisting that all the options are on the table.
In Asia, Lithium North America will sell its spodumene concentrate to lithium carbonate producers located in China, Japan and South Korea. Currently, 94% of world production is concentrated in these three countries.
But starting in the second half of 2018, Lithium North America itself can produce lithium carbonate. "We're going to do the same thing as the Asian factories. They will be sold less spodumene, "says Yves Desrosiers.
Lithium North America will also sell its lithium carbonate in Asia.
At its cruising speed, the mine at La Corne will produce about 180000 tonnes of ores per year, producing 23,000 to 24,000 tonnes of lithium carbonate.
Very favorable market conditions
The stars are aligned for the revival of this mine, according to Yves Desrosiers.
Lithium prices are high in world markets.
The global demand for lithium is very strong, especially due to the boom of electric cars.
And the weakness of the Canadian dollar against the US currency makes Lithium North America's exports more competitive as the resource is traded in US dollars on international markets.
The main business risk for Lithium North America would be a strong slowdown in the world economy, according to Yves Desrosiers. If so, the contraction in GDP would reduce the demand for lithium in the world as well as the price of this strategic resource.
Despite this, the company believes it has an important cushion before a potential price reduction affects the profitability of the mine. "At two-thirds of the current price, we are still profitable," says Yves Desrosiers.
Currently, the mine at La Corne has a lifespan of 15 years.
But as of this autonomous, Lithium North America will do other drilling. And if the results are conclusive, the company could extend its duration by another five years.