LU7 close to cost estimate for Canadian lithium refinery

Lithium Universe on track for CAPEX estimate at Bécancour lithium carbonate refinery in Canada.

Lithium Universe says its innovative lithium carbonate plant would build lithium conversion capacity alongside spodumene mines. Pic: via Getty Images.

• Lithium Universe looks to build CAPEX estimate for Canadian refinery

• 16,000tpa Bécancour lithium carbonate refinery is part of Québec processing hub

• Company progressing engineering milestones and plant layout

 

Special Report:Lithium Universe says it’s on track for the development of its 16,000tpa Bécancour lithium carbonate refinery in Canada, with a capex estimate on the horizon.

The company is seeking to establish itself as a prominent lithium project builder and is developing the proposed Bécancour refinery as part of its Québec Lithium Processing Hub, which will also operate an independent 1Mtpa concentrator.

To be located at the Bécancour Waterfront Industrial Park, the plan for the hub is to capture feedstock from the burgeoning James Bay lithium district, an emerging Tier-1 domain endowed with more than 500Mt of economic lithium resources to date.

Key engineering milestones achieved to date include finalising the plant layout, issuing technical specifications for capex estimation, and progressing with supplier quotation activities.

Gearing up for a capex estimate

Procurement activities underway include sending technical specifications to suppliers for detailed quotations to build the capex estimate.

For priority one mechanical equipment, nine packages have been issued, with seven offers received and evaluations currently underway.

In addition, the first release of the plant layout has been published, with several features still under development.

Overall, the project is adhering to its timeline, with significant progress in engineering and procurement, ensuring readiness for a capital cost estimate.

“The project is on track, finalising plant layout, issuing capex specs, progressing supplier quotes, with smooth office transition, and no environmental issues, ensuring readiness for capex cost estimate,” Lithium Universe (ASX:LU7) chairman Iggy Tan said.

“We look forward to advancing the company’s Bécancour lithium refinery to contribute in making Québec the lithium conversion centre within the Transatlantic region.”

Lithium Universe Bécancour lithium refinery layout. Pic: LU7

Support from all levels of government

Last month, LU7’s leadership team travelled to Canada, receiving a warm welcome and strong engagement from federal, provincial and local governments.

The delegation – led by CEO Alex Hanly and chairman Iggy Tan, with board directors Patrick Scallan and Dr Jingyuan Liu, and Lithium Universe Canadian director Victoria Vargas – engaged with government stakeholders, community partners and industry peers to reinforce the company’s strategy to address the lithium conversion gap in North America.

“The reception from federal, provincial and local government delegates has left a very positive impression on the LU7 board of directors,” Tan said.

“The region has made strong commitments since releasing the critical minerals strategies four years ago and we have seen that in the significant investments made within the battery supply chain and pragmatic discussions held with key government executives.”

Looking forwards

The highest priorities for the next few months include finalising the environmental permitting and approvals program, which entails completing the initial field survey, briefing with the ministry, finalising the Phase 1 Report, and preparing the first application.

Engineering work necessary for the environmental permit application is also a top priority, focusing on civil design, updated plant layout, and water management strategy.

The company is focused on commencing civil and structural engineering work essential to maintain project momentum.

This article was developed in collaboration with Lithium Universe, a Stockhead advertiser at the time of publishing.

This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.

Originally published as LU7 close to cost estimate for Canadian lithium refinery