TIDMALK
RNS Number : 1695V
Alkemy Capital Investments PLC
08 August 2022
8 August 2022
Alkemy Capital Investments Plc
Alkemy to build Lithium Sulphate Plant at Port Hedland, Western
Australia
Alkemy Capital Investments plc ("Alkemy") (ALK:LSE) is pleased
to announce that the company will build a Lithium Sulphate plant at
Port Hedland, Australia's largest export port located in the
Pilbara region of Western Australia, to feed the Tees Valley
Lithium Ltd (" TVL ") Lithium Hydroxide plant at the Wilton
International Chemicals Park, Teesside, UK.
HIGHLIGHTS
-- Alkemy to build Lithium Sulphate (LSM) plant at Port Hedland,
in the Pilbara region of Western Australia to serve as a refining
hub for Australian miners.
-- Port Hedland hosts the largest bulk export port in the world
and the largest container port in Australia.
-- The Pilbara is a major spodumene producing region and
centrally located near existing and planned spodumene producers in
Australia.
-- Port Hedland LSM plant production will supply the expansion
of TVL's Wilton Lithium Hydroxide (LHM) facility, with Train 1 set
to produce 24,000 tpa of battery-grade lithium hydroxide from
2024.
-- Port Hedland LSM plant will offer Australian spodumene
producers mid-stream processing options with direct access to the
premium European battery market.
-- Port Hedland LSM plant will export a higher-grade,
lower-volume product resulting in less tonnage shipped and less
transport carbon emissions.
Alkemy announces a plan to build an LSM plant at Port Hedland in
the Pilbara region of Western Australia.
Train 1 of the Port Hedland LSM plant is set to process
spodumene from Australian lithium miners to produce 40,000 tpa of
primary LSM, with Trains 2-4 adding a further 120,000 tpa primary
LSM production in future expansions.
The Port Hedland LSM plant, together with TVL's planned LHM
processing facility at the Wilton International Chemicals Park in
Teesside, UK, will deliver a low carbon, de-risked lithum supply
chain between Western Australian spodumene producers and the
burgeoning European lithium battery cell market.
Alkemy and TVL Director, Sam Quinn, commented:
"Alkemy is delighted to announce its plans to develop the Port
Hedland LSM plant.
Working with leading global metals trader Traxys to source the
spodumene feedstock for the Port Hedland LSM plant, Alkemy is now
progressing discussions to finalise and secure the optimal site for
the Port Hedland LSM plant and the definitive spodumene feedstock
agreement to underwrite the development of the plant.
Building the Port Hedland LSM plant will provide Australian
spodumene producers with a complete mid-stream refining solution
with direct access to the European market.
Importantly, it will also bring major downstream processing and
value adding to the Pilbara region of Western Australia, with
significant multiplier benefits for the local community, whilst
reducing the carbon footprint of the end to end lithium battery
cell supply chain to meet new European emissions standards."
Alkemy and its wholly-owned subsidiary TVL recently announced a
supply agreement with leading global physical trader and merchant
in metals and natural resources, Traxys North America LLC, a member
of the Traxys Group of companies (" Traxys ").
Alkemy and TVL are partnering with Traxys to source and supply
lithium feedstock for TVL's LHM processing facility in the UK.
This partnership with Traxys will also encompass the sourcing
and supply of spodumene concentrate to the Port Hedland LSM plant
for Train 1.
The Traxys partnership will offer existing and new Australian
spodumene producers the opportunity to supply their spodumene
concentrate to a merchant mid-stream lithum hydroxide refining
solution through TVL's Port Hedland primary LSM plant in Australia
and the Wilton LHM plant in the UK.
Based on market feedback to date, this offering is expected to
be most attractive to Australian spodumene concentrate producers as
it will provide them with:
-- Direct access to the premium European lithium battery gigafactory market;
-- Downstream processing capability in Australia at no capital cost;
-- Ability to reduce net carbon emissions in the lithium battery
cell supply chain by lowering the volume of material transported to
downstream refining capacity; and
-- Lower overall delivered costs of spodumene to customers by
reducing transport distances and volumes.
More than 700 GW of lithium battery gigafactories are planned
for construction across Europe which will require over 325,000
tonnes of LHM per annum from 2030.
Currently, there is no LHM production capacity in Europe or the
UK.
Approximately half of the carbon footprint of a lithium battery
cell is from t he mining and transport of the lithium raw materials
in the battery cell.
Major battery cell manufacturers have stated publicly that the
best way to reduce the carbon footprint of battery cell production
is to reduce the volume of raw materials shipped around the world
by refining lithium raw materials prior to shipping.
Alkemy has identified Port Hedland as the optimal site for the
proposed new LSM plant for a number of key reasons:
-- Proximity to existing and planned spodumene producers in the Pilbara;
-- Well located for the import of spodumene production from
other parts of Australia for conversion to primary LSM prior to
export to the UK;
-- Access to critical infrastructure, including skilled labour, road, power, gas, water and telecommunications;
-- Adjacent to world's largest bulk export port and Australia's largest container port; and
-- Ability to source renewable energy and energy storage from
new developments planned in the region, delivering the new LSM
plant wth low carbon energy sources.
Alkemy has commenced discussions with relevant Western
Australian Government agencies regarding an appropriate site for
the planned Port Hedland LSM plant.
At this stage, Alkemy expects the plant to be located at a site
close to Port Hedland. To view the map, please click on the
following link:
https://www.alkemycapital.co.uk/images/2022/August/Alkemys_plant_location_-_Austalia.png
Downstream processing of Australian critical mineral production
is a key focus of the Australian Federal Government and the Western
Australian State Government and Alkemy is very appreciative of the
support already expressed by Government agencies for the Port
Hedland LSM plant.
Construction of Train 1 of TVL's LHM processing facility at the
Wilton International Chemicals Park in Teesside, UK, the first of 4
trains planned for the site, is due to commence at the end of this
year.
Initial production of 24,000 tpa of battery-grade LHM is planned
for 2024. Once completed, all 4 trains will produce a total of
96,000 tpa LHM, representing around 15% of Europe's projected
demand by 2030.
By sourcing low carbon primary LSM from the Port Hedland plant
and powering an electrochemical process with offshore wind, TVL is
aiming to supply its customers in Europe and the UK with the
world's lowest-carbon lithium hydroxide.
Alkemy also confirms that 100,000 options have been issued to
consultants on the same terms as set out in the company's RNS dated
4 August.
Further information
For further information, please visit Alkemy's website:
www.alkemycapital.co.uk or TVL's website
www.teesvalleylithium.co.uk .
-Ends-
Alkemy Capital Investments Plc Tel: 0207 317 0636
Sam Quinn info@alkemycapital.co.uk
Buchanan Tel: +44 (0)20 7466 5000
Bobby Morse/Abigail Gilchrist TVL@buchanan.uk.com
VSA Capital Limited Tel: 0203 005 5000
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance)
Shard Capital Partners LLP Tel: 0207 186 9952
Damon Heath damon.heath@shardcapital.com
Tel: 0207 186 9927
Isabella Pierre isabella.pierre@shardcapital.com
NOTES TO EDITORS
Alkemy is seeking to develop, construct and operate the world's
leading independent and sustainable lithium hydroxide production
facility.
Alkemy, through its wholly-owned subsidiary Tees Valley Lithium,
has secured a 9.6 ha brownfields site at the Wilton International
Chemicals Park located in Teesside, a major UK Freeport.
Alkemy has completed a Class 4 Feasibility Study for its
proposed lithium hydroxide facility which will process feedstock
imported from various sources to produce 96,000 tonnes of premium,
low-carbon lithium hydroxide annually, representing around 15% of
Europe's projected demand.
Forward Looking Statements
This news release contains forward--looking information. The
statements are based on reasonable assumptions and expectations of
management and Alkemy provides no assurance that actual events will
meet management's expectations. In certain cases, forward--looking
information may be identified by such terms as "anticipates",
"believes", "could", "estimates", "expects", "may", "shall",
"will", or "would". Although Alkemy believes the expectations
expressed in such forward--looking statements are based on
reasonable assumptions, such statements are not guarantees of
future performance and actual results or developments may differ
materially from those projected. Mining exploration and development
is an inherently risky business. In addition, factors that could
cause actual events to differ materially from the forward-looking
information stated herein include any factors which affect
decisions to pursue mineral exploration on the relevant property
and the ultimate exercise of option rights, which may include
changes in market conditions, changes in metal prices, general
economic and political conditions, environmental risks, and
community and non-governmental actions. Such factors will also
affect whether Alkemy will ultimately receive the benefits
anticipated pursuant to relevant agreements. This list is not
exhaustive of the factors that may affect any
of the forward--looking statements. These and other factors
should be considered carefully and readers should not place undue
reliance on forward-looking information.
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