“We understand that a deferral to a DFS is usually considered a negative matter, but in this case, we consider it to be for a positive result.”
These were the words European Metals’ (ASX:EMH) executive chair Keith Coughlan told investors on Friday upon announcing the company had selected a new site for its Czech battery metals play.
That project, called Cinovec – held in a 49/51 JV with Skupina ČEZ, that entity being the majority holder – is now to be located on-site the same land holding the Czech Prunéřov Power Station.
That coal powered plant, once the largest in the Czech republic, was largely shut down in 2020 – but a second asset remains online, according to the Global Energy Monitor (GEM).
The Prunéřov plant remains operated by ČEZ group – who hold 51% of the JV developing Cinovec; that JV entity being called Geomet.
A DFS for the Cinovec project – as forewarned by EC Coughlan – will now be pushed out further to account for the new location.
All in all, the answer for relocation comes down to dollars and sense: being in the Prunéřov industrial area should, according to EMH, make economics of the project more desirable overall.
The company expects to save on capex and opex “per tonne due to the possibility of quicker permitting and more effective layout of the processing plant,” Coughlan added. Only an import terminal needs to be built.
“As would be expected in such circumstances, we were unable to provide information on this matter whilst a revised project configuration was being formulated, due to social and environmental impact sensitivities.”
The company noted on Friday that the now-nearby 750MW Prunéřov 2 Coal fired power plant is “further away from inhabited areas.” According to GEM, Prunéřov was once among the dirtiest power plants in Europe.
Geomet chair Ladislav Štěpánek said on Friday that by shifting operations on-site a coal plant, the company can actualise its goal of phasing-out coal fired power in the community.
“Prunéřov is a suitable place for our project. It is an industrial location at a greater distance from populated areas where a lignite power plant is already operating. Building a processing plant in Prunéřov fulfils our philosophy of coal transformation,” Štěpánek said.
“It would provide enough jobs for the employees of the gradually closing coal mines and power plants located in the vicinity. Only an ore loading facility will be built at the original site at Dukla, from where we will transport the ore by rail to Prunéřov.”
Notably, the mayor of the affected community township, a place called Kadaň, was also quoted in Friday’s announcement.
EMH last traded at 42c.