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- Lithium Universe (ASX:LU7) completes its location-scouting study
- The study sought the best place in Canada to locate a lithium carbonate refinery
- It favoured Becancour Industrial Park
- The asset is located between Quebec City and Montreal
- Shares last traded at 4.1 cents
Lithium Universe (ASX:LU7) has completed a study it commissioned to find the best location for its Canadian lithium carbonate lithium refinery.
The authors of that study most favour the Becancour Industrial Park located between Quebec City and Montreal.
Lithium Universe is now in discussions with proponents towards securing land parcels.
Expansive search
More than 20 municipalities were contacted during the study.
Four key regions were selected: a parcel of land on the Trans Taiga Highway in James Bay; industrial park areas outside Montreal including Becancour, established mining communities in Rouyn-Noranda and Amos, and finally, an industrial area in Saguenay/Alma.
All in all, the company is seeking to build a 16,000-tonne per annum capacity lithium carbonate refinery.
The asset is a crucial element of Lithium Universe’s Quebec Lithium Processing Hub (QLPH).
Hatch was appointed as the engineering firm behind the study.
Management comment
“The comprehensive location study carried out by Hatch for our battery-grade lithium carbonate refinery has guided our decision-making process, leading us to focus on a suitable location,” LU7 Chair Iggy Tan said.
Mr Tan outlined certain issues the company ran into during the study.
Specifically, the company’s top dog highlighted that setting up a chemical refinery in the James Bay region is “not viable”.
“However, setting up a concentrator near an ore body is feasible. We can transport the Spodumene concentrate to a regional facility, such as the Bécancour Industrial Park, where it can be converted into battery-grade lithium carbonate,” Tan added.
Talks with industrial park authorities remain ongoing.
LU7 shares last traded at 4.1 cents.
