Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Lithium Australia (ASX: LIT) announced that covid-related restrictions have pushed the company to reduce its presence in Germany.
In a press release, the miner said that restrictions rendered the work in Saxony’s Ore Mountains “almost impossible.”
“That, together with the considerable financial commitments required to maintain projects in the area, led the company to substantially reduce its activities,” the company said.
Lithium Australia says it wants to focus on opportunities related to its patented process of recovery of lithium from low-grade spodumene without roasting (LieNA)
In detail, Lithium Australia did not renew the Sadisdorf license after it ran full term, relinquished the 133-square kilometre Eichight exploration license, and is yet to make a decision on the future of the Hegelshöhe license.
“Rationalising the company’s exposure to direct exploration expenditure in Europe is in line with our corporate policy, which has seen a marked reduction in our global exploration footprint and the farm-out of many assets,” Lithium Australia’s managing director, Adrian Griffin, said in the statement.
“Our preference is to maintain leverage to battery materials in Europe by applying our proprietary technologies, including lithium extraction, cathode powder production and battery recycling, to emerging opportunities.”
According to Griffin, his team sees the patented process of recovery of lithium from low-grade spodumene without roasting (LieNA) as having great potential it can produce feed for the production of lithium-ferro-phosphate batteries.
“Europe is just awakening to the benefits of LFP and, through company subsidiary VSPC Ltd, we have the technology to revolutionize its production,” Griffin said.
Comments
WetCoastCommentator
This is not a surprise, with the location of the three properties just North of the Czech border. That country has failed to stem the spread of Covid and its German neighbour states of Saxony, Thuringiaand Bavaria are bearing the brunt of cross-border infections! Sorry for the company personnel.