By Business Reporter – Monday 10 February 2020
HARARE (Mining Index) – THE Arcadia Lithium Project is the 7th largest global hard rock lithium asset with a target annual production of 100,000t of premium priced ultra-low iron petalite.
Listed on the Australian (ASX: PSC) and Frankfurt (FRA: 5E8) exchanges, Prospect Resources is strategically focussed on lithium production in Zimbabwe as a leading battery mineral company.
The updated Definitive Feasibility Study (DFS) shows ore reserves have increased 39 percent, extending life of mine to 15.5 years.
Exceptional growth opportunities are available within the lithium industry with global demand for lithium being driven by Electric Vehicles (EV) growth.
According to Prospect Resources, shortage of long term supply will result in existing operational supply only in place to meet demand to 2021.
For additional producers to meet market demand by 2022, development would have had to commence in 2019.
“Therefore without further investment in new projects there will be a supply shortage by 2022 where EV growth will accelerate as they reach cost parity with ICE vehicles,” said Prospect Resources in a presentation of its updated Definitive Feasibility Study for February 2020.
“There is growing demand to supply into the growing EV or battery market and stable glass and ceramics,” said the lithium producer.
The Arcadia Lithium Project is Africa’s most advanced lithium project with low cost production and stability of supply into both chemical, glass and ceramics markets.
Arcadia, a game changing lithium project, has off take agreement and equity investment from Shenzhen Stock Exchange listed lithium chemical converter, Sinomine Resources Group (002738.SZ).
“Prospect is focused on the stable glass and ceramics market whilst taking advantage of the rising demand from the battery market,” said the company.
Petalite’s competitive advantage is that it is unique for its thermal properties as it has very low rate of thermal expansion, making it a valuable addition across the glass and ceramics industry.
Arcadia’s ultra-low iron petalite is a key raw material for the production of glass ceramics (cooktops), ceramics (porcelain enamel, sanitary ware, ceramic tiles and dinnerware), glass (electronically tintable glass) and fibreglass.
Prospect revealed the glass and ceramics industry is the second largest market after the rechargeable batteries industry and is mature, with producers such as Saint-Gobain, Schott AG and many more using petalite in their products.
“Ultra-low iron petalite is unique as it is suitable for white and transparent products due to its low iron content. It does not present the frothing problems generally associated with spodumene,” added the lithium producer.
Prospect is only listed to produce low iron spodumene and ultralow iron petalite concentrates. Technical grade Petalite has a 61 percent price premium over chemical grade 6 percent Li2O spodumene concentrate.
Prospect’s technical grade ultra-low iron petalite concentrate also exhibits low alkali levels that further differentiate its products.
With diversified markets across Europe, North America and North Asia, the project has close proximity to a skilled labour force and established infrastructure operating in an established mining jurisdiction with over 100 years of mining history. ENDS// www.miningindex.co.zw
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