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03/07/20
14:27
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Originally posted by cruiser51:
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In the DFS the following on page 94: 2.3 Lithium Hydroxide Production AVZ acknowledges that due to the above average transportation costs of low cost SC6 product from site to port, the natural opportunity would be to convert more of the SC6 converted to Lithium Sulphate or to Lithium Hydroxide on site and then ship a smaller quantity of higher value added product, at significantly higher selling price from site to client. AVZ’s assessment is that producing Lithium Hydroxide from day one would be a challenge and that starting out along an incremental product production route would be a better fit for the MLTO organisation, which is a start-up mining operation. AVZ is not averse to revisiting the opportunity of producing Lithium Hydroxide once the MLTO is stabilised and operating in the DRC. It is fully understood that this next step will continue with that sustainability. It is envisioned that MTLO will always be, as a minimum, a two product producer as some of the offtake agreements are likely to be for SC6 only and others will be for Primary Lithium Sulphate (Li2SO4) and the third product would be Lithium Hydroxide (LiOH). I hope this helps. It looks like AVZ has and is considering all options. Rome wasn't built in one day, AVZ first has to learn to walk, before it can sprint. I am already happy when the plant and transport operation runs smoothly say by end 2023. Earlier and I am over the moon. But that is my opinion for what it is worth.
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Thanks mate, all very interesting. I think a staged process could be the way in any case if the sulphate option proves difficult to finance in the early stages. Walking before running as you say. I would be content with a late 2023 entry into the market. Will be interesting to see what shakes are made towards offtakes and financing over the next 6 months - especially as to levels of SC6 to be delivered under contract and what remains open.