Ann: Rincon Lithium Project Update, page-149

“10,000tpa Project – Pre-Development Engineering Works

The engineering works, to be conducted in conjunction with a globally recognised engineering services company with experience in the lithium sector, comprises the capture of the significant intellectual property developed from the 2,000tpa operation, value engineering of various aspects of the project, refinement of the process design and FEED (front end engineering design), requisite detailed engineering, and engagement of an EPCM service provider in preparation for FID (financial investment decision) – considered a key foundational element for the successful delivery of the next phase of the Project.”

The 500tpa pilot plant was a failure, though the company was probably too embarrassed to admit it. Now the 2,000tpa plant has been thrown into the too hard basket.The good news is that AGY finally acknowledges it lacks the in-house expertise to build a functional plant.Unfortunately, they should have made that decision after the pilot plant debacle. It looks like they've decided to close the barn door after the horse has bolted. It's going to need a miraculous recovery in the Lithium Carbonate price for them to ever be able to build another plant. If that happens that could be many years away.