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09:33
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This is good news. It confirms my thoughts regarding the LIT partnership and PLS's intention to enter the carbonate / hydroxide market. Although it could be some time before we know the results of the trial, assuming it works PLS will install a second train to supply feedstock to our very own processing plant in Port Hedland. Depending on what contracts are entered into with the end-users we could also see PLS perform a "Greenbushes" and eventually keep all Pilgangoora product for ourselves, process it in Port Hedland, and sell Carbonate / Hydroxide directly to the end-users, taking the Chinese processors out of the picture. This will be noted by the Chinese.
Originally posted by CYMON
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Let's attempt to add some value here rather than discuss the recent pull-back in the SP. Understandably it's never pleasant to see capital erosion, however the positives are considerable if you look at the most recent announcement regarding the long-term direction of the company. This was the first time we saw reference of the company looking to not only sell 6% concentrate but vertically integrate into a carbonate / hydroxide producer using Pilgangoora concentrate as feed-stock."...We have also been reviewing the latest R&D work into technologies which could lower the costs for converting spodumene into lithium carbonate and lithium hydroxide to ensure future competitiveness in terms of operating costs with the big brine projects. This conversion technology hasn’t changed in over 50 years as, until now, lithium has not attracted the R&D investment required to revolutionise the conversion processes..." "...There is no shortage of lithium deposits or concentrating plants in the world but there is a massive shortage of lithium carbonate and hydroxide plants and Lithium Australia is focused on filling that gap with its leading edge environmentally friendly processing technologies..." "...has a long-term strategy for the establishment of a lithium processing hub in Western Australia with an initial preference of Port Hedland given the proximity to infrastructure, but more importantly, proximity to WA’s lithium hotspot, Pilgangoora..." "...we have commenced discussions with off-take partners regarding the opportunity for Pilbara to participate in future downstream processing ventures. We recently commissioned an independent Scoping Study by a highly regarded global engineering firm into the opportunity to construct a lithium carbonate/hydroxide plant in Port Hedland in conjunction with partners. The results of this study were very positive, and it recommended advancing to a Feasibility Study and conducting a location study. I should stress that we wouldn’t undertake this work in our own right as our focus remains firmly on Pilgangoora , but we would consider pursuing such an opportunity with the right partners and in the right structure..."
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