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European Metals Holdings Ltd (AIM:EMH, ASX:EMH, OTCQX:EMHLF) has chosen a new site for its

Cinovec lithium processing plant, situated in an industrial area and further away from inhabited areas as the previous site had been.

Following evaluation and with relevant municipal and regional governments, the site of the former Prunéřov 1 power station, which was decommissioned in 2020, site has been chosen.

The site, which is owned and operated by EMH’s project level partner, CEZ, is also much larger than the former site at Dukla and the company said it should enable the processing plant to be laid out in a more effective and less costly manner, and enable “better and faster constructability”.

Executive chairman Keith Coughlan said: "While providing a good outcome for the surrounding communities, the decision to move the lithium processing plant from the Dukla to the Prunéřov site is expected to have a positive outcome on the capex and opex per tonne of the project due to the possibility of quicker permitting process and more effective layout of the processing plant.”

He added that these reductions in capex and opex will be incorporated into the definitive feasibility study (DFS).

“As would be expected in such circumstances, we were unable to provide information on this matter whilst a revised project configuration was being formulated, due to social and environmental impact sensitivities and had to defer the DFS until the details of the new site were agreed,” Coughland added.

“We understand that a deferral to a DFS is usually considered a negative matter, but in this case, we consider it to be for a positive result, particularly as the Prunéřov site is currently home to the Prunéřov Power Plant, and the permitting can now be advanced in a more timely manner with the cooperation of the local, regional and federal governments.”

He said the against a backdrop of the European Union's Critical Raw Materials Act (CRMA), the collaboration of the Cinovec project joint venture partners and the Czech government in the decision-making process provides a “very strong foundation for our upcoming application for strategic project status under the CRMA."

A spokesman for project company Geomet added that building a processing plant at an industrial location, situated at a greater distance from populated areas, “fulfils our philosophy of coal transformation, as it would provide enough jobs for the employees of the gradually closing coal mines and power plants located in the vicinity”.

An ore loading facility will still be built at the original site at Dukla, from where ore will be transported by rail to Prunéřov.

The mayor of Kadaň welcomed the plan and prospects for local jobs amid “the end of coal”.