Battery Metals Summit - 28/11/2016, page-5

CLQ's Syerston Project is one of the highest grade and largest nickel and cobalt deposits outside of Africa and are currently processing Ni and Co sulphates for end user testing in Perth.  

Way ahead of the competition.  

As Friedland says "the first mine to be developed to exclusively supply the lithium-ion battery industry with high-purity nickel and cobalt sulphate."

Disruption can happen quickly: Friedland

ROBERT Friedland has warned the world is facing “airpocalypse”, which will underpin demand for battery metals.


Robert Friedland.
Delivering his first address as co-chairman of Clean TeQ Holdings in Melbourne today, Friedland said around 5 billion of the world’s projected 2030 population of 8.5 billion would live in urban areas, representing 1 billion more people than today.

He said by 2050, 6.3 billion people could live in urban areas.  But the rapid urbanisation came at a price, Friedland said, with air pollution becoming a major issue in many cities.  Friedland described the growing problem as “airpocalypse”, with governments around the world starting to act, mainly through various car restriction programs.

“Disruption can happen quickly,” Friedland said, pointing to two photos of New York’s 5th Ave, one taken in 1900 and the other in 1913.  In the 1900 photo, there’s just one car on the road with horse and carriages, while 13 years later, the reverse had occurred.  Friedland pointed to the demand for 2017’s Tesla 3, which he said could become the most successful electric vehicle launch in history.

Friedland noted as EVs went “mainstream” there would be a race to secure raw materials, which is where Clean TeQ comes in.  Clean Teq is aiming to develop one of the world’s largest sources of high-purity cathode raw materials for the lithium-ion battery industry, as well as the world’s first scandium mine, at Syerston in New South Wales. Friedland said the project, rich in nickel, cobalt and scandium, would be the first mine to be developed to exclusively supply the lithium-ion battery industry with high-purity nickel and cobalt sulphate.

In August, the company completed a feasibility study on a standalone scandium operation at Syerston, but also completed a prefeasibility study into a large scale nickel-cobalt development, where scandium would be a by-product.

Capital costs were estimated at $US680 million for a 2.5 million tonne per annum operation for an initial 20-year operation, with existing reserves available for up to an additional 19 years of life.

The PFS generated a post-tax net present value of $891 million, at an 8% discount rate, and an internal rate of return of 25%, assuming metal prices of $7.50/lb nickel and $12/lb cobalt.  Including a scandium oxide by-product increases the NPV to $1.2 billion and the IRR to 30%.

The company is in discussions with potential financiers and offtake partners.  Earlier this month, Clean TeQ raised $A15 million to fund ongoing studies.

Friedland is a 19.9% shareholder in Clean TeQ and only recently joined the board.

All resolutions at the AGM, including the re-election of Friedland, were passed.

Clean TeQ gained 1c to 41c.