After two years, lithium is again a business, not a political...

After two years, lithium is again a business, not a political struggle. CEZ Power Company has signed an agreement with Australian mining company EMH. The agreement is valid until the end of March next year. However, according to the preliminary agreement, he was due to finish due diligence by the end of this year. "We now have more time for a thorough economic and technical assessment of the whole project, it is a really complex thing," said CEZ chief Daniel Benes. The new deal with the Australians does not provide for an original loan of two million euros. But the Australians did not borrow the money in the end. One reason, according to HN, was that CEZ decided to acquire a stake directly in Geomet. This company is a more secure investment for CEZ - Geomet as a Czech company is subject to domestic law, it is not on disallowed and holds all existing permits and licenses. Director and one of the shareholders of European Metals Holdings Keith Coughlan said the money from CEZ for the sale of the stake will be used by the Australian company to further finance the preparation of mining in Cínovec. The construction of the processing plant together with the start of mining should cost about 10 billion CZK. The Australians were looking for a partner. They were interested in cooperation with CEZ several years ago. According to Benes, the reason why CEZ turned around is the development of electromobility, which has accelerated significantly over the past two years: "Being part of the entire chain, from mining to the production of stationary or automotive batteries, makes a completely different sense today." CEZ does not want to comment on future billions of investments in the processing company or the batteries themselves. However, according to HN, it is more likely that other partners would be sought for these investments. The mining project in Cínovec was one of the most widespread in Europe three years ago.
At a time of political turmoil, less than one percent of shares in EMH were bought by investor Pavol Krúpa. CEZ is now acknowledging the agreement with the Australians and wants to strengthen its share in EMH after the deal is completed. "I want to be a distinctive player," he said without further details. According to HN, he might want to get more than a quarter share. This would ensure his influence and at the same time would not entail any other obligations, such as takeover bids to other shareholders.
In Europe, competition has also advanced: on the German side of Cínovec, Deutsche Lithium has a final mining project and expects it to be built in 2022. In Serbia, the transnational mining giant Rio Tinto is preparing mining in the Jadar region. Savannah Resources, a British company, is already mining lithium in Portugal. "We do everything we can to catch up," said Richard Pavlik, director of Geomet.
http://HN.IHNED.CZ/c1-66681200-cez-udelal-dalsi-krok-k-tezbe-lithia-na-cinovci-byt-soucasti-rozvoje-elektromobility-dava-smysl-rika-benes