From Proactive Investors UK:Talga Group* (ASX:TLG) A$1.42, Mkt...

From Proactive Investors UK:

Talga Group* (ASX:TLG) A$1.42, Mkt Cap A$429m – LKAB and Mitsui Extend Talga LOI for Swedish Graphite Anode Project

LKAB and Mitsui have agreed to extend the Talga Letter of Intent on their Swedish Graphite Anode Project till 30 November 2021.

The LoI considers co-development of Talga’s initial European green anode project for lithium-ion batteries including construction of a scalable 19,000tpa anode production facility and integrated graphite mining operation in northern Sweden at Vittangi.

Management claim the project has potential to expand further to 85,000tpa through the expansion into the Niska Project.om Proactive Investors UK:

LKAB and Mitsui have been working through their due diligence, customer interactions, and advanced discussions on potential joint development but have yet to agree terms.

Conclusion: While many deals take longer to consummate that initially envisaged we wonder how this deal will work without full-scale mining licenses at Vittangi And Niska.

We are not aware that the Swedish government has issued a full-scale mining license on any project in Sweden for many years and we wonder how the government is going to reconcile its environmental stance with the need to produce battery grade graphite to feed the developing European EV battery industry.

Is the government going to allow Talga to raise production on its small trial mine and set a new precedent for other miners to follow or is the government going to mess Talga around for the next 10 years as it has done with some other miners in the region.

*SP Angel acted as UK broker to Talga Resources. SP Angel also act for Oxis Energy a leading Lithium metal battery development company.