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Nordic Mining acquires 68% of Keliber Oy and confirms its strategy of exploration and production of high-end minerals and metals. Keliber has plans and permits for exploration and production of lithium carbonate in Finland.
Keliber will be the first European producer of lithium carbonate, scheduled to start production in 2010. One of the main applications for lithium carbonate is for production of batteries to mobile phones, laptops, electric vehicles, portable tools a.o. The increasing demand for electric and hybrid cars is boosting production of lithium ion batteries, indicating a positive forecast for lithium carbonate.
Keliber's production plant in Finland is expected to be cost competetive with current production of lithium carbonate and has a 'green' profile with regard to both the process itself and the final product.
'The realisation of the lithium project will give opportunities of strategic and industrial importance for Nordic Mining', says Ivar S. Fossum, CEO. Lithium is a mineral with advanced forward-looking applications and is in particular attractive as a component in the new generation of batteries. The shareholders of Keliber have build a solid platform for further development in their preparations for the first European production plant for lithium carbonate.'
Keliber Oy has mining concessions, permits and approved plans for exploration of lithium minerals in Kaustinen in the Osterbotten region in Finland.
In addition to mining concessions, the plans also includes a new process plant for production of lithium carbonate. (Li2CO3).
Total investments are estimated to EUR 40 – 45 million. Keliber has carried out project development for several years and the company is ready to enter into contracts for civil work, construction and erection once financing has been established. Nordic Mining will play a key role in the financing of the project and will commence preparations for this in the first half of 2008.
Production is scheduled to commence in 2010. Production will initially be based on a resource of spodumene ore of approximately 3 million tons with a grade of 0.92% lithium oxide. The spodumene ore also contains economical grades of tantalumpentoxide and quartz-feldspar. The planned production from this resource represent a sales value of approximately USD 250 million at current market prices for lithium carbonate. In addition, Keliber has exploration licences for two spodumene deposits which at a later stage might be processed in the same plant.
Lithium has many industrial application areas and there are several derivaties based on lithium, i.a. lithium carbonate. Lithium carbonate is used for instance in the glass and ceramic industries, for production of lubricants and in pharmaceutical products as well as in various alloys. An important application area for lithium carbonate is in batteries for mobile phones, computers, electric and hybrid cars, electric tools etc.. Lithium has special properties as regards ability to store electric energy, and the battery sector is an important growth area for lithium carbonate.
Increased focus on environmental issues and CO2 emission have already significantly affected the demand for electric and hybrid cars based on lithium ion batteries. The large international car manufacturers have development programs and focus which clearly indicate increased relative importance of these car types in the coming years. Toyota, as an example, has informed of plans to go 100% hybrid by 2020.