I tend to think that this won’t work out well

An Aim-listed miner is hoping to drive off with a slice of the European electric car market by reviving an old lithium mine near Dresden.

Bacanora Minerals, which is developing a lithium project in Mexico to cater for the Asian market, now wants a toehold in Europe, and believes it can feed the German auto industry by reopening the Zinnwald mine in southern Saxony.

Hmm.

The company will pay €5m (£4.26m) for a 50pc stake in Zinnwald, and put another €5m into a feasibility study over the next 18 months. Should the project pass muster, it will have the option to buy out its partner, SolarWorld AG, for a further €30m.

‘Coz, y’see, I know SolarWorld and their work on this deposit. And at least at the last update I got it made economic sense if the mineral containing the lithium was already above ground. But it didn’t if you had to go and dig it up.

Bacanora would use processing techniques developed at its Sonora mine in Mexico in its German operation,

Don’t really see that happening either. It’s entirely different minerals, y’see?

But, obviously, I can be wrong about these things.

7 comments on “I tend to think that this won’t work out well

  1. A good thing this is a private business, even if it is a scam, which would be my first assumption.

    Because if this was a decision by British Leyland, we would be in a deep hole for the next twelve years and see a couple of billion pounds wasted. As it is we can sit back with a bag of popcorn and see how long it takes for reality to hit.

  2. Jgh, it’s bloody hard to re-open a mine in the EU. It takes miles of paperwork. Lots of bribes have to be paid – sorry compensation for xxxx, plus schemes to landscape the workings, and payments for several dozen eco assessments. It’s taken about 10 years for Atalaya to get the former Río Tinto mine back into somewhere approaching operations.

  3. I did comment on that when the news came out. It’s not ridiculous, no, but of course I’m not going to venture a professional opinion on the numbers.

    The usual extraction method is to find a brine and then extract from that. And the Cornish rock is lithium containing (it’s exactly the same as that here actually) and there is also a geothermal b rine system they can tap into which has some of that local lithium dissolved into it. Seems entirely sensible.

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