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.
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.