Lithium Universe Ltd (ASX:LU7, OTC:ESMAF) is making significant progress on definitive feasibility study (DFS) engineering work for the Bécancour Lithium Refinery project in Québec, Canada, with a 3D model and plot plan layout completed.
This provides a comprehensive visual and spatial understanding of the refinery's design and allows for efficient space utilisation by helping LU7 visualise the placement of equipment and infrastructure as well as facilitating future modifications if necessary.
The design of the refinery layout considered safety standards and best practices, effective process flow, material compatibility and adequate spacing required for plant operation.
Study progressing well
It forms part of the Hatch-managed engineering study, which LU7 says is progressing “extremely well” with a number of milestones passed and critical elements already completed.
Chairman Iggy Tan said: “The Hatch team engaged for this project is dynamic, practical and experienced, fully understanding our strategy to fast-track the DFS process by leveraging the insights and proven technology from the Jiangsu Lithium Carbonate reference plant.
"Hatch can easily apply their knowledge on this project as the original designer and builder of the reference project as well as any other lithium plants in their impressive portfolio of projects. We are delighted with the progress of the engineering work.”
Essential documents
Other essential documents, including process flow sheets and stream tables, have been finalised with these documents being crucial for managing material and energy flow through the refinery, detailing the processing steps and the interconnections between various units within the plant.
Procurement efforts are also advancing strategically in line with the company’s ‘same equipment, same suppliers’ strategy.
READ: Lithium Universe adopts proven procurement strategy for Bécancour Lithium Refinery
The focus is on sourcing major equipment from the same suppliers used for the Jiangsu reference plant with this approach leveraging existing relationships to ensure consistency in quality and performance.
Another advantage of utilising established offshore suppliers is the mitigation of potential scheduling disruptions caused by the increased demand for construction materials and highly skilled tradespeople in North America driven by the surge in supply chain-related projects.
Active negotiations with selected suppliers aim to secure firm pricing, helping to control costs and mitigate financial risks.
Infrastructure development
Meanwhile, infrastructure development and utility connections at the site are underway, addressing essential elements such as water supply, power and transportation links needed for refinery operations.
Material take-offs (MTOs) are being performed to prepare a detailed capex estimate, ensuring a comprehensive financial plan for the project's construction and operational phases.