Lithium Universe Ltd (ASX:LU7, OTC:ESMAF) is making strong progress with the Bécancour Lithium Refinery Project in Québec, Canada, which remains on track and on schedule with the added bonus of strong government engagement.
The company executed an option agreement in February to acquire the site for the proposed refinery within the Bécancour Waterfront Industrial Park (BWIP), which lies between Montreal and Québec City and is near major highways and railways.
Lithium Universe has since achieved a number of key milestones including finalising the plant layout, issuing technical specifications for capex estimation and progressing with supplier quotation activities.
Environmental site visits and studies are ongoing and no significant issues have been identified.
The company’s engineering partner, Hatch, which is experienced in building lithium conversion facilities and tackling challenging projects, is making a smooth transition from Brisbane to Montreal offices, ensuring continuity in project management.
Adhering to timeline
Lithium Universe says the project is adhering to its timeline, with significant progress in engineering and procurement, ensuring readiness for a capital cost estimate and commitment to ensure environmental compliance with the regulatory framework. Any potential delays are being mitigated by early contractor engagement and strategic risk assignment.
Lithium Universe chairman Iggy Tan said, “The project is on track, finalising plant layout, issuing capex specs, progressing supplier quotes, with smooth office transition and no environmental issues, ensuring readiness for capex cost estimate.
“The reception from federal, provincial and local government delegates has left a very positive impression on the LU7 board of directors.
"The region has made strong commitments since releasing the critical minerals strategies four years ago and we have seen that in the significant investments made within the battery supply chain and pragmatic discussions held with key government executives.
“We look forward to advancing the company’s Bécancour Lithium Refinery to contribute in making Québec the lithium conversion centre within the Transatlantic region.”
Work ahead
Over the coming months, priorities include finalising the environmental permitting and approvals program. This entails completing the initial field survey, briefing with the Ministry, finalising the Phase 1 Report and preparing the first application.
The engineering work necessary for the environmental permit application is also a top priority with a focus on civil design, updated plant layout and water management strategy.
In parallel, equipment procurement will involve preliminary engineering, securing vendor proposals and establishing schedules. It is crucial for environmental compliance that the treatment of process effluent and site runoff is confirmed.
Commencing civil and structural engineering work is also essential to maintain project momentum while finalising the plant layout will ensure all components are correctly positioned and integrated.
Lastly, execution phase planning will be progressed, contingent on the monthly budget, to ensure that all activities are appropriately funded and scheduled for efficient project advancement.
Canada visit
Members of the Lithium Universe leadership team have visited Eastern Canada to meet with various stakeholders. The delegation, led by CEO Alex Hanly and including chairman Iggy Tan, directors Patrick Scallan and Dr Jingyuan Liu and Canadian director Victoria Vargas, engaged with government stakeholders, community partners and industry peers.
LU7 board of directors (bottom right) inspecting the Bécancour Lithium Refinery Site.
The meetings in Montreal, Bécancour, Québec City and Ottawa reinforced the company's strategy to address the lithium conversion gap in North America and provided updates on our engineering progress and commercial discussions.
The visit included meetings with various federal government stakeholders from Invest in Canada (IIC), Natural Resources Canada (NRCAN), Innovation, Science and Economic Development (ISED) and Export Development Canada (EDC).
The lack of refining capacity in Canada makes LU7’s lithium carbonate plant an innovative project — there are no current operating or planned facilities of this kind within the country.
By building lithium conversion capacity alongside spodumene mines Canada can become wholly self-sufficient in the lithium chemical supply chain.
In a meeting with the company, Pierre Fitzgibbon, Minister of Economics, Innovation and Energy, reiterated his support for LU7’s vision of transforming Québec into the Centre of Lithium Conversion for the transatlantic region.
Lithium Universe emphasised Québec's strategic benefits, including hydroelectric power, proximity to the James Bay region and logistic advantages with port access to the transatlantic region. It is impressed with the “forward-thinking” provincial government of Québec and the progress of the Strategic Innovation Zone.
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