CEZ awaits feasibility study to decide on lithium project

Prague, Aug 7 (CTK) - Czech energy group CEZ has not yet decided on the mining and subsequent industrial use of lithium as it is awaiting the results of the project's feasibility study, which could be ready this year, CFO Martin Novak told CTK today.

According to Novak, the study was delayed due to examination of the impacts of locating the lithium processing plant at the site of the Prunerov coal-fired power plant, northern Bohemia, instead of a place near Teplice, also northern Bohemia, which was envisaged earlier.

CEZ decided that the lithium processing plant would be located at Prunerov last spring. The company thus withdrew from the originally selected site at the Ujezdecek industrial zone near Teplice, which was opposed by citizens and mayors. According to the new plans, only a covered transshipment point would be built in Ujezdecek, from where the ore would be transported by rail to Prunerov.

"The study has been delayed a bit because of this. Moving the plant to Prunerov takes time because it is a completely different perspective. We expect that during the course of this year we could have more precise knowledge of how the whole project could work," Novak said. At the same time, he admitted that the completion of the study may extend into next year.

The lithium mining is being prepared by Geomet, a company in which Severoceske doly, a member of the CEZ Group, owns a majority stake. The company intends to extract lithium-bearing ore by underground mining from the Cinovec mine in the Krusne hory (Ore Mountains).

The possibility of lithium mining in the Czech Republic became one of the topics discussed ahead of the 2017 parliamentary elections. In March this year, the government approved a proposal that the lithium reserves in the Cinovec area will become a deposit of strategic importance. According to the cabinet, the lithium in the area is of a quality that can be used, for example, for batteries for electric cars and other devices.

According to the Industry and Trade Ministry, the aim of the measure is to facilitate the possible future extraction of the raw material and to prevent possible supply disruptions.

Lithium is considered to be the metal of the future, and the Czech Republic is estimated to have about 3 percent of the world's reserves, the vast majority of it at Cinovec and a small amount near Horni Slavkov. The deposit at Cinovec is the largest in Europe.

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