Rock Tech Lithium said it’s building a compelling case to build a lithium conversion refinery in Red Rock.
The company revealed some details from an engineering scoping study on Sept. 19 that it said “confirms the economic viability and operational feasibility” to construct and operate a lithium conversion facility in Ontario.”
The Township of Red Rock and the site of the former Norampac mill is its preferred location, northeast of Thunder Bay, on the north shore of Lake Superior.
Rock Tech holds the Georgia Lake deposit north of Red Rock and is working with the Red Rock Indian Band and BMI, a local brownfield site redeveloper, to prepare the site.
The proposed plant, valued at $2.3 billion, would take spodumene concentrate, mined and milled at Georgia Lake to produce either lithium carbonate or lithium hydroxide monohydrate. The facility would produce up to 32,000 ktpa lithium carbonate equivalent (LCE) and have an expected operating life of 25 years.
Rock Tech views this project as a regional hub processing plant for other lithium deposits that might come into production.
The Canadian and Germany company hasn’t yet arranged the $1.6-billion financing package the scoping study said it will need to build the refinery and hasn’t made a construction decision.
If Rock Tech proceeds with a refinery in Ontario, it would be its second such facility. The company has broken ground to begin construction of a sister refinery in Guben, Germany to serve the European automotive market.
To support that European facility, Rock Tech was successful in securing €100 million ($152 million Canadian dollars) in direct government grants to support Rock Tech making a final decision to greenlight that project by year’s end.
Neither the Ontario or federal governments here have yet announced any subsidies for a north shore refinery.
"The scoping study supports our North American plans with a strong business case,” declared Rock Tech CEO Dirk Harbecke in a news release.
“We believe in the tremendous opportunity our projects will bring for the region. Our experience also shows that world-class partners and strong political support are critical for the success of lithium projects. This is essential in challenging markets."
Rock Tech is one of four leading lithium players in northwestern Ontario. All have announced plans to build lithium processing plants.
It’s not known if Ottawa or Queen’s Park are willing to invest in four refineries or possibly one single hub processing facility in a central location to service them all.
From its study, Rock Tech said it can transfer 80 per cent of the basic engineering from its Guben plant to Ontario, resulting in a significant cost saving and an accelerated timeline.
