Lithium Universe (ASX: LU7) charting path to build Quebec Lithium Processing Hub

Highlights 

• Lithium Universe is formulating a new strategy to establish vertically integrated “Québec Lithium Processing Hub” in Québec, Canada.
• LU7 is looking forward for a collaborative growth of lithium junior exploration companies operating in the James Bay area.
• The concept involves a multi-purpose independent 1 Mtpa concentrator to process ROM spodumene ore in the region.
• The firm plans to consider off-take ROM contracts with lithium junior partners in the region to ensure spodumene ROM ore supply.

In the latest announcement, Lithium Universe Limited (ASX: LU7) revealed the company’s vision to establish a vertically integrated lithium processing facility in Québec, Canada, planned to be called as “Québec Lithium Processing Hub” (QLPH).

Lithium Universe is looking forward for a collaborative growth of lithium junior exploration companies operating in the James Bay area, with an aim to make Canada stand out as a major supplier of lithium to the global market.  LU7’s concept of vertically integrated QLPH is expected to help in achieving this mission.

LU7’s processing hub strategy to promote collaborative growth

The concept involves establishing a multi-purpose independent 1 Mtpa concentrator (QLPH Concentrator) to process general run-of-mine (ROM) spodumene ore in the James Bay area. This would require a straightforward 4-stage crushing and dense media separation plant, says the company. Furthermore, Lithium Universe plans to consider off-take ROM contracts with lithium junior partners in the region to ensure spodumene ROM ore supply.

In the later phase when the junior exploration firms reach a stage to set up their own concentrator facilities, LU7 may help them in establishing their concentrator via a joint venture arrangement. Under this pact, LU7 would render support in developing a QLPH Concentrator at their mine sites.

With this approach of working together, sharing the proven design of the QLPH Concentrator as well as related operational knowledge, processes, and systems, there would be reduction in risks for junior players. Alongside, this strategy is also expected to preserve the lithium aspirations of the provincial government of Québec, says LU7.

All the spodumene concentrate from the QLPH concentrator or subsequent concentrators are planned to feed the downstream battery-grade lithium carbonate refinery (QLPH Li Refinery). The company is expecting lithium carbonate refinery to be rated at 16,000 tonnes per annum, and its design to be based on the operating Jiangsu lithium carbonate plant. 

Data source: company update

LU7 is yet to finalise a site for the concentrator plant. The plan is to have the plant site nearby Trans-Taiga highway with access to renewable power and local airstrips.