Rock Tech Lithium (TSXV: RCK) has finished a scoping study that confirms the economic viability of building and operating a lithium conversion facility in Red Rock, Ontario. The study gives the project an after-tax net present value of C$2.3 billion ($1.7bn) and an internal rate of return of 22.2%.

The new plant will produce up to 32,000 lithium carbonate equivalent (LCE) using both Rock Tech’s and third-party feedstock. The ability to accept feed from mines throughout North America created a closer option for processing.

“The scoping study supports our North American plans with a strong business case,” said Rock Tech CEO Dirk Harbecke. “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.”

The company is building a fully permitted lithium converter in Germany and is eager to supply the North American market as well. Up to 80% of the basic engineering from the Guben converter to the new one in Ontario. The strategy will accelerate project development and provide a competitive advantage to the first lithium converter in Ontario.

The Red Rock converter has a potential capital expenditure of C$1.6 billion and an expected life of 25 years. The plant as designed will produce either lithium carbonate or lithium hydroxide monohydrate from spodumene concentrate. A final decision on output will be made based on market demand.

Source: MINING.COM – Read More