Eramet: development projects in manganese and lithium achieve a new milestone
24 Juin 2019 - 8:00AM
Eramet: development projects in manganese and lithium achieve a new
milestone
Paris, June 24, 2019, 08:00 am
PRESS RELEASE
Eramet: development projects in manganese and lithium
achieve a new milestone
- Internal validation of the manganese mine expansion
project in Gabon and of the lithium development project in
Argentina
- Final investment decision planned at year-end, subject
to financing
- Launch of preparatory works in Gabon and
Argentina
The
manganese ore production expansion project in Moanda (Gabon) and
the lithium development project in Argentina have each successfully
achieved the internal project validation milestone ("Initial
Project Validation", "IPV") on schedule. This validation follows
the issuance of operating permits by the local authorities of both
countries in the past few months as well as major technical and
economic studies that have demonstrated the feasibility and high
value creation potential of these projects. The search for
financing is now actively underway.
In Gabon, the target is to increase Comilog's
overall manganese ore production capacity from 4.3 Mt/year in 2018
to 7 Mt in 2023, thus establishing Comilog as a long-term global
leader in the Manganese ore market. This increase will reduce cash
cost by c. 20%, bringing our market share up from currently 10% to
15%1. Based on the technical and economic feasibility studies,
investment in Gabon would amount to €640m2 over a 5-year period,
with a faster ramp-up of production.
The project economic balance requires
confirmation from the Gabonese government to maintain the current
legal and tax conditions, and particularly the mining agreement
between the Group and its partner, the Gabonese state. Furthermore,
the project has been subject to a detailed Environmental and Social
Impact Assessment (ESIA), conducted in accordance with the most
stringent international standards, those of the World Bank. The
Gabonese regulatory authorities have issued the certificate of
conformity. To meet the increase in volumes to be transported, a
change in the railway renewal strategy was set out at Setrag in
order to speed-up works and to increase reliability of freight and
passenger transportation.
In Argentina, where lithium industrial
production could start at end-2021, the Salta Provincial Mining
Secretariat validated the environmental and social impact study of
the plant and the industrial training centre as well as the request
for tax stability.. The Centenario deposit contains drainable
resources estimated at nearly 10 million tonnes of lithium
carbonate equivalent (LCE). Production is expected at 24,000 tonnes
of LCE a year in a first phase, at an estimated production cost
among the most competitive in this industry. In Argentina, the
investment would amount to €525m3 over a 3-year period.
Final investment decisions may be made once the
financing has been obtained, at the earliest in Q4 2019.
Christel Bories, Eramet Chairman and CEO,
commented: "In Gabon and Argentina, our two projects are conducted
according to a rigorous methodology where each phase is carefully
managed by the internal teams and their partners. I would like to
congratulate them on the quality of the studies and the successful
relationship built with the host communities and public authorities
in the regions involved. In line with the Group's twofold strategic
ambition, increasing cash generation and diversifying our business
portfolio, it is also crucial that these projects reflect our
ambition as a responsible and contributive corporate citizen."
Calendar
24.07.2019: Publication of 2019 half-year results
25.07.2019: Webcast and presentation of 2019 half-year
results
23.10.2019: Publication of 2019 third-quarter sales
ABOUT ERAMET
Eramet, a global mining and metallurgical group,
is a key player in the extraction and valorisation of metals
(manganese, nickel, mineral sands) and the elaboration and
transformation of alloys with a high added value (high-speed
steels, high-performance steels, superalloys, aluminium and
titanium alloys).
The Group supports the energy transition by
developing activities with high growth potential. These include
lithium extraction and refining, and recycling.
Eramet positions itself as the privileged
partner of its customers in sectors that include carbon and
stainless steel, aerospace, pigments, energy, and new battery
generations.
Building on its operating excellence, the
quality of its investments and the expertise of its employees, the
Group leverages an industrial, managerial and societal model that
is virtuous and value-accretive. As a contributive corporate
citizen, Eramet strives for a sustainable and responsible
industry.
Eramet employs around 13,000 people in 20
countries with sales of approximately €4 billion in 2018.
For further information, go to
www.eramet.com
INVESTOR
CONTACT Executive VP Strategy and Innovation -
Investor Relations Philippe GundermannT.
+33 1 45 38 42 78 Investor Relations Manager
Sandrine Nourry-DabiT. +33 1 45 38 37 02
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PRESS
CONTACT Communications Director
Pauline Briand T. +33 1 45 38 31 76
pauline.briand@eramet.com Image 7
Marie ArtznerT. +33 1 53 70 74 31 | M. +33 6 75 74
31 73martzner@image7.fr |
1 Seaborne market
2 In 2019 value
3 In 2019 value and based on a €/USD exchange rate of 1.13 for
2019
- CP Projets Eramet Juin 2019 EN VF