2nd Apr 2025 11:29
(Alliance News) - Zinnwald Lithium PLC on Wednesday announced that the Saxon State Government "has reaffirmed its strong support" for its German lithium project.
In response, shares in Zinnwald traded 10% higher at 5.80 pence in London on Wednesday.
The Europe-focused developer of the integrated Zinnwald lithium project, in Saxony on the German-Czech border, also recently released the pre-feasibility study and reported that its application for strategic status was unsuccessful.
Zinnwald on Wednesday said that in reaffirming its support for the project, the state government emphasised its strategic significance in securing a sustainable, independent lithium supply.
It said Saxony Economics Minister Dirk Panter highlighted the need to "[reduce] raw material dependence" due to rising international tensions, and "further confirmed that the Saxon government will actively support the project and has designated it a high priority".
Chief Executive Officer Anton Du Plessis said the news "further strengthens our confidence in bringing the Zinnwald lithium project to fruition", adding: "We look forward to continuing our close collaboration with the authorities and stakeholders as we advance our plans to become a key supplier of lithium to the European battery and electric vehicle sectors."
Previously, on Monday, Zinnwald announced the publication of the PFS, which "confirms the technical and financial viability of an integrated mining and processing operation at the 100% owned Zinnwald lithium project".
The study gave the project a pre-tax net present value of EUR3.3 billion at an 8% discount rate, a 23.6% post-tax internal rate of return, and a EUR12.1 billion life of mine post-tax free cash flow.
It also said the project has a maiden ore reserve of 128 metric tonnes grading 4,428 parts per million lithium oxide, with a forecast peak production of 35,100 tonnes per annum lithium hydroxide monohydrate.
This followed Zinnwald's less positive announcement on March 25 that its application for strategic status under the Critical Raw Minerals Act was unsuccessful.
The company was "disappointed" but noted that "this designation does not itself bestow any specific advantage in terms of funding or specific quantifiable assistance with, or acceleration of, established permitting and project approval timelines".
"Despite this outcome, Zinnwald Lithium remains optimistic about its long-term prospects as one of the few near-term, sustainable lithium production projects in Europe with the size of resource that can be a significant contributor to European supply," the company said.
By Emma Curzon, Alliance News reporter
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