Tue, January 31, 2023
A worker at the Nechalacho rare earth mine in the Northwest Territories. The Vital Metals rare earth processing plant in Saskatoon will process rare earth elements from the Nechalacho mine.
(Bill Braden/Vital Metals Ltd., Cheetah Resources Corp. - image credit)
While rare earth minerals are now being touted as a key part of efforts to reduce greenhouse gases, there are environmental concerns in extracting these minerals from the ground, says an expert in environmental considerations around mining.
Demand is growing for rare earth elements — a group of metals and minerals that includes lithium, graphite, nickel, cobalt and copper that are used in batteries for everything from vehicles to smartphones.
Rare earth elements are being prioritized for investments in exploration, production and processing as part of Canada's critical minerals strategy, which was announced last month.
Some of Canada's experience in mining things like gold or potash is now being used to hunt for rare earth minerals, and Saskatchewan is playing a role through the Vital Metals rare earth processing plant in Saskatoon, which is expected to begin production in the next couple of months.
The plant will process rare earth elements from the Nechalacho rare earth mine in the Northwest Territories before shipping the refined product to another facility in Norway.
But Isabelle Demers, the Quebec-based Canada Research Chair in Integration of Environment in the Mine Life Cycle, says while Canada has the technology to mine these minerals, it's different than mining something like gold.
"We definitely need to produce more of these minerals, and ideally we want to produce them in a responsible manner," Demers said in an interview with CBC Saskatchewan's Morning Edition.
"They are very important because up to now they have been mined mostly in China and other countries, and demand was quite low compared to the upcoming demand to produce all those batteries to meet the commitments for climate change adaptation."
Besides the environmental footprint of the mine itself and the waste it produces, there are concerns elements like lithium or strontium could be released into the environment.
"Those [are] rare earths that are already locked into rock, and once exposed to the atmosphere … they could change form and go into a soluble form and into the environment," Demers said.
"Those are elements that we have not seen as much with base-metal mining or gold mining."
Plant draws on Sask.'s mining expertise: manager
At the Saskatoon Vital Metals processing plant, general manager Vincent Laniece said equipment is being assembled and the facility should be up and running in a couple of months.
The plant processes metals and minerals extracted at the Nechalacho mine into a concentrate.
That product will then be shipped to another facility in Norway for the next step, where the rare earth elements will be separated.
Laniece said while the materials are mined in the Northwest Territories, Saskatoon was chosen for the plant site because of the mining expertise in the province, a knowledgeable workforce and supports like reliable transportation systems.
While rare earth minerals are now being touted as a key part of efforts to reduce greenhouse gases, there are environmental concerns in extracting these minerals from the ground, says an expert in environmental considerations around mining.
Demand is growing for rare earth elements — a group of metals and minerals that includes lithium, graphite, nickel, cobalt and copper that are used in batteries for everything from vehicles to smartphones.
Rare earth elements are being prioritized for investments in exploration, production and processing as part of Canada's critical minerals strategy, which was announced last month.
Some of Canada's experience in mining things like gold or potash is now being used to hunt for rare earth minerals, and Saskatchewan is playing a role through the Vital Metals rare earth processing plant in Saskatoon, which is expected to begin production in the next couple of months.
The plant will process rare earth elements from the Nechalacho rare earth mine in the Northwest Territories before shipping the refined product to another facility in Norway.
But Isabelle Demers, the Quebec-based Canada Research Chair in Integration of Environment in the Mine Life Cycle, says while Canada has the technology to mine these minerals, it's different than mining something like gold.
"We definitely need to produce more of these minerals, and ideally we want to produce them in a responsible manner," Demers said in an interview with CBC Saskatchewan's Morning Edition.
"They are very important because up to now they have been mined mostly in China and other countries, and demand was quite low compared to the upcoming demand to produce all those batteries to meet the commitments for climate change adaptation."
Besides the environmental footprint of the mine itself and the waste it produces, there are concerns elements like lithium or strontium could be released into the environment.
"Those [are] rare earths that are already locked into rock, and once exposed to the atmosphere … they could change form and go into a soluble form and into the environment," Demers said.
"Those are elements that we have not seen as much with base-metal mining or gold mining."
Plant draws on Sask.'s mining expertise: manager
At the Saskatoon Vital Metals processing plant, general manager Vincent Laniece said equipment is being assembled and the facility should be up and running in a couple of months.
The plant processes metals and minerals extracted at the Nechalacho mine into a concentrate.
That product will then be shipped to another facility in Norway for the next step, where the rare earth elements will be separated.
Laniece said while the materials are mined in the Northwest Territories, Saskatoon was chosen for the plant site because of the mining expertise in the province, a knowledgeable workforce and supports like reliable transportation systems.
Theresa Kliem/CBC
"We do have all the facilities in Saskatoon for disposing of the waste, for getting the proper contractors for building the plant, and for maintaining the plant," he said.
"If everything goes well and the demand is very strong … there is a very good opportunity that we will expand."
Once up and running the facility is expected to employ 50 to 60 people.
Demers believes the precautions now in place and expertise in Canada mean that when it comes to mining for rare earth elements, we have a better idea of what the impacts will be, and there are already efforts to mitigate them.
"So I believe that we're going to be able to reduce these impacts right from the start and not afterwards, like we did several years ago with the gold mine tailings and all that."
The rare earth elements are needed as society transitions where energy comes from, said Demers.
"What I hope is that we do it responsibly … that we will prevent or mitigate most impacts and minimize those impacts both on the environment, and also on the communities, and that all this development will be done in the most optimal way for everyone," she said.
GM to help Lithium Americas develop Nevada's Thacker Pass mine
By Ernest Scheyder
The GM logo in Detroit, Michigan, U.S.
Jan 31 (Reuters) - General Motors Co (GM.N) will invest $650 million in Lithium Americas Corp (LAC.TO) and help it develop Nevada's Thacker Pass lithium mining project, which holds enough of the battery metal to build 1 million electric vehicles annually.
The deal, announced Tuesday, is the latest by an automaker to lock up supply of the key metal as industry rushes to go green. It gives Lithium Americas a major partner as it tries to develop North America's largest lithium mine, which is mired in a long-running court case.
Shares of Lithium Americas rose more than 14% to close Monday at $25.23. Shares of GM, which on Tuesday unveiled a robust earnings forecast for the year, rose 8.4%.
In a speech to the U.S. Senate on Tuesday, Senator Joe Manchin called the GM investment in Lithium Americas "exciting" and a "tangible result" of the Inflation Reduction Act, which was passed last year.
Lithium Americas aims to extract lithium at Thacker Pass from a large clay deposit, something that has never been done before at commercial scale. The investment marks the second in as many years by the auto giant into novel lithium processes. GM signed a supply deal in 2021 with Controlled Thermal Resources Ltd, which is trying to filter lithium from geothermal brines in California.
GM would supplant China's Ganfeng Lithium (002460.SZ) to become Lithium Americas' largest shareholder. GM has also agreed to buy all the lithium from Thacker Pass when it opens in 2026 - roughly 40,000 tonnes per year.
The deal was in the works for nearly a year and came after rival U.S. lithium companies ioneer Ltd (INR.AX) signd a deal to supply Ford Motor Co (F.N) and Piedmont Lithium Inc (PLL.O) inked a pact to supply Tesla Inc (TSLA.O).
"We wanted the right and holistic parter, rather than a bunch of offtake agreements," Jon Evans, the Lithium Americas chief executive, said in an interview. "It was worth it to wait."
Under the agreement, GM will buy $650 million of shares in Lithium Americas in two equal parts, with the first tranche coming only if Lithium Americas prevails in a court case. A U.S. judge this month said she would rule "in the next couple of months" in the case, which centers on whether former U.S. President Donald Trump erred when he approved the mine just before leaving office in 2021. Evans said the chances of the company losing the case and its permits are "extremely low."
The second tranche of funding would come after Lithium Americas completes a long-planned split, expected later this year, of its North and South American operations.
Lithium Americas raised its budget for the first phase of the Thacker Pass project to $2.27 billion, up from $1.06 billion, reflecting changes to its production plans.
The company plans to build several processing facilities at the site, including a plant to produce 3,000 tonnes per day of sulfuric acid, used to extract lithium from the clay.
Lithium Americas has applied for a loan from the U.S. Department of Energy, which Evans expects to fund a "major component" of the remaining project cost.
Lithium Americas has the support of one Native American tribe, but several other tribes and environmental groups worry it would harm wildlife and water supplies. "If I were GM, I would be asking some hard questions about how the company can remedy the issues at Thacker Pass," said John Hadder of Great Basin Resource Watch, a plaintiff in the court case.
Reporting by Ernest Scheyder in Houston; additional reporting by Nathan Gomes in Bengaluru; Editing by Krishna Chandra Eluri, Mark Porter and David Gregorio
Huge new North American lithium mine closer to reality with GM investment in Lithium Americas
January 31, 2023
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Lithium Americas Corp. LAC-T has completed a $650 million financing and supply agreement with General Motors Co., paving the way for the Canadian lithium developer to build the Thacker Pass lithium mine in Nevada.
The equity financing is subject to Vancouver-based Lithium Americas receiving legal approval to construct the mine.
Once it goes into production in 2026, Thacker is expected to be the largest lithium mine in the U.S., and it should help tremendously to meet North American lithium needs.
The deal also underscores that the big global automakers are increasingly taking stakes in mining companies to ensure access to battery metals in an industry dominated by China.
Under the terms of the agreement, GM GM-N will become the largest shareholder in Lithium Americas and will also be entitled to supply of lithium carbonate to be mined in the first phase of the mine.
Lithium Americas Corp. LAC-T has completed a $650 million financing and supply agreement with General Motors Co., paving the way for the Canadian lithium developer to build the Thacker Pass lithium mine in Nevada.
The equity financing is subject to Vancouver-based Lithium Americas receiving legal approval to construct the mine.
Once it goes into production in 2026, Thacker is expected to be the largest lithium mine in the U.S., and it should help tremendously to meet North American lithium needs.
The deal also underscores that the big global automakers are increasingly taking stakes in mining companies to ensure access to battery metals in an industry dominated by China.
Under the terms of the agreement, GM GM-N will become the largest shareholder in Lithium Americas and will also be entitled to supply of lithium carbonate to be mined in the first phase of the mine.
As part of their respective critical minerals strategies, the United States and Canada are attempting to break away from their dependence on Chinese-controlled lithium.
While lithium supply deals between miners and automakers like Tesla are commonplace, more and more automakers are investing directly in miners to accelerate lithium projects.
GM in October acquired a $69 million equity interest in Queensland Pacific Metals, an Australian cobalt and nickel developer. Stellantis NV acquired a $52 million equity stake in Australian lithium producer Vulcan Energy Resources in June.
Under President Joe Biden’s Inflation Reduction Act, US consumers can receive subsidies of up to $7,500 for the purchase of electric cars assembled in North America. These subsidies motivate automakers like GM to source battery metals from North America. Canada is under pressure to increase Biden’s subsidies and all eyes will be on the upcoming federal budget.
Lithium Americas is set to receive an initial $320 million infusion from GM after a U.S. district court at Thacker Pass made a decision expected later this year.
The balance of the financing will be released after Lithium America separates its operations in the United States and Argentina.
The Argentine business is important to the company, but politically it has caused tension in North America as Chinese company Ganfeng Lithium is a 46.7% joint venture partner in its Cauchari-Olaroz lithium project. Ganfeng, one of China’s largest lithium producers, has invested in the Canadian company since 2017. Ganfeng is also a major shareholder in Lithium Americas, with a stake of around 11 percent.
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