British Lithium cleared for Imerys JV

British Lithium Ltd has received clearance for a 20-80% joint venture (JV) with French minerals miner Imerys.

PRODUCTION

The Australian company has been processing lithium carbonate from Cornish granite on Imerys’ land, estimated to have an inferred mineral resources of 161 million tonnes at a grade of 0.54 % lithium oxide.

The target life of mine is more than 30 years with production of 20,000 tonnes of lithium carbonate equivalent per year.

Imerys said that a drilling programme and pre-feasibility study were “in progress”.

The proposed development will include a quarry, a beneficiation plant and a conversion unit “co-located” on Imerys’ brownfield site to produce high-purity lithium.

PARTNERSHIP

The JV sees Imerys contributing its lithium resources, land and infrastructure for the 80% stake while British Lithium retains its bespoke lithium processing technology, technical team and lithium pilot plant for the remaining 20%.

The “strategic partnership” will also benefit from Imerys’ lithium expertise developed through its Emili project in France.

Imerys claims that the project combined with the Emili project would make Imerys “the largest integrated lithium producer in Europe”.

The company said that the transaction had been approved by the UK Government, under the National Security Investment Act protocol.

BRITISH LITHIUM

Private enterprise British Lithium was established in 2017 by Australian chartered accountant Roderick Smith who is the chairman, with his son Andrew Smith as chief executive.

Compared with some other British and Irish junior explorers and developers, the company has published less information about its operations.

Roderick Smith told the BBC in an interview in 2016/17 that he had built five mines in Australia and was the then chief executive of Cominco, investing $50 million in the “largest phosphate deposit in the world” in the Republic of the Congo.

Companies House lists Mr Smith as a director of Cominco from September 2010 to February 2011, and from April to December 2018.

He is also listed as being a director at Hummingbird Resources plc between 2010 and 2012.

Before arriving in England, Mr Smith’s mining interests were in Western Australia.

In 2002, he was reportedly ordered to pay A$2million in damages and to apologise to investor Westgold for misleading information about Precious Metals Australia Ltd (PMA) of which he was executive director.

In 2007 a report from the Procedure and Privileges Committee states that in 2004, Mr Smith paid lobbyists, former Western Australia premier Brian Burke and former cabinet minister in Mr Burke’s administration Julian Grill, a $10,000 retainer (with $250,000 success fee) to try to find out how to reopen vanadium mining tenements at Windimurra near Mt Magnet.

The assets had been sold to and closed by Xstrata, resulting in loss of royalties for PMA.

In 2009, Mr Smith was mentioned in a Corruption and Crime Commission investigation of alleged public sector misconduct in connection with uranium mining tenements at Yeelirrie held by BHP Billiton.

In 2008, he was reported to have resigned from PMA, renamed Windimurra Vanadium Ltd, and planned to move to England.

UK FUNDING

Backed by “international high net worth individuals”, British Lithium previously received £5.2 million from Innovate UK for its operations.

A spokesperson said of the awards: “Innovate UK awards are subject to due diligence and ongoing monitoring.

“Awards are made through a rigorous, transparent and ongoing process, monitored by independent experts.

“Like any grant-based project, this award continues to be assessed to ensure it is meeting agreed business goals.”