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AMG: lithium met de laagste kostprijs

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DeZwarteRidder
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AMG bouwt lithiumfabriek in Brazilië

Gepubliceerd op 20 jul 2016 om 07:41 | Views: 6.017 | Onderwerpen: Brazilië

AMG 04 nov
16,61 0,00 (+0,48%)

AMSTERDAM (AFN) - Metalenspecialist AMG bouwt een fabriek voor de productie van lithium bij zijn Mibra-mijn in Brazilië. Met de bouw is een investering van 50 miljoen dollar gemoeid, zo liet AMG woensdag weten.

De productie bedraagt aanvankelijk 90.000 ton per jaar en kan worden uitgebreid tot 140.000 ton. De productie moet in het eerste kwartaal van 2018 beginnen. AMG zet met lithium een nieuw bedrijfssegment op.

Het bedrijf maakte verder bekend dat het een verlenging en vergroting van de kredietfaciliteit heeft afgesloten. De nieuwe faciliteit is 400 miljoen dollar waard met een looptijd tot juli 2021. De oude faciliteit had een omvang van 320 miljoen dollar en een looptijd tot mei 2018. Volgens AMG heeft de nieuwe financieringsovereenkomst betere voorwaarden.
DeZwarteRidder
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AMG verstrekt order aan Fins Outotec

Gepubliceerd op 26 okt 2016 om 18:19 | Views: 2.323

AMG 04 nov
16,61 0,00 (+0,48%)

AMSTERDAM (AFN) - Advanced Metallurgical Group (AMG) heeft een opdracht verstrekt aan het Finse Outotec voor de bouw van een lithiumconcentraatfabriek in Brazilië. Dat werd woensdag bekendgemaakt zonder het afgeven van financiële details.

Outotec gaat de fabriek opleveren bij de Mibra-mijn in Brazilië. De jaarlijkse productiecapaciteit van die fabriek, die operationeel moet zijn in de eerste helft van 2018, zal 90.000 ton lithiumconcentraat zijn. Op termijn kan dat worden vergroot.
DeZwarteRidder
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'AMG profiteert van hoge prijs lithium'

Gepubliceerd op 10 mrt 2016 om 10:07 | Views: 4.736

AMG 04 nov
16,61 0,00 (+0,48%)

AMSTERDAM (AFN) - AMG zal op den duur in staat zijn om te profiteren van de huidige hoge prijzen van lithium. Dat schrijft ING donderdag in een rapport over de producent van hoogwaardige metalen.

AMG maakte eerder op donderdag bekend dat het een zogeheten pre-haalbaarheidsstudie heeft afgerond, waarmee de winning van lithium in Brazilië een stap dichterbij is gekomen. Financiële details zijn daarbij niet bekendgemaakt en ook een tijdsspanne ontbreekt.

ING gelooft desondanks dat AMG zal gaan profiteren van de stappen die zijn gezet. De bank wijst daarbij naar de toenemende vraag naar lithiumhydroxidemonohydraat en lithiumcarbonaat, stoffen die veel worden gebruikt in oplaadbare batterijen en accu's.

ING handhaaft zijn koopadvies op AMG met een koersdoel van 10 euro. Het aandeel AMG koerste donderdag omstreeks 10.00 uur 1,3 procent hoger op 8,82 euro.
DeZwarteRidder
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AMG Advanced Metallurgical Group N.V. Approves Lithium Project

07/20/2016

Key Highlights

AMG's Supervisory Board approves project to construct a lithium concentrate (spodumene) plant at the Mibra mine in Brazil, with an initial annual production of 90,000 tons, expandable to 140,000 tons
Production is expected to commence in the first quarter of 2018 and capital investment is estimated at approximately $50 million
AMG expects to be the low cost producer of lithium concentrate globally
Pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE), will be completed in the fourth quarter 2016

AMSTERDAM, Netherlands, July 20, 2016 (GLOBE NEWSWIRE) -- (Regulated Information) -- AMG Advanced Metallurgical Group N.V. ("AMG", EURONEXT AMSTERDAM: "AMG") is pleased to announce that the Supervisory Board of AMG has approved the construction of a lithium concentrate (spodumene) plant at the Mibra mine in Brazil.

"Following a number of years spent on preparatory activities, including the operation of a pilot plant at AMG's Mibra mine in Brazil, we are delighted to announce our entrance into the lithium market," said Dr. Heinz Schimmelbusch, CEO and Chairman of the Management Board. "The recovery of lithium-bearing minerals from existing tailings will enable AMG to be a cost leader in the lithium market, creating significant value for our shareholders."

AMG's new business segment, AMG Lithium, will commence operations in the first quarter of 2018, with an initial annual production capacity of 90,000 tons of lithium concentrate, expandable to 140,000 tons. Total capital investment is estimated at approximately $50 million and will be incurred primarily in 2016 and 2017.

The recovery of lithium-bearing minerals from existing tailings, a by-product of AMG's tantalum operations in Brazil, is expected to result in a cost-leading production process.

This announcement follows the press release distributed on March 10, 2016, in which AMG announced that Outotec completed an affirmative prefeasibility study for the recovery of lithium-bearing mineral Spodumene.

In addition, AMG has completed an affirmative scoping study for the downstream conversion of lithium concentrate into lithium hydroxide and/or lithium carbonate. As part of this analysis, AMG performed a global site location study to determine the best location for a new lithium chemical plant.

Following the successful completion of the scoping and location studies, AMG has commissioned Hatch to complete a pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE).

The previously published Technical Report on Mineral Resources states that AMG's Mibra mine has 14.7 million tons of measured and indicated resources, including tantalum, niobium, tin and lithium. AMG estimates that the current life of the mineral resource is approximately 18 years, based upon current production levels.

Chemical grade lithium is primarily used in lithium-ion batteries and in the fine-chemical industry.

Further details of AMG's lithium project can be found on AMG's website under www.amg-nv.com/Investors/Presentations.

About AMG

AMG is a global critical materials company at the forefront of CO2 reduction trends. AMG produces highly engineered specialty metals and mineral products and provides related vacuum furnace systems and services to the transportation, infrastructure, energy, and specialty metals & chemicals end markets.

AMG produces aluminum master alloys and powders, titanium alloys and coatings, ferrovanadium, natural graphite, chromium metal, antimony, tantalum, niobium and silicon metal. AMG Engineering designs and produces vacuum furnace equipment and systems used to produce and upgrade specialty metals and alloys for the transportation, automotive, infrastructure, and energy markets.

With approximately 3,000 employees, AMG operates globally with production facilities in Germany, the United Kingdom, France, Czech Republic, United States, China, Mexico, Brazil and Sri Lanka, and has sales and customer service offices in Russia and Japan (www.amg-nv.com).
DeZwarteRidder
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Lithium

The market for lithium, a reactive metal with a high heat capacity, is growing rapidly, driven by a rising need for renewable energy (grid storage), strong demand for electric vehicles (EVs), and robust growth in smartphones, tablets, and wearables.

In addition to demand for lithium for batteries, non-battery demand includes a wide variety of applications, including ceramics, specialty chemicals, coolants, and in the life sciences.

As a global critical materials company at the forefront of CO2 reduction trends, AMG is entering the lithium market with an investment of approximately $50 million in the construction of a lithium concentrate (spodumene) plant at its existing Mibra mine in Brazil.

With mining infrastructure already in place at Mibra, and with the recovery of lithium bearing materials from existing and future tailings (by-products of AMG’s profitable tantalum operations at the mine), AMG expects to be the low cost producer of lithium concentrate globally.

Operations are expected to commence in the first quarter of 2018, with planned production of 90,000 MT per year, and an option to expand to 140,000 MT. AMG has been operating a pilot lithium concentrate plant at the site since 2010.

Additionally, after completing affirmative scoping and site locations, AMG has commissioned a pre-feasibility study for the construction of a lithium chemical plant for the downstream conversion of lithium concentrate into lithium hydroxide monohydrate and/or lithium carbonate (chemical grade lithium). Chemical grade lithium is primarily used in batteries and in the fine chemical industry.

Planned production is 14,000 MT of lithium carbonate equivalent (LCE) per year, expandable to 20,000 MT. The pre-feasibility study will be completed in the fourth quarter of 2016.
DeZwarteRidder
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Lithium prices tipped to rise 20 per cent by 2017 on demand for electric cars
Peter Ker

Prices for lithium are forecast to rise strongly in the next two years, with widespread adoption of electric cars tipped to be a game changer for the third element on the periodic table.

While most demand for lithium carbonate comes from industrial companies producing ceramics and glass, Citi analyst Matthew Schembri believes demand will rise significantly when electric vehicles become mainstream and need the commodity for lithium-ion batteries.

Citi is very bullish about electric cars, and forecasts production of pure electric models (not hybrids) like the Nissan Leaf or the Tesla Model S to rise from about 150,000 in 2015 to about 290,000 in 2016.

By 2020, Citi expects 1.04 million electric cars to be in production, implying sevenfold growth over five years.

Panasonic and Tesla have reportedly reached a deal that will help create a new lithium-ion battery factory in the US.

In an extensive study of what the boom in electric cars will mean for lithium carbonate markets, Mr Schembri said demand for the commodity would rise almost 65 per cent over the next five years.

"The mass adoption of pure electric vehicles such as the Tesla Model S or the Nissan Leaf would be a boom to the lithium market," he said.

Electric vehicles account for about 6 per cent of lithium carbonate demand but would be 30 per cent of demand by 2020 under Mr Schembri's numbers.

Mr Schembri noted that prices for lithium carbonate had already risen from $US4900 per tonne to $US5900 per tonne over the past 13 months, and he predicts prices will rise a further 20 per cent before a wave of new production in 2017 or 2018.

"We continue to see a tight market out to 2017, with prices rising to $US 7000 per tonne before new production is incentivised and dampens prices," he said.

"A strong demand profile does ensure prices remain at a nominal $US6000 per tonne for the rest of the decade."

As with most commodities, Australia is likely to supply lithium to global markets. This is likely to come from the mining and processing of spodumene, a hard rock lithium-bearing mineral found in Western Australia and elsewhere.
Demand for lithium could soar on the back of modern battery technology.

Mr Schembri said spodumene mining was typically a more expensive but faster approach compared with the traditional sourcing of lithium, which is by extracting lithium-rich brine concentrate from beneath salt lakes.

Mr Schembri said the brine extraction model was most commonly available in South American nations such as Argentina and Chile, which were likely to dominate the global supply of lithium longer term.

But in the near term, rising demand offers an opportunity for spodumene miners to get a foothold in the market while prices are strong.

ASX-listed companies seeking to produce a lithium concentrate in Australia through mining spodumene include Neometals, Galaxy Resources and Pilbara Minerals.

Shares in all three have either doubled or trebled in the past three months.

While not covered in the Citi report, graphite is also required for lithium-ion batteries, and several ASX-listed graphite producers have seen their share prices boom in recent years, with Syrah Resources the most notable example.

Other ASX-listed graphite producers include Valence Industries (which is already producing from its Uley project in South Australia), Tanzania-focused Kibaran Resources, Archer Exploration and Ardiden Limited.
DeZwarteRidder
0
AMG plans to get into the (profitable) lithium business

Lithium is one of the hottest commodities in the world right now, as most producers and wannabe producers are betting on a supply shortage by the end of this decade. AMG wants to take advantage of this and has recently confirmed its board of directors has approved the plan to build a spodumene plant at its already operating Mibra mine in Brazil.
Miba is effectively a tantalum mine, but the waste rock which is being ‘dumped’ in the tailings facility contains a pretty decent average lithium grade, and AMG claims it will be able to upgrade this to commercial grade lithium ore, also called spodumene, which has an average grade of 6% Lithium. As no mining activities will need to take place (those expenses have already been incurred during the tantalum mining phase), the average production cost will be pretty low, and AMG thinks it will be able to produce the spodumene at a total cost of just $127/metric tonne.

Source: company presentation

That’s fantastic and once we throw in some sustaining capital expenditures and transportation expenses, we would feel comfortable with an all-in cost of $225 per tonne of spodumene. As the current spodumene price is approximately $600/t. Let’s be conservative and estimate the operating margin to be $300/t, and using the first scenario of a 90,000 tpa operation would result in an annual net operating cash flow (pre-tax) of US$27M.

That’s not bad at all if you know the initial capex is just $50M, resulting in a payback period of just 2-2.5 years. And it won’t end there, as AMG is currently working on a pre-feasibility study and a flow sheet to build its own plant to produce lithium carbonate. Although the exact economics of this phase 2 are still unknown, this could potentially add a lot of value, as the transportation costs will be reduced rather sharply. The jury’s out on the LCE-plant, but the spodumene plans make a lot of sense. After all, it’s creating value out of waste rock that has previously been discarded.

Investment thesis

AMG is currently generating approximately $45M per year in free cash flow but this could easily increase to $60M once the spodumene project is being brought into production in 2018. AMG currently has no net debt, and the existing cash flows could be sufficient to fund all expansion capex as well.
AMG Metallurgical Group definitely is a company to keep an eye on!

Disclosure: the author has no position in AMG, but will very likely write some put options in the very near future

www.comcap.media/market-trends/185-ad...
DeZwarteRidder
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De laagste kostprijs in beeld:

De hoogste kostprijs is ca 150% hoger dan AMG, dus ook als de lithiumprijs flink gaat dalen, kan AMG nog winst maken.
Dit is absoluut uniek voor een beginner in de lithiumbusiness.
Bijlage:
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AMG has commissioned Hatch to complete a pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE).

Dit is voor fase 2 van het lithium project. Eind november zou deze study afgerond zijn en horen we hopelijk wat meer. Ik ben vooral benieuwd naar de lokatie van de fabriek. Lokatie zegt waarschijnlijk wat over de toekomstige klanten van lithium carbonate.
DeZwarteRidder
0
quote:

pat72 schreef op 20 november 2016 18:46:

AMG has commissioned Hatch to complete a pre-feasibility study for the construction of a lithium chemical plant, with targeted annual production of between 14,000 tons and 20,000 tons lithium carbonate equivalent (LCE).

Dit is voor fase 2 van het lithium project. Eind november zou deze study afgerond zijn en horen we hopelijk wat meer. Ik ben vooral benieuwd naar de lokatie van de fabriek. Lokatie zegt waarschijnlijk wat over de toekomstige klanten van lithium carbonate.
Ik denk dat alle fabrieken gewoon vlakbij de mijn in Brazilië komen. De klanten zitten overal in de wereld.
[verwijderd]
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De fabriek komt in de US of Europa. Als je naar de conference call van mei luistert dan zou je dat weten. Tijdens deze call is ook eind november genoemd.
DeZwarteRidder
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quote:

pat72 schreef op 20 november 2016 18:57:

De fabriek komt in de US of Europa. Als je naar de conference call van mei luistert dan zou je dat weten. Tijdens deze call is ook eind november genoemd.
We zullen het zien; ik vind het in ieder geval niet slim om zo'n fabriek te bouwen in een land met dure arbeid.
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quote:

DeZwarteRidder schreef op 20 november 2016 19:02:

[...]

We zullen het zien; ik vind het in ieder geval niet slim om zo'n fabriek te bouwen in een land met dure arbeid.
Dat is een vreemde redenering. De arbeidskosten in een chemische fabriek zijn doorgaans maar zo'n 10% van de totaalkosten om de plant te runnen. Dat is te overzien. Bovendien heb je goed geschoold personeel nodig en dat mag wat mij betreft goed betaald worden.

Het is logisch om de plant of in Amerika of in Europa neer te zetten. Dichtbij een grote afnemer die leveringsbetrouwbaarheid zal willen. Denk dat het best wel eens Europa zou kunnen worden gezien de plannen die de Duitse automakers aan het maken zijn voor de productie van elektrische auto's. Hopelijk kan AMG lange termijn leveringscontracten sluiten en dan is een zeer winstgevende business case zo gemaakt.
DeZwarteRidder
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quote:

Bobo schreef op 21 november 2016 12:12:

[...]

Dat is een vreemde redenering. De arbeidskosten in een chemische fabriek zijn doorgaans maar zo'n 10% van de totaalkosten om de plant te runnen. Dat is te overzien. Bovendien heb je goed geschoold personeel nodig en dat mag wat mij betreft goed betaald worden.

Het is logisch om de plant of in Amerika of in Europa neer te zetten. Dichtbij een grote afnemer die leveringsbetrouwbaarheid zal willen. Denk dat het best wel eens Europa zou kunnen worden gezien de plannen die de Duitse automakers aan het maken zijn voor de productie van elektrische auto's. Hopelijk kan AMG lange termijn leveringscontracten sluiten en dan is een zeer winstgevende business case zo gemaakt.
Vlakbij de mijn in een land met een zwakke valuta en lage kosten is volgens mij de beste plek.
Het eindproduct is zeer licht en makkelijk te vervoeren naar overal in de wereld.
[verwijderd]
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Welja, nog eens miljoenen elektrische auto's van VW er bij. Waar moeten ze al dat lithium vandaan halen:-)

Verder brengt Volkswagen de komende tijd een groot aantal nieuwe SUV's naar buiten en wordt in 2021 begonnen met de productie van elektrische auto's in Noord-Amerika om zo een leidende speler in die regio te worden. In 2025 moeten er jaarlijks 1 miljoen elektrisch aangedreven Volkswagens worden verkocht. Binnen de gehele groep, met ook merken als Audi, Skoda en Seat, moeten dat er dan 3 miljoen per jaar zijn.

www.telegraaf.nl/dft/nieuws_dft/27082...
bogie
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[quote alias=Bobo id=9726385 date=201611221858]
Welja, nog eens miljoenen elektrische auto's van VW er bij. Waar moeten ze al dat lithium vandaan halen:-)

Verder brengt Volkswagen de komende tijd een groot aantal nieuwe SUV's naar buiten en wordt in 2021 begonnen met de productie van elektrische auto's in Noord-Amerika om zo een leidende speler in die regio te worden. In 2025 moeten er jaarlijks 1 miljoen elektrisch aangedreven Volkswagens worden verkocht. Binnen de gehele groep, met ook merken als Audi, Skoda en Seat, moeten dat er dan 3 miljoen per jaar zijn.

www.telegraaf.nl/dft/nieuws_dft/27082...
[/quote

er is nog lithium in overvloed ,

Lithiumschaarste?
De populairste oplaadbare batterij is de lithium-ion-batterij, ook voor elektrische auto’s. Bij een sterke stijging van het gebruik zou de wereld afstevenen op een lithiumtekort, volgens sommigen. Peter Notten vindt het probleem wat overdreven. “Ik heb eens uitgerekend dat we met de huidige reserves een miljard auto’s (!) met een bescheiden batterij van 10 kWh kunnen uitrusten”, zegt hij. “En dan hebben we nog niet eens veel moeite gedaan voor het vinden van nieuwe reserves. Het is overigens wel verstandig om naar alternatieven voor lithium te kijken, en die zijn er.”
DeZwarteRidder
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Zinc heats up, prices hit 9-year high

Investors interested in the base metals sector have spent much of 2016 focusing on lithium and (more recently) cobalt. As the lithium-ion battery market continues to rapidly expand, demand for these metals has spiked along with it – and prices are rising.

The price for lithium carbonate has more than doubled over the past year, going from roughly $6,000 per metric tonne up to well over $13,000/tonne. The price of cobalt is up roughly 50% from its 52-week low, to over $13/lb. With highly inelastic supply, many commentators expect the cobalt market to begin surging more rapidly.

However, metals investors would be well-advised to turn their attention to zinc. Zinc is one of the most-versatile of metals, with a large number of wide-ranging industrial applications:

Most zinc is used to galvanise other metals, such as iron, to prevent rusting. Galvanised steel is used for car bodies, street lamp posts, safety barriers and suspension bridges.

Large quantities of zinc are used to produce die-castings, which are important in the automobile, electrical and hardware industries. Zinc is also used in alloys such as brass, nickel silver and aluminium solder.

Zinc oxide is widely used in the manufacture of very many products such as paints, rubber, cosmetics, pharmaceuticals, plastics, inks, soaps, batteries, textiles and electrical equipment. Zinc sulfide is used in making luminous paints, fluorescent lights and x-ray screens.

Zinc is a very abundant mineral, easily recyclable, and current global production has exceeded 11 million tonnes per year. Yet despite the plentiful supply, the zinc market is headed for “the biggest shortage in supply of mined concentrate on record”, according to Dina Yu, a Beijing-based analyst with CRU Group. China’s smelters produce more than 40% of the world’s supply of zinc.

The cause of the supply-crunch is the previous plunge in zinc prices last year, when the price of zinc collapsed by over 25%. This led to several zinc producers including Glencore cutting back on their output. The result of this reduced mine output is a deficit in the zinc market estimated to reach 910,000 tons this year, according to data from the SMM Information & Technology Show.

image: www.stockhouse.com/getattachment/94d8...
Click to enlarge

The bottleneck in mine supply is now impacting the smelting industry, which is expected to be forced to cut production because of the lack of raw material. This market imbalance has led to smelting fees for zinc hitting their lowest level in two years. Because of these supply woes, the price of zinc has spiked to its highest level since October of 2007, topping $1.30/lb. This makes zinc the best performer this year among the 22 raw materials in the Bloomberg Commodity Index.

While much of the current strength in the zinc market is attributable to shuttered production, over the longer term a new driver may appear in this market: new battery demand. Zinc-carbon batteries were the old dry-cell batteries which were widely used until the current generation of hi-tech, lithium-ion batteries displaced this older technology.

Now some metals analysts are suggesting that next-gen, zinc-based technology could soon be ready to challenge lithium-based energy storage technology, at least in some facets of the global battery market. New Jersey-based Eos Energy Storage claims it can deliver power from zinc-based systems at $160 per kilowatt hour, less than the cost for producing power from lithium-based technology.

While zinc and the zinc-mining industry hasn’t captured a fraction of the attention currently being heaped upon lithium and cobalt, this versatile metal has quietly surpassed these sexier markets in terms of 2016 price-growth. With new research underway which could allow zinc to recapture much of its previous market share in the global energy storage market, zinc may remain upon the radar of metals investors for years to come.

Read more at www.stockhouse.com/news/newswire/2016...
DeZwarteRidder
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Benchmark Minerals: 12 ‘gigafactories’ in aanbouw

Benchmark Mineral Intelligence is gespecialiseerd in grondstoffenmarktonderzoek. In een publicatie over de markt voor grafiet, veel gebruikt als electrode in lithiumaccu’s, ziet Benchmark een groei van 200 procent voor de komende vier jaar. In de nabije toekomst voorziet de marktanalist de bouw van twaalf grootschalige accufabrieken. Daarvan is Tesla’s gigafabriek de grootste, maar Benchmark verwacht de meeste vraag naar accugrafiet in China. De investeringen in nieuwe accufabrieken tot 2020 gaan volgens Benchmark de $ 12 mrd voorbij.

Imagecredit: Sonnen
DeZwarteRidder
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Galaxy:

120,000 tonnes of lithium concentrate sold for 2017 delivery at US$905/t for 6% Li2O

www.galaxylithium.com/media/announcem...

Deze prijs is ca 50% hoger dan de eerder genoemde 600 USD, maar ik weet niet of dit vergelijkbaar concentraat is.
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