The government of the Czech Republic is said to be in talks about a possible “public-private” deal for lithium mining in the country with foreign-owned domestic mining firm Geomet.
The announcement came as political leaders questioned the granting of exploration rights at the country’s “strategic” Cinovec lithium deposit.
Geomet, founded in 2007 by four Czech geologists, is owned by the Australian- and UK-listed mineral exploration and development company European Metals Holdings Limited (EMH).
The president of ANO Andrej Babis, whose centrist party forms part of the governing coalition, told public service broadcaster Czech Television (CT) he was concerned about a company under foreign control being able to “invest a few tens of millions… to extract our mineral wealth for $80 billion”.
Babis highlighted Geomet’s prospecting for lithium at Cinovec.
However, trade and industry minister Jiri Havlicek (Social Democrat-CSSD), told CT negotiations are now under way with Geomet about how a closer relationship with the government might work at Cinovec.
Havlicek (pictured) said Geomet “has been granted the right to preferential extraction” as part of its exploration licence. However, he said as the minister in charge of the deal, he thought the state should also “act in a collaborative form with the private investor”.
Geomet reportedly told CT it “does not comment on political disputes”. Geomet did not respond to BBB’s request for comment.
In 2012, EMH purchased a 100% interest in the exploration rights to Cinovec, which is 100 kilometres northwest of Prague on the border with Germany.
According to EMH, Cinovec “hosts the largest lithium resource in Europe, and one of the largest undeveloped tin resources in the world”. EMH describes the project as “situated in the heart of Europe, with ready access to end user car makers and companies involved in energy storage”.
EMH said in July 2017 that a preliminary feasibility study undertaken for Cinovec indicated a maiden probable ore reserve of 34.5Mt @ 0.65% Lithium oxide (Li2O). EMH tweeted earlier this month that Europe is “fast becoming THE market for EV’s, batteries and therefore lithium”.
