Lepidico Granted Detailed Planning Approval for UAE Chemical Plant

In a significant development for Lepidico Ltd (ASX:LPD), the company has announced that it has been granted Detailed Planning Approval for its Phase 1 lithium chemical plant in the United Arab Emirates (UAE). The approval was granted by Abu Dhabi Ports Group (ADP), marking an important milestone for the project.

The Detailed Planning Approval allows Lepidico to commence certain site works and submit approval applications to other regulators. It also paves the way for building permit applications to be made. The company has already completed detailed design for non-process infrastructure and is ready to include it in the first building permit application.

Once finance is in place, the major mechanical equipment vendors will complete their respective workstreams, allowing for the staged detailed design of the process plant. This will enable the remaining building permit applications to be made, keeping the project on track.

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The Phase 1 Project is an integrated mine, concentrator, and chemical plant development with strong investment fundamentals. The Base Case unlevered NPV8% for the project is estimated at US$452M (A$675M), with an Internal Rate of Return (IRR) of 41% (ASX Announcement, Phase 1 Economics Updated & Improved, 22 November 2022).

The chemical plant will have a processing capacity of 56,700tpa (dry basis) of lithium mica/phosphate concentrate, producing 5,600tpa of lithium hydroxide. The average annual lithium hydroxide output is projected to be 4,350/t, with the opportunity for optimisation and higher output once in production.

What sets Lepidico's Phase 1 Project apart is its ability to produce four valuable alkali metal streams, including lithium, caesium, rubidium, and potassium. All these metals are designated as Critical Minerals by the U. S. Government. This is made possible by Lepidico's proprietary process technology, L-Max®, coupled with lepidolite as the mineral feed source. The company's sustainable and efficient approach sets it apart from other lithium projects, eliminating the costly and potentially problematic production of sodium sulphate.

Joe Walsh, the Managing Director of Lepidico, expressed his appreciation for the cooperation and support shown by Abu Dhabi Ports Group in the development of the Phase 1 Project. He stated, "Granting of the Detailed Planning Approval by ADP is a further essential milestone in the progress of the Phase 1 Project. "

Lepidico is now focused on securing financing for the project and achieving other key milestones. The Phase 1 Project represents an important step towards demonstrating the sustainable production of essential minerals from lepidolite and other mica minerals.

Stay tuned for further updates as Lepidico progresses towards the next phase of its development and production.

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