Lithium Supply and Markets Conference
Santiago, 27 - 28 January 2009
Keliber Oy – A European entry to the lithium industry
Lars K. Grøndahl, Chairman Keliber Oy & CFO Nordic Mining ASA
Exploration and production of high-end minerals and metals
Nordic Mining ASA | N-0250 Oslo | Norway | Tel +47 22 94 77 90 | Fax +47 22 94 77 01 | Org. no 989 796 739 | [email protected]
Content of presentation
•
Introduction to Nordic Mining
•
Keliber’s lithium project
•
Why lithium production in Europe?
•
Summing up
Introduction to Nordic Mining
Nordic Mining in brief
•
Established:
May 2006
•
Strategic focus:
Exploration and production of high-end
minerals and metals
Pragmatic value chain approach
•
Activities/assets:
Production of anorthosite
Development project for rutile (TiO2)
Development project for lithium (Li2CO3)
Exploration rights (i.a. W, Mo, Ni, PGM)
•
Listed:
September 2007
Oslo Axess (ticker NOM)
•
Shareholders:
Institutional investors
Board and management
Private investors
22%
13%
65%
Anorthosite production – Gudvangen
Gudvangen
Stein AS
•
•
•
•
29 % Al2O3
48 % SiO3
14 % CaO
One of Europe’s largest anorthosite
massifs estimated to more than 500
mill. tons
Current production is 200 - 250,000 tpa
for stonewool and asphalt aggregates
Cooperation with StatoilHydro on use of
CO2 in minerals processing
Goal to produce aluminum feedstock
from anorthosite
Anorthosite
1 tonne
+
CO2
(110 kg)
Alumina
(300 kg)
CaCO3
(250 kg)
Silica
(490 kg)
Titanium feedstock - Engebø rutile project
Global titanium minerals
400
350
Million tons TiO2
300
250
200
150
100
50
0
China
South
Africa
India
Australia
Norw ay
USA
Ukraine
¾
Permits incl. waste disposal Q2-09 (est.)
¾
CAPEX estimated to USD 250-300 million
¾
Production start-up planned in 2013;
operations for 40-50 years
¾
High purity feedstock; 94-96% TiO2
¾
High quality garnet as bi-product
In situe ore reserve: 382 million ton
Mineable: Appr. 200 million ton ore
¾
EU is importing 100% of
titanium feedstock for
pigment production
¾
Engebø is excellently
located with deep sea
harbour facility and
short sailing distance
Zimbabwe
¾
Potential in Ti metal
Management and network
Broad industrial experience
Ivar S. Fossum (50)
CEO
Lars K. Grøndahl (53) CFO
Ottar Nakken (55)
VP Commercial
Mona Schanche (29)
Geologist
Paul I. Nordkyn (62)
VP Mining
operations
Extensive cooperation with
knowledge institutions
•NTNU
•NGU
•NIVA
•GTK
•Outotec
•NGI
•NILU
•University of Oulu
•GBM
•SWECO (NICON)
Prof. Rune B. Larsen
Prof. Geir M. Haarberg
Are Korneliussen
Peter Ihlen
Morten Often
Prof. Jens Skei
Esko Koistinen
Markku Klemetti
Liisa Haavanlammi
Vidar Kveldsvik
Karl Idar Gjerstad
Prof. Ulla Lassi
Alex Mitchell
Carl-Gustav Nars
Keliber’s lithium project
Keliber - project basics
ƒ
Permits:
Granted for mining,
processing and disposal
ƒ
Initial resource:
Länttä; 3 million tons
spodumene ore
ƒ
Additional deposits:
Emmes, Jänislampi
and others with
significant
upside potential
ƒ
Start of production:
18 - 24 months from
construction start-up
ƒ
Investments:
USD 50 – 60 million
ƒ
Capacity:
4,000 tpy lithium
carbonate
ƒ
Bi-products:
Tantalum (Ta2O5)
Quartz-feldspar
Crushed rock
The Länttä spodumene deposit
ƒ
Keliber has mining concession
to Länttä
ƒ
Approx. 50 drill holes of a total
of 5,500 meters
ƒ
Exploration work by GTK
(Geological Survey of Finland)
ƒ
Initial resource estimate
(JORC complient in million
tons):
Measured
Indicated
Inferred
Total
1.70
0.61
0.63
2.95
0.92 wt% Li2O
79 ppm Ta2O5
80.3 wt% quartz-feldspar
Excellent infrastructure;
additional potential towards
depth and length
Ostrobothnia lithium province
Significant adjacent resource potential
awaits further exploration and drilling
Emmes
Ruohojärvi
Jänislampi
Drilled lithium deposit
Identified lithium deposit
Matoneva Vintturi
Peuraneva
Päiväneva
Heikinkangas
Länttä
Nikula
Lithium boulders
Känsäla
Kalavesi facility
Improved production process fully tested in pilot
Mineral process plant
Keliber Oy
Bio gas plant
Lassila & Tikanoja Oyj
ƒ Process and plant design by Outotec and VTT Mineral
ƒ Engineering by SWECO (prev. NICON)
ƒ Training of 28 operators ongoing
OUTOTEC
Lassila&Tikanoja
Project economy
•
•
Cost efficient production
concept
EBITDA positive in first year
of full production
Sustainable and solid EBITDAmargin
140
120
Sales, USD million
•
100
80
60
40
20
•
Additional potential from new
adjacent deposits and product
development
Process plant designed for
future expansion will minimize
additional CAPEX
0
20
08
20
09
20
10
20
11
20
12
20
13
20
14
20
15
20
16
20
17
20
18
20
19
20
20
20
21
•
Sales Länttä, incl bi-products
Salespotential Emmes, excl bi-product
Salespotential Jänislampi, excl bi-products
Illustrative revenue potential with
initial and two additional deposits
High grade lithium
carbonate (>99.9%)
Value potential in the
down stream value chain
Examples of lithium-based materials in
batteries:
Lithium Cobalt oxide
Lithium Manganese oxide
Lithium Nickel-Cobalt-Aluminium oxide
Lithium Iron phosphate
Lithium Hexafluoride
Lithium Titanium Spinel
Nano Lithium Titanat
Why lithium production in Europe?
Lithium adds to the list
COMMISSION RAW MATERIALS INITIATIVE
1) Increase the supply of raw materials from European sources
on a sustainable basis
2) Ensure sustainable and a more transparent supply from
third countries
3) Encourage capacity building in developing countries
4) Encourage greater efficiency in the use of resources
5) Establish an adequate EU knowledge base on raw materials
Li-based initiatives in Europe
•
European producers of mobile tools have been in
the market with Li-ion technology for many years
•
Major European car manufacturers have
comprehensive EV/HEV programs based on Li-ion
technology
•
Several Li-ion battery initiatives for cars and heavy vehicles are
developing:
–
–
–
–
•
France
Germany
UK
Nordic region
Technology development is brought closer to product
development and end-product manufacturing
– Quality
– Safety
– End-product control
Substantial Nordic initiatives; *)
international partnering
Lithium
carbonate
Keliber (FIN)
Advanced
chemicals
Li-batteries
Electric /
hybride
vehicles
OMG (FIN/USA)
Miljø Innovasjon (N) /
Miljøbil Grenland (N) /
Kemira (FIN)
Electrovaya (CDN)
Tata Motors (IND)
European Batteries (FIN) Think(N) /Ener1-Enerdel (USA)
Lithium Balance (DK)
*) Examples only
ElBil (N), Fisker Karma
(FIN/USA)
ETC Battery & Fuel Cells
Volvo (S), Saab (S)
Sweden (S)
Summing up
Condensed message
•
Keliber and Nordic Mining will actively participate in the
European Li-development
•
Significant Li-related initiatives in Europe and in the Nordic
region
•
Solid logic for Li-based industries in Europe
•
Keliber and Nordic Mining are well positioned
– Resource base with significant upside potential
– Efficient and flexible processing methode
– Strong industrial competence base
– Advanced infrastructure
Thank you for your attention!
www.nordicmining.com