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AMG approves construction of lithium plant at Mibra project in Brazil

AMG AdvancedMetallurgical Group NV said July 20 that it has approved theconstruction of a lithium spodumene plant at the Mibra lithium-tantalum mine in Brazil as thecompany formally enters the lithium trade market.

AMG Lithium, the company's new segment, will startoperations in the first quarter of 2018 with initial annual production capacityof 90,000 tons of lithium concentrate, which can be expanded to 140,000 tons.

Total capital investment is estimated at approximately US$50million to be incurred primarily in 2016 and 2017.

The company also said that it has completed an affirmativescoping study for the downstream conversion of lithium concentrate into lithiumhydroxide and/or lithium carbonate.

AMG has commissioned Hatch to complete a pre-feasibilitystudy for the construction of a lithium chemical plant with targeted annualproduction of between 14,000 tons to 20,000 tons of lithium carbonateequivalent.