European Metals Holdings (ASX:EMH) has secured Strategic Project status for its Cinovec lithium project under the European Union’s Critical Raw Materials Act. This designation could expedite the project’s permitting process and open doors to institutional funding.
The European Commission’s recognition highlights Cinovec’s crucial role in the EU’s battery supply chain and its contribution to low-carbon energy objectives. Located in the Czech Republic, the Cinovec project is Europe’s largest hard rock lithium deposit and the fifth largest non-brine deposit globally.
The benefits of this strategic status include streamlined permitting, with a 24-month time frame for mining projects, and a simplified administrative process. It also makes the project eligible for EU funding initiatives like InvestEU and enhances its attractiveness to long-term industrial supply agreements and financing from public and private institutions, including the European Investment Bank.
Keith Coughlan, Executive Chairman of European Metals, called the recognition “a significant milestone,” adding that it boosts confidence in both financing and permitting. A definitive feasibility study for Cinovec is expected by mid-2025, with the Environmental Impact Assessment to follow by the end of the year.
The project is a joint venture between European Metals and Czech utility CEZ, with CEZ holding 51% ownership and European Metals holding 49%. Geomet, the project company, now needs to agree on a binding permitting timeline with the Czech government, in line with the Critical Raw Materials Act (CRMA) requirements.
Pavel Cyrani, Deputy Chairman of CEZ, emphasized the project’s importance for the Ústí nad Labem Region, forecasting the creation of approximately 1,800 jobs, including for workers transitioning from coal-fired plants.
Cinovec is estimated to contain 7.39 million tonnes of lithium carbonate equivalent, spanning measured, indicated, and inferred resources. Its initial probable ore reserve is expected to support 20 years of production at a rate of 22,500 tonnes per annum.
Following this announcement, shares of European Metals are trading 105.88% higher at 35 cents.
Related Topics:
Dollar Rises on Strong U.S. Data and Trump’s Tariff Remarks
Mortgage Repayment or Investing? Finance Expert Reveals $269,331 Difference
Boliden Announces $370 Million Share Issue to Fund Mine Acquisitions
