PERTH (CU)_Over the recent years, Australia’s lithium miners with operations in Europe have been finding it tricky to navigate the politics of mining there. Last month, Anglo-Australian mining giant Rio Tinto had its mining permits in Serbia revoked following large public demonstrations demanding the proposed $3.3 billion mine near the city of Loznica, in the western Jadar river valley, be scrapped. Last Vulcan Energy was forced to pause its application for a permit for proposed operations in Germany’s Upper Rhine Valley, amid questions over local support.
This week, Ryan Parkin, CEO of Infinity Lithium, left for Spain, on a mission to resuscitate his company’s plans for a lithium mine in the village of San Jose, after local opposition brought the project to a halt. Parkin has arrived at the European nation with a redrafted plan, which switched from an open pit to underground, while also greening up the refining process. “The first couple of weeks [of this trip] is really focused on local engagement.” he says. “We’re going to be talking with a lot of the major local stakeholders and institutions, business circles, charities, clubs.
Considering the huge automotive industry of Europe, which is racing towards a battery-electric future, one would expect the mining and processing of lithium, which is critical for EV batteries, to be a no-brainer. However, many lithium miners are finding themselves stumbling over stiff local opposition and regulatory red tape. “It’s a bit hypocritical,” one seasoned observer told the Australian Financial Review. “In Europe as a whole they’re willing to consume large quantities of battery metals, but no one wants the mines in their backyard,” he said, adding that “it is almost impossible to get a mine permit in continental Europe”.
Nevertheless, Perth-based lithium miners remain confident that they are able to get their disparate projects over the line. For instance, Vulcan’s CEO Francis Wedin is not too worried since he doesn’t have to get the support from regulator or local communities for an actual mine. His company plans to extract lithium from brine, using geothermal energy plants and then returning the brine to underground.
Meanwhile, Parkin says he has the elements in place, with increased focus on the project’s green credentials. Royalties are another one of his selling points. “You’re looking at potentially tens of millions of euros per annum from a high-value niche product that can serve to improve your water treatment plants, roads, hospitals, schools or anything else in the region,” Parkin said.
He sees his mission in Spain as an opportunity to give the public and the regulators project a reason to change their position on the project. “For these local communities, it takes time for them to adjust their attitudes and understand that this is an opportunity here, now,” he noted. “It’s not something that can be passed over.”
