Regulatory and Market Risks Loom as Lithium Plus Advances Lei Development
Lithium Plus Minerals reports key regulatory and environmental milestones for its Lei Lithium Development Project, progressing towards a near-term direct shipped ore operation backed by a strategic partnership with Canmax Technologies.
- Mining lease survey completed for Lei Lithium Project
- Supplementary Environmental Report underway with groundwater and socio-economic studies
- Ore sorting and metallurgical tests confirm high-grade lithium potential
- Non-binding offtake MoU with Canmax Technologies supports project finance and sales
- Project targets low capital expenditure direct shipped ore production near Darwin Port
Regulatory Progress Sets Stage for Development
Lithium Plus Minerals Ltd (ASX, LPM) has marked significant progress in advancing its 100%-owned Lei Lithium Development Project in Australia's Northern Territory. The company recently completed the formal mining lease survey, a critical regulatory step, and has initiated a Supplementary Environmental Report (SER) process managed by EcOz Environmental Consulting. This includes groundwater modelling and impact assessments, alongside socio-economic and cultural heritage studies, reflecting a comprehensive approach to environmental and stakeholder considerations.
Strategic Partnership with Canmax Technologies
Central to Lithium Plus's commercial strategy is its partnership with Canmax Technologies, a leading Chinese lithium converter. Under a non-binding memorandum of understanding, Canmax has rights to purchase 50% of the project's direct shipped ore (DSO) and spodumene concentrate production, with options for additional volumes. The agreement includes a profit-sharing pricing structure and Canmax’s commitment to support project financing, which could reduce Lithium Plus’s capital burden and accelerate cash flow generation.
Technical Validation and Optimisation
Technical studies bolster the project's viability. Ore sorting trials by Stark Resources GmbH demonstrated a 51% uplift in lithium grade with minimal iron contamination, suggesting efficient waste rejection and strong recovery rates. Metallurgical test work confirmed high lithium recoveries through flotation processes, indicating the ore’s amenability to beneficiation. These results underpin the proposed low-capital DSO operation, which involves crushing and screening ore on-site before transport to Darwin Port for export and processing at Canmax’s Chinese facility.
Resource Base and Development Outlook
The Lei deposit hosts a Mineral Resource Estimate of 4.09 million tonnes at 1.43% lithium oxide, predominantly in the inferred category, supporting a scalable development model. The mining lease application covers 295 hectares, including additional prospective lithium zones not yet incorporated into the resource estimate. Lithium Plus is advancing mine design, detailed scheduling, and cost assessments, aiming to position the project for rapid development aligned with anticipated lithium market recovery.
Looking Ahead
With regulatory approvals progressing in tandem with technical and commercial de-risking, Lithium Plus is methodically preparing for a development decision. The company’s focus on environmental responsibility, strategic partnerships, and operational efficiency could enable it to capitalise on improving market conditions and deliver shareholder value in the near term.
Bottom Line?
Lithium Plus’s steady regulatory and technical advances position Lei for a timely development decision amid a recovering lithium market.
Questions in the middle?
- When will Lithium Plus receive final environmental approvals to commence production?
- How firm are the terms and volumes under the Canmax offtake agreement given its non-binding status?
- What are the projected capital and operating costs for the proposed DSO operation?
