Conchas Drills Yield Up to 0.95% Lithium Oxide; $1B Arbitration Looms for Berkeley

Exploration Breakthrough at Conchas

Berkeley Energia Limited has reported encouraging progress in its ongoing exploration for critical minerals in Spain, notably at the Conchas Project near the Portuguese border. Recent drilling has intersected thick zones of lithium and rubidium mineralisation hosted within muscovitic leucogranite at relatively shallow depths. Highlights include intercepts such as 14 metres grading 0.95% lithium oxide and 0.39% rubidium oxide starting from 40 metres depth, and multiple intervals exceeding 0.4% lithium oxide from surface.

This discovery is significant given rubidium’s classification as a critical mineral by the US and Japan, reflecting its strategic importance in advanced technologies spanning defence, aerospace, communications, and renewable energy sectors. Berkeley is advancing preliminary metallurgical test work on diamond core samples to assess recovery potential, with results anticipated in the September quarter of 2025. Concurrently, 3D geological modelling is refining the understanding of mineralisation distribution, potentially expanding the resource footprint.

Legal Arbitration Casts Long Shadow

While exploration advances, Berkeley’s wholly owned subsidiary, Berkeley Exploration Limited, has escalated a high-stakes international arbitration against the Kingdom of Spain. The dispute centers on permitting setbacks for the Salamanca uranium project, where Berkeley alleges violations of the Energy Charter Treaty. The company is seeking preliminary compensation of approximately US$1 billion, underscoring the severity of regulatory challenges faced.

The arbitration process is progressing with the Statement of Claim due in early 2026. Despite the dispute, Berkeley maintains a commitment to constructive dialogue with Spanish authorities, signalling openness to an amicable resolution. This legal backdrop adds complexity to the company’s operational outlook but also highlights the strategic value of the Salamanca Project, which hosts a substantial uranium resource of 89.3 million pounds, predominantly in measured and indicated categories.

Spanish Nuclear Policy Shifts Favor Berkeley

Recent political developments in Spain may prove advantageous for Berkeley’s uranium ambitions. The Spanish Congress approved a non-binding proposal and subsequent bill to reverse the country’s nuclear phase-out policy, aiming to extend the operational life of existing nuclear power plants. This shift follows a major power blackout in April 2025 that reignited debate over energy security and the role of nuclear power in Spain’s energy mix.

Spain’s nuclear plants currently contribute about 20% of the country’s electricity, making nuclear energy a critical component of its low-carbon strategy. Industry stakeholders have called for renegotiation of shutdown agreements, emphasizing nuclear power’s reliability and competitiveness. For Berkeley, these developments could translate into a more favorable regulatory environment for the Salamanca Project, enhancing its long-term viability.

Financial Strength and Sustainability Commitment

Berkeley Energia reports a robust financial position with approximately A$74 million in cash reserves and no debt, providing a solid foundation to support exploration, development, and legal activities. The company continues to prioritize sustainability, having achieved carbon neutrality certifications for multiple years and recently obtaining the “Calculo y Reduzco” seal from Spain’s Ministry for Ecological Transition. These efforts align with Berkeley’s broader commitment to environmental stewardship and social responsibility in the communities where it operates.

Exploration programs at other Spanish projects, including Oliva and La Majada, targeting tungsten, cobalt, and other critical metals, are progressing with permitting processes underway. These initiatives complement Berkeley’s strategic focus on critical minerals essential for the energy transition and advanced technologies.