Lithium project near St Austell paused over financial constraints
Imerys places Cornwall's lithium hub project into care and maintenance
A project aimed at establishing the UK's leading lithium hub in Cornwall has been paused as Imerys British Lithium announces a strategic shift.
The Imerys British Lithium (IBL) project, launched in June 2023, has been placed into a care and maintenance phase, suspending its development due to capital allocation issues and the search for a long-term partner.
Despite the suspension, Imerys holds the project as a valuable asset, underlining the successful scoping study by the IBL team.
Imerys will continue evaluating conditions and opportunities for a potential relaunch, including the future of the pilot plant.
Mark Hewson, head of Imerys in the UK, acknowledged the support from the team and local partners, stating their focus now is on aiding colleagues through this transition.
“This is difficult news for the team and for our local partners who have supported the project in its development journey,” Hewson said.
“While the decision to pause for now is sensible in the current challenging business climate, it in no way diminishes the work done so far by the dedicated IBL team.
“Our immediate focus is supporting our valued colleagues through this necessary transition.”
Alan Parte, Imerys Lithium Projects VP, noted the pause reflects current financial realities but does not question the intrinsic value of the project.
“This was a difficult but necessary decision, reflecting the need to adapt capital expenditure to the reality of what the business can reasonably finance given current headwinds," Parte said.
"This in no way questions the quality of the work carried out by the IBL teams, nor the intrinsic strategic and economic value of the project - as the recent scoping study has demonstrated.
We remain committed to the long-term potential of the British Lithium project, and will monitor closely when it might make sense to relaunch, depending on prevailing market dynamics, pressure on capital expenditure, and potential for external financing.”