Perseus Mining 'Frustrated' by Power Supply Failure
A substation malfunction has triggered a major power supply failure at Perseus Mining’s Edikan gold mine in Ghana forcing the company to rethink its plans of achieving 99,000 oz of gold for the second quarter. The Australian company labeled the incident as “extremely disappointing.”
The breakdown of a transformer on June 7 at a government-owned substation located at Edikan caused failure to all three voltage transformers on the circuit, damages to the insulators and several issues with power cables that feed into the Edikan processing plant.
“The availability of grid power to Edikan has been frustrating at recent times. We have been working extremely hard to address the matters that we can control, such as operating performance and operating costs and have, in the past 12 months, made major advances on both fronts,” said Perseus Mining CEO Jeff Quartermaine.
Following the repairs, production was restarted on June 10 after roughly 73 hours of unscheduled downtime.
“As a result, Edikan is required to reduce its power demand in the evenings until GridCo is able to source the replacement parts. GridCo is expected on site during the planned SAG mill maintenance shutdown on June 17 to carry out additional works on the substation,” the company noted.
Perseus Mining Ltd. is headquartered in Subiaco, Australia and operates through three segments: Australia, Ghana and Côte d'Ivoire. The company reported earlier this month it had received $6.7 million as a partial payment of its tax debt of $32.7 million owed to the company by the government of Ghana.
British Lithium Pressured Due To Calls for Electric Cars
The British demand for lithium is set to reach 75,000 tonnes by 2035 as the government works towards their ban on the sale of high-polluting diesel and petrol vehicles within the UK. This comes as automakers worldwide continue to insist on the benefits electric vehicles will have on slowing the rate of climate change.
It is estimated that the UK will require 50,000-60,000 MT of lithium carbonate a year by 2035 for battery production to satisfy government needs. This is assuming production remains at 1.2 million vehicles per year, and the amount of lithium required does not increase.
British Lithium, which hopes to begin constructing a quarry to produce 20,000 MT of lithium carbonate a year in a $400 million investment, are not without competitors, both within the UK and abroad.
Competition For Lithium Rises In Europe
After only five years after its initial launch, Cornish Lithium is setting its sights on becoming a UK powerhouse in mining lithium, aiming to begin commercial production in under four years. Jeremy Wrathall, a former investment banker and current managing director of Cornish Lithium, had the future in mind when founding the company.
“In 2016, I started to think about the electric vehicle revolution and what that would mean for metal demand, and I started to think about lithium,” he said in an interview with AFP. “A friend of mine mentioned lithium being identified in Cornwall, and I just wondered if that was a sort of unrecognised thing in the UK.”
Lithium was first discovered in Cornwall around 1864 and has not been mined again since 1914 when it was produced as an ingredient in fireworks. Now, however, Cornish Lithium is reportedly in the testing stage to see if the metal can be produced commercially to meet the growing demand required for the electric car sector.
Despite Cornwall’s close historic ties to mining lithium, Wrathall insists that the project is purely commercial.
Cornish Mining Revival For Lithium Production
“It’s not a mission that drives me to the point of being emotional or romantic,” he says. “It’s vitally important that we do get this technology otherwise Europe has got no lithium supply.”
The European Commission has also stated their goal to end the sale of new petrol and diesel cars by 2035 to aid the environment. That being said, the majority of lithium extraction currently relies on power provided by environmentally damaging fossil fuels─a slight contradiction.
Alex Keynes, from the Brussels-based lobby group Transport & Environment, is adamant that mining for lithium should be done sustainably.
“Our view is that medium-to-long term, the majority of materials including lithium should come from efficient and clean recycling.
“Europe from a strategic point of view should be looking at securing its own supply of lithium.”
Despite growing competition from abroad, British Lithium Chairman, Roderick Smith, continues to place importance on the mining of lithium within the UK.
“Imagine what the UK economy would look like if we lost our automotive industry,” Smith says. “The stakes are high for the UK.”
Smith expects the UK to compete with other European countries to secure a lithium battery plant in the near future.