Tesla to minimize environmental impact
Issued Capital: 150,526,976
LONDON, ON, April 4, 2014 /PRNewswire/ - Fortune Minerals
Limited (TSX: FT) (OTCQX: FTMDF) ("Fortune" or the "Company")
(www.fortuneminerals.com) is pleased with the recent reports that
Tesla Motors Inc. ("Tesla") plans to source its critical raw
materials as close as possible to its planned $5 billion lithium-ion battery "gigafactory" in
the southwest U.S. - with a preference for North America suppliers to minimize
environmental impacts and material costs. Fortune's proposed
refinery near Saskatoon in western
Canada, the Saskatchewan Metals
Processing Plant ("SMPP"), will be constructed in the community of
Langham, and will stand out as a
North American facility dedicated to the production of cobalt
chemicals needed to manufacture rechargeable batteries used in
electric vehicles like Tesla's as well as in portable electronic
devices. The Tesla Model S uses Nickel Cobalt Aluminum cathode
chemistry from Panasonic containing 9% cobalt by weight.
Lithium-ion batteries using other cathode chemistries can contain
up to 60% cobalt by weight.
The SMPP will also produce gold, bismuth metals and chemicals,
and byproduct copper. Notably, the bismuth market is experiencing
significant demand growth as a non-toxic, environmentally safe
replacement for lead in a number of products, including automotive
anti-corrosion coatings, windshield frits, pearlescent paints and
electronic solders. Fortune envisions that the SMPP could also be
expanded to include battery and metal recycling as a future
business opportunity in Langham.
Tesla spokesperson, Liz
Jarvis-Shean, has noted that the electric car manufacturer
will look for North American suppliers of cobalt and other
materials needed to "establish a supply chain that is local and
focused on minimizing environmental impact." She further commented,
"One of the key reasons is to more completely consider the total
environmental impact of the supply chain while significantly
reducing battery cost. Our goal is to build batteries with the
lowest environmental impact possible and that necessitates looking
at where the raw materials come from and how much impact there was
in mining, processing and transporting them."
"Tesla's approach is a positive development for the future of
our SMPP," said Mike Romaniuk,
Fortune's Vice President Operations and Chief Operating Officer.
"Our NICO gold-cobalt-bismuth copper project comprised of a mine
and mill in the Northwest
Territories and the processing facility in Saskatchewan will make us a vertically
integrated North American supplier of the cobalt chemicals needed
by battery manufacturers like Tesla."
Cobalt is a critical metal used in a number of important
metallurgical and chemical products, but susceptible to supply
concerns with more than 60% of mine production currently sourced
from the Democratic Republic of the
Congo ("DRC"). China is
currently responsible for approximately 40% of refined cobalt
production, primarily from DRC material.
"Our company has been very aware of the pending proliferation of
electric vehicle use. It is gratifying to hear Tesla's recent
announcement confirming Fortune's NAFTA advantage as a future
Canadian supplier of the cobalt chemicals required by the
automotive and rechargeable battery industries", said
Romaniuk. "We expect the economic impact of this demand to create
over 100 new jobs in surrounding communities and millions in other
spin-off benefits for the area."
Fortune has already received its environmental assessment
approvals for the NICO mine and concentrator in the Northwest Territories ("NT") as well as the
refinery in Saskatchewan. Earlier
this week, the Company announced the results of an updated
Feasibility Study for the project by Micon International Limited
(see Fortune news release, dated April 2,
2014) that is being used to advance negotiations with
potential strategic partners and their banks. The development would
make the Company very well positioned to become a reliable North
American source of cobalt and bismuth to the automotive industry
with a very valuable gold co-product.
About Fortune Minerals
Fortune is a diversified resource company with several mineral
deposits and a number of exploration projects, all located in
Canada. The Company is focused on
the development of the Arctos Anthracite Project in British Columbia and the vertically integrated
NICO gold-cobalt-bismuth-copper project that is comprised of a mine
and mill in the NT that will produce a bulk concentrate for
shipment to a refinery for processing to high value metal products.
In addition, the Company owns the Sue-Dianne copper-silver-gold
deposit and other exploration projects in the NT. Fortune is
focused on outstanding performance and growth of shareholder value
through assembly and development of high quality mineral resource
projects.
This press release contains forward-looking information. This
forward-looking information includes statements with respect to,
among other things, the proposed financing and development of the
NICO project and the SMPP, the permitting process for the NICO
project and the SMPP, the anticipated production from the SMPP and
the number of jobs and the economic benefits expected to be created
by the SMPP. Forward-looking information is based on the opinions
and estimates of management as well as certain assumptions at the
date the information is given (including, in respect of the
forward-looking information contained in this press release,
assumptions regarding the Company's ability to arrange necessary
financing for the NICO project and the SMPP, obtain all necessary
permits for the NICO project and the SMPP and assumptions
regarding the production from the SMPP and the number of jobs
and the economic benefits to be created by the SMPP. However, such
forward-looking information is subject to a variety of risks and
uncertainties and other factors that could cause actual events or
results to differ materially from those projected in the
forward-looking information. These factors include the inherent
risks involved in the exploration and development of mineral
properties, the risk that the Company may not be able to arrange
the necessary financing to construct and operate the NICO mine or
the SMPP, uncertainties with respect to the receipt or timing of
required permits for the development of the NICO project or the
SMPP, the possibility of delays in the commencement of production
from the NICO project or construction of the SMPP and other
factors. Readers are cautioned to not place undue reliance on
forward-looking information because it is possible that
predictions, forecasts, projections and other forms of
forward-looking information will not be achieved by the
Company. The forward-looking information contained herein is
made as of the date hereof and the Company assumes no
responsibility to update or revise it to reflect new events or
circumstances, except as required by law.
SOURCE Fortune Minerals Limited