European Lithium Ltd (ASX:EUR, OTCQB:EULIF) has signed a non-binding memorandum of understanding (MoU) with Saudi-based Obeikan Investment Group to build and operate a hydroxide plant under a joint venture (JV) in Saudi Arabia for EUR’s Wolfsberg Lithium Project in Austria.
The agreement came about at the at the Future Minerals Forum in Riyadh, where EUR was welcomed by global mining industry leaders, governments, investors and other key players, all of whom were there to foster and develop opportunities for long-lasting partnerships.
There were 6000 attendees, 150-plus mining majors and corporates, over 50 ministers and government officials, 200-plus global speakers and over 130 countries at the Forum. For EUR, the influence in attendance and the prevailing agreement proved well worth the trip.
About the MoU
Under the MoU, EUR and Obeikan will work together to negotiate suitable commercial terms for the construction and operation of a hydroxide plant in Saudi Arabia, although no assurance is given that a binding agreement will be executed.
Looking ahead, this 50:50 joint venture will reduce the opex energy costs, creating significant savings for the Wolfsberg Project.
Huge energy cost savings
EUR chairman Tony Sage said: “The JV with Obeikan will allow EUR to focus its efforts on building the facilities to start mining concentrate in addition to benefiting from the JV opportunities.
“The huge energy cost savings will make Wolfsberg even more robust.”
About Obeikan
Obeikan Investment Group is one of Saudi Arabia’s 100 largest companies, with more than 3,000 employees and operations in 16 countries.
The company is a global leader in the industry across a diverse range of sectors, inclusive of manufacturing, health, technology and education.
Obeikan CEO Eng. Abadallah Obeikan said: “We are pleased to announce this MoU, a great step ahead in further strengthening the Saudi Australian economic collaboration.
“In line with Obeikan investment group strategy of accelerating sustainability within the energy field.”