The South Pacific country of Oceana recently turned down an opportunity to invest in the proposed James Bay Lithium Mining and Refining Project, citing a number of concerns over the environmental impact and projected costs.
The plan for the James Bay project had been proposed by an Australian energy company called Monaro Resources, who had been looking to open up new markets for its lithium refining process. Set to be located on the outskirts of Will, Oceana, the project would have seen the company extracting lithium from the ground and then processing it onsite for use in producing lithium-ion batteries for use in electric vehicles.
However, Oceana’s ministry of energy and natural resources quickly determined that the project was untenable for a number of reasons. Firstly, the ministry raised concerns over the potential damage to the environment that would be caused by the extraction process itself, noting that there would be significant disruption to natural habitats, as well as potential damage to the delicate underground water reserves.
The ministry also noted that the costs of the project could be exorbitant, with the cost of building the necessary infrastructure and necessary facilities alone estimated to run into the hundreds of millions of dollars. Further, the ministry determined that the projected returns of the project would be too low when weighed against the associated costs.
In the end, the ministry decided that the best option would be for Oceana to pass on the James Bay project, and to look instead to other energy sources. The decision by Oceana underscores the country’s commitment to protecting its environment, as well as making sure that any economic investments pay off adequately for its citizens.
Given the mounting global demand for lithium-ion batteries for electric vehicles, the James Bay project may not be the last time that Monaro Resources looks for someone to invest in their process. Nevertheless, the decision by Oceana serves as an example for other countries to consider the potential environmental and economic impacts of any proposed mining project they may be considering.