Thailand: Bangchak nails bigger lithium cut

Thailand: Bangchak nails bigger lithium cut

In a bid to capitalise on the growing demand for lithium as an energy
storage material, SET-listed and mostly state-owned Bangchak Corporation Plc
(BCP) has spent C$42.5 million (1.1 billion baht) to acquire more shares in
Lithium Americas Corporation (LAC).

Bangchak president and chief executive Chaiwat Kovavisarach said the
acquisition was done through a subsidiary, BCP Innovation Pte Ltd (BCPI),
which bought 50 million shares in LAC, a Canadian lithium mining firm, at a
price of C$0.85 a share.

"This means BCP holds a 16.1% stake in LAC, which is part of Bangchak's plan
to expand in the power and power storage sectors," Mr Chaiwat said.

Under the terms of acquisition, Bangchak has agreed to lend LAC up to US$80
million (2.7 billion baht) and has committed to buying lithium ore from the
LAC-run Cauchari-Olaroz mine in Argentina for 20 years.

Bangchak also has the right to buy 20% of the mine's initial production
capacity of roughly 25,000 tonnes a year.

The Bangchak loan will be invested in Minera Exar SA, which oversees
Cauchari-Olaroz, and will largely cover construction costs.

Ore excavation at the mine near Argentina's Jujuy city is expected to double
to 50,000 tonnes a year in the second phase.

LAC is also considering a plan to invest further in lithium mining in the US
state of Nevada, Mr Chaiwat said.

Bangchak, an oil refiner and fuel retailer, diversified into lithium because
of the mineral's growing importance.

In May, Bangchak also acquired a 40% stake in PetroWind Energy Inc, which
operates a wind farm in the Philippines, to increase its renewable
power-generating capacity to more than 400 megawatts. The project is
expected to start contributing additional revenue to the company this year.

BCP shares closed yesterday on the Stock Exchange of Thailand at 33.25 baht,
unchanged, in trade worth 53 million baht.

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Link to Original Article:
http://www.bangkokpost.com/business/news/1289163/bangchak-nails-bigger-lithi
um-cut

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John Diecker
APT Consulting Group Co., Ltd.

www.aptthailand.com