After meetings with Thai officials last week Pan Asia Metals is confident that Thailand’s Office of the Board of Investment, or “OBI” will support the company’s initiatives including its Reung Kiet lithium project.
The company met the Board last week after the Thai cabinet approved the country’s Policy on Mining and Downstream Industry that aims to improve investment promotion measures for the exploration, mining and downstream processing industries.
Thailand is the largest automotive manufacturer in south-east Asia with an annual output of more than 2 million vehicles for a variety of household brands. Its Electric Vehicle Policy is aiming for 30 per cent of the country’s total vehicle production to be electric by 2030.
As the only lithium explorer in south-east Asia with Reung Kiet incorporating the Reung Kiet and Bang I Tum prospects in Thailand, Pan Asia says it is also investigating the production of precursor chemicals needed by battery manufacturers in the lucrative electric vehicle and lithium-ion battery markets.
Pan Asia says OBI confirmed that Thailand’s electric vehicle and lithium-ion battery industrial ecosystems were developing rapidly with Chinese manufacturers BYD, Great Wall and Geely already producing EVs in Thailand and all three scheduled to start using lithium-ion batteries manufactured in Thailand within three years.
The Policy on Mining and Downstream Industry sent a strong signal that the Thai Government is on the front foot with regard to its minerals supply chain security, which was confirmed during PAM’s meetings with the BOI. The BOI’s positive reception to PAM and its projects was an endorsement of PAM’s activities and objectives.
In June the company announced a resource at the Reung Kiet prospect of 45,600 tonnes of lithium oxide or about 113,000t of lithium carbonate equivalent.
The figure is calculated at a 0.25 per cent lithium oxide lower cut-off of 10.4 million tonnes at 0.44 per cent lithium oxide, 0.04 per cent tin, 0.16 per cent rubidium, 0.02 per cent caesium and 0.009 per cent tantalum pentoxide.
Pan Asia says the Board was particularly interested in the company’s plans to produce lithium chemicals for use in cathode active material manufacturing in Thailand and there would be incentives for exploration and mining activities.
Two meetings were held with OBI that included Secretary-General Duangjai Asawachintachit and a second meeting with the Board’s Investment Promotion Division.
Pan Asia Metals says the company expects to have a follow-up meeting with OBI once an investment promotion and incentives package has been approved by the Thai Government.
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