Que. lithium mine aims to cash in on boom
Last Updated: Friday, August 27, 2010 | 10:50 PM ET
CBC News
A long-dormant lithium mine in northern Quebec could soon roar back into action as the increasing popularity of electric cars has caused a spike in demand for the metal that helps power them.
The name of the nearby city translates as "valley of gold," but for 10 years beginning in 1955, Sullivan Mines operated a lithium mine just north of Val-d'Or, Que.
The mine churned out a million tons of lithium ore per year, before demand for a metal with few commercial applications dried up. It's been all but abandoned ever since.
But the site's new owner, Canada Lithium Corp., plans to reopen the facility based on a surge in interest in lithium. It hopes to be cranking out nearly 3,000 tons of lithium ore per day within three years — nearly three times the old mine's output.
Other regions of the world, such as South America, can produce lithium more cheaply. But Canada Lithium has confidence in the Quebec site's viability because of rising global demand (forecast to increase by seven per cent annually for the next decade) and the mine's proximity to North America's auto industry.
Havard Gould recently visited the site and got a glimpse of Canada's next green gold rush in action. Click on the video player here to view his report.
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