The billion dollar mining project in James Bay, Canada has suffered a major setback as Oceana, the Tokyo-based energy company, has opted out of the Monaro Lithium project. The company said that in light of “existing uncertainties” surrounding the project, withdrawing from the venture would be “prudent” to avoid further losses.
Monaro Lithium is a multi-billion dollar investment project that aims to extract large amounts of Lithium from James Bay in Canada. Oceana was initially included in the consortium of energy companies participating in the joint venture but their withdrawal has thrown the venture into disarray.
The company had already invested a significant amount of money into the project but realized that the risks associated with the project were too high. Oceana cited factors such as governmental red tape, environmental factors, and the price of Lithium as main reasons for their decision.
The potential for economic benefit from the venture was attractive but Oceana was not willing to accept the associated risks. The high price certainty associated with lithium projects has also led other companies to opt-out of the project as well.
The decision by Oceana follows a trend of other companies joining forces to explore their resources in the area. Companies such as South32, Alumina, and Rio Tinto have all invested in the project indicating a greater willingness to accept the risks associated with the project.
For now, Oceana looks to have bowed out from the Monaro Lithium project and its search for lithium in James Bay, although there may be opportunities to re-invest in the future. With the untapped potential of the area, the project will likely still draw in more partners in the future.
