European Metals Holdings (AIM:EMH) has reported preliminary testwork results indicating that switching to a tunnel kiln at its Cinovec lithium project in the Czech Republic could reduce capital expenditure by approximately US$112m and cut annual operating costs by US$10m compared with the rotary kiln configuration in the project's December 2025 definitive feasibility study (DFS).
When combined with a separately announced optimisation of the Lithium Chemical Plant flowsheet, the cumulative potential saving rises to US$112m in capex and US$64m per year in opex, though the company notes the full impact on the DFS will not be known until the study is updated.
The tunnel kiln design, which would replace two gas-fired rotary kilns with a single unit, operates at a lower solids temperature of 850 degrees Celsius compared with 925 degrees in the DFS configuration, and testwork has confirmed lithium roast and leach recovery of 93.4%, broadly matching the existing design.
A key operational advantage is fuel flexibility: the kiln can run on electricity rather than gas, and if powered by renewable energy supplied by project partner CEZ, the company estimates CO2 emissions would fall by approximately 98,000 tonnes per year.
European Metals holds a 49% stake in Geomet, the entity controlling Cinovec, with Czech energy group CEZ owning the remaining 51%.
Keith Coughlan, Executive Chairman, said the change "could result in a significant reduction in the capex as a result of the use of off-the-shelf components, modular construction as well as considerable opex reductions."
A final decision on adopting the tunnel kiln configuration is expected by the fourth quarter of 2026, at which point Geomet would proceed to update the DFS.
