December 6, 2019: A fire that ravaged Aqua Metals’ operations in Reno, Nevada on November 29 has put paid to any chance that the firm’s target of making all 16 of its AquaRefining modules operational by the end of the year.
This target has widely been perceived by investors as key to assessing the viability of Aqua Metals’ attempts to commercialize its hydrometallurgical recycling process.
The firm’s share price dropped to $0.76 on market opening from $1.35 at the previous close. Six months ago AQMS was trading in the low $1.90s.
“We have up to $50,000,000 in property casualty and business continuity and loss of production coverages and we are currently reviewing available insurance coverage,” said Steve Cotton, president and CEO of the firm.
“We will pursue all available claims for insurance recovery to restore the AquaRefinery to its pre-fire state and commencement of operations of all 16 AquaRefining modules.”
The firm said: “After initial damage assessments, Aqua Metals believes that it will incur a material cost and experience a material delay in operating any processes within the plant. Specifics on timelines, costs and availability of insurance coverage will be determined as we progress with inspections, assess damage and plan accordingly.
“We expect that the recovery and rebuild of the AquaRefining area could take several months or more. We have already been working closely to coordinate recovery activities and plans with our supportive operations management and maintenance partner, Veolia.
“The cause of the fire is unknown and the local authorities and other parties need to investigate the origin of ignition and the root cause. The flames at one point reached the upper roofline of the AquaRefinery area and damaged the roof.
“The fire and related intense heat and smoke caused significant damage to a material amount of equipment in the AquaRefinery area, including all 16 AquaRefining modules, control wiring and other supporting infrastructure.
“In addition, approximately 1,600 gallons of AquaRefining concentrate was released within the plant due to a tank succumbing to intense heat. That concentrate, along with thousands of gallons of water deployed to extinguish the fire, resulted in approximately 1 inch of liquid to spread throughout the entire plant and reached the in-plant operational offices.”
This could add another dimension to the fire, given that the concentrate is methyl-sulfonic acid, a known carcinogen and a hazardous chemical requiring immediate medical attention if ingested.
The firm said that the floor to ceiling firewall between the AquaRefining area and the rest of the plant appears to have isolated most of the damage to the AquaRefining area.
The firewall also appears to have spared key front-end process equipment such as the battery breaker/separation system, concentrate production area, kettles and ingot casting, water treatment and recovery and other important areas of the plant. The administrative office area also appears to have remained intact.
