Lithium is the great future of the Argentine economy and French businessmen know this. Has one of the four largest reserves of lithium in the world, the new white gold of the 21st century. Together with Bolivia and Chile, the salt flats of these three countries concentrate 85% of the planet’s easily extractable lithium reserves.
Good news awaits President Alberto Fernández, when he disembarks in Paris today at noon, to participate in the Peace Forum, hosted by President Emmanuel Macron. The Eramine Sudamericana company, a subsidiary of the French company Eramet, will increase its strategic investment in lithium in Centenario Ratonesits deposit in the heights of almost 4,000 meters from San Antonio de los Cobres in Salta, Argentina.
“Eramet has started a study for the next phase of its lithium project, which will significantly increase production capacity,” said Archibaldo Lanús, managing director of Eramine Sudamericana, in Paris, during an interview with Clarione.
“The estimated total investment of the Eramet project is around 770 million dollars so far, of which about 270 million dollars have been spent so far ”, explained Lanús, who has been promoting lithium in Salta for 10 years.
“This amount must include the exploration expenses and studies that were carried out prior to the investment decisionabout 50 million dollars between 2010 and 2018, ”he explained.
Eramet arrived in Argentina in 2010. Eramine’s CEO is Daniel Chavez Diaz, of Argentine nationality, and with extensive experience in the lithium sector. The French company is based in Salta, San Antonio de los Cobres, more than 4000 meters high.
Lithium resources in Argentina they are concentrated in three provinces: Salta, Jujuy and Catamarca.Eramine is one of the 12 ongoing projects in Argentina lithium.
‘After their arrival in Argentina, the French technicians quickly moved to Salta, as we identified several salt flats with lithium potential that had not yet been sufficiently explored,’ explained Dr Lanús.
“Over the years they have been able to build an excellent working relationship with the provincial authorities, as well as with the municipal authorities where the project is located. Currently is under construction. The goal is to start production in the first half of 2024, “she said.
They plan to start production in 2024, with the aim of quickly reaching the nominal production rate of 24,000 tons per year of battery quality lithium carbonate.
The first lithium plant to start production in Salta will be the Centenario Ratones saltworks. The French company Eramet and the Chinese group Tsingshan joined in November last year to complete the construction of the project, located 60 kilometers from Santa Rosa de los Pastos Grandes, started in 2010, only with the French company through its subsidiary Eramine Sudamericana.
The forecast is that it will generate more than 2,000 direct and indirect jobs with mine The plant will have an estimated annual production capacity of 24 thousand tons of lithium carbonate equivalent (LCE).
French investment occurs when Argentina is high inflation, energy crisis, a profound and critical economic situation and an ongoing plan with the IMF, a scenario that does not discourage lithium entrepreneurs in France, who observe Argentina’s potential and the need to maintain legal security for their investments.
Archibaldo Lanús, economist, lawyer and former diplomat, is convinced that “the goal is to make Argentina a “big player” in the world market ”.
-How long will the investment announcement they announce to the president last?
– The total investment for our current project is estimated at approximately $ 770 million. The feasibility of an increase in production is being studied in France immediately after the construction of the first phase of the factory, which is 24,000 tons. Let’s go to 75,000 tons.
-Are there conditions in Argentina, with 12 dollar classes, to invest?
-The Argentine exchange system poses a challenge when seeking funding for foreign investment projects in the country.
-What is the legal framework?
-The Argentine government, through decrees 234 and 836 published in 2021, has taken a step in the right direction to be able to offer foreign investors a better trading framework to develop projects for export. These decrees contributed to Eramet’s decision to finalize the investment in the lithium project The company has great confidence in the future of Argentina and I have collaborated to consolidate this perspective.
-Do you have a special model that you can export? A mining dollar?
– Decrees 234 and 836 define a framework for exporting our production. Of course, any favorable developments in this picture will be welcome.
– Isn’t legal insecurity a problem for you?
-The regulatory framework in the mining sector, both nationally and provincial, is clear. For example, under the Mining Investment Act No. 24.196, we have achieved fiscal stability for our project in 2019. Of course we remain attentive to any evolution of this legal framework. Of course, investors are very happy with the Salta province’s commitment to mining projects.
-How are relations with the government and with the secretary of the mines, Flavia Royon?
-Since the company’s inception in Argentina more than 10 years ago, the directors of the company have maintained an excellent working relationship with all representatives of the national and provincial government.
-How many people are working in the salary now and how many do you plan to hire?
-Currently, that is, during the construction phase, about 800 people work in the salt pan. This amount will increase in the coming months, reaching 1,200 people at the peak of the works. During the production phase, the company will have around 300 people.
-Do they belong to the original peoples? How is the bond with them?
-In production, about 85% of the people who will work on the project come from Salta, of which 20% from the communities surrounding the salt pan, San Antonio de los Cobres and Santa Rosa de los Pastos Grandes.
-What kind of technology do you use for extraction? What level of production are you at?
-The technology used by Eramet is based on direct lithium extraction (DLE – Direct Lithium Extraction, from its acronym in English), through a lithium sorbent developed and patented by Eramet. According to the technicians, this technology has several advantages over conventional technology, based on natural evaporation. Production times are less than one week, compared to 18 months with the natural evaporation process.
-What is the advantage of this technology?
– Lithium recovery yield of about 90%, compared to 50% with the natural evaporation process. In other words, twice as much brine is extracted for the same lithium production. This allows an optimization of the management of the reservoir’s water balance High selectivity of the process, which facilitates obtaining a quality battery product This production process was developed in the Eramet research and research center in France. The whole process was tested in a pilot plant installed in the salar, which has been in continuous operation and in real conditions for more than two and a half years.
Will they make the technology more sophisticated?
-This manufacturing process already has excellent performance and selectivity. However, studies will continue at the Eramet research center in Paris to further improve it. Continuous improvement is a paradigm in the company’s DNA.
– Are you already exporting or have you explored?
-Industrial production, and therefore exports, will begin in 2024.
-Where does lithium come from and how is it transferred?
-The final product, battery quality lithium carbonate, will be transported from the salt pan to the port of Antofagasta by truck. Then you will leave by boat for our different markets.
-Do you want to export lithium or will it have added value?
-Eramine Sudamericana will export the battery quality lithium carbonate, which is used in the cathodes of lithium batteries. This product has a high concentration of lithium (greater than 99%) and extremely low impurities. The use of advanced technologies is necessary to consistently obtain a battery quality product. Therefore, it has a high added value.
-What kind of added value? For which sectors?
-The product will be used for the lithium battery industry, especially electric car batteries.
-Will you do batteries only or also for the nuclear industry?
The main market will be that of batteries.
-How much does a ton of lithium cost today and how much did it cost when the installation began?
-Today, a ton of lithium carbonate costs about $ 70,000, reflecting a shortage of lithium to meet the growing demand of the electric car industry.With several projects going into production over the next 2-3 years, including ours, we estimate that prices will be between $ 20 and $ 30,000 per ton when we start production. It should be noted that this price level is still high, the average lithium carbonate price between 2010 and 2020 was around $ 8,000 per ton.
Does Eramet have Chinese partners or do they work alone?
-At the end of 2021 Eramet signed a partnership agreement with the Chinese company Tsingshan, for the development of its Centennial project in Salta, of which Eramet controls, with a 50.1% stake, and will be responsible for the operation.
–Are you planning to partner with other companies in a joint venture? Will they spread to other provinces?
-Eramet is studying different ways of diversification in the lithium triangle (Argentina, Chile and Bolivia). These new projects can be developed exclusively by Eramet or in joint venture with other companies. We are open to different options.
-There is no regulatory framework for lithium in Argentina. It must be done?
-Argentina has a regulatory framework for the mining sector, mainly through the Mining Investment Law No. 24.196. This regulatory framework includes lithium.
-What mistakes shouldn’t be made in this regulatory framework?
-The company has great confidence in the regulatory framework established in Argentina, with clarity and stability. It is normal for this picture to change over time. Such changes should be made with the greatest possible agreement with all parties involved. But let’s be positive, we have great faith in the public-private relationship to develop a national strategy for a world in constant change.
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Eramet bought some concessions of our salary from private individuals. But the vast majority of the concessions were obtained through an agreement with REMSA, the company in the province of Salta, which manages its natural resources. REMSA will receive a contractually defined royalty when we start marketing the product. My experience with the French company Eramet and the branch created in Argentina could not be more stimulating and satisfying. In this field, the country has shown a permanent favorable receptivity to foreign investment. Believe in Argentina’s promising future.
Source: Clarin
