In a move to extract the lithium available in northwest Argentina, the American company Albemarle has just obtained environmental permission to the exploration phase of this mineral in the province of Catamarca, which will require approximately 47 million dollars.
In 2022, the mining company announced a new phase of its business in that province and this year it has launched a campaign that includes almost 15,000 meters of drilling in 14 months.
“During this period, we will try to determine how the resource behaves in the salt pan and what kind of projects can be developed in the region. All this will be done with sustainable manpower development and local hiring with the highest international standards,” Luciano explained Berenstein, country manager of Albemarle Argentina.
If the results of the exploratory studies are positive, and if the macroeconomic conditions are met, some 500 million dollars to produce lithium in the country,” the manager said.
Currently, the lithium market expects a significant boost over the next few years, which could grow up to 8 times by 2030 compared to 2020. According to calculations made by the North American mining company, world lithium demand will reach 3.7 million tons in 2030.
This is due to various factors, including the electromobility revolution, focused on the development of the electric vehicle market, especially in Europe, China and the United States. Additionally, their employability extends to the sectors of sustainable energy production, electronics, glass, health care, and agriculture, among others.
Consulted on How do you see Argentina’s political and economic context for investingBerenstein considered that “regardless of its political and economic context, Argentina has a great opportunity for growth and development thanks to its natural resources, such as lithium, which are experiencing great momentum in the world market.”
“Taking into account the context, investments in the sector can have a significant impact, providing opportunities for growth and development, in our case, for Catamarca, the local workforce and the country at large,” he said.
The price of lithium peaked in March at $85,000 a ton. Then it dropped to US $50 thousand and currently it stands at US$37,500. The economic decline has to do in part with a decline in the production of electric cars in China.
However, Tomás Lanardone, from the law firm MHR Legal specializing in energy issues, clarifies that “the price is very volatile but IThe trend is upwards as demand continues to grow. And because the offer does not finish accompanying that demand,” he explains.
However, there are around 50 lithium projects in different phases in Argentina only two are in production: the Fénix project in Catamarca and Olaroz project in Jujuy. According to data managed by the Ministry of Mines, this year these two projects will produce approx 37,000 tons of lithium carbonate.
However, there are several projects that will soon enter the production phase, such as Cauchari-Olaroz managed by Minera Exar, with the participation of Ganfeng and Lithium Americas. Catamarca, in particular, will be joined by the new investment of 700 dollars by the Chinese group Zijin Mining, responsible for the Tres Quebradas project, for which it disbursed over 500 million dollars in the first phase.
Taking into account projects that will start producing in the short term, the number of exportable tonnes could reach 120,000 in 2023, according to Lanardone. “It is a number that competes perfectly with the rest of minerals” such as gold and silver, which have so far been at the top of the export podium.
Source: Clarin
