Australian-lithium miner Allkem Limited (ASX: AKE) acquired a certificate of authorization for its lithium project in James Bay, Quebec.
The company said on Thursday that the final approval from the the Environmental and Social Impact Review Committee (COMEX) is a significant milestone in the project’s development. The COMEX is an independent body consisting of members appointed by the governments of Quebec and the Cree Nation. It is responsible for the project’s environmental and social impacts.
Allkem is nearing completion of detailed engineering and procurement and is all set to begin construction on the project. It has finalized key construction permits and will soon submit them for a smooth transition into the operational phase.
“We are pleased to achieve this approval prior to year-end and are positioned to execute this tier 1 project with detailed engineering well advanced prior to the commencement of construction,” Martin Perez de Solay, Allkem’s managing director and CEO, said.
“The project leverages Allkem’s significant spodumene experience, and its strategic location is expected to deliver to significant economic benefits and value to the region and the broader North American lithium supply chain.”
Once constructed, the company anticipates adding approximately 311,000 tonnes per annum (tpa) of spodumene concentrate with 5.6 per cent lithium oxide (Li2O) from the addition of the James Bay lithium project.
The mine is located 130 kilometers from James Bay and the Cree Nation of Eastmain community in northern Québec. The project is also estimated to achieve a pre-tax internal rate of return (IRR) of 62.2 percent.
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New company takes over four major initiatives in Argentina
Earlier this month, the company and the Cree Nation secured agreement that will govern their relationship through a sustainable development approach.
The development comes amid Allkem’s ongoing USD$10.6 billion merger deal with US chemicals company Livent Corporation (NYSE: LTHM). The ensuing business combination will result in company called Arcadium Lithium.
The newly merged company, with assets spanning Australia, Canada, and Argentina, will rank as the third-largest under Albemarle Corporation (NYSE: ALB) and Chile’s Sociedad Química y Minera de Chile (SQM) (NYSE: SQM).
The newly-merged company will also take control of four major initiatives in Argentina. These will contribute to the company goal of achieving lithium carbonate equivalent production of 250,000 tonnes per year by 2027. The new initiatives will also yield USD$200 million in savings through cost reductions.
Allkem intends to develop the Cauchari project in Argentina’s Jujuy province. The project has the potential to produce 25,000 metric tonnes of lithium carbonate. In the same region, the company plans to implement the second phase of the Olaroz project in 2024, with a capacity to produce 25,000 metric tonnes of lithium carbonate.
Livent is also currently expanding the Fénix plant in Argentina’s Catamarca province. The plant receives brine from the Hombre Muerto salt flats. This expansion aims to achieve a lithium carbonate production of 30,000 metric tonnes by the end of 2026.
The consolidation of projects will heighten competition for resources. Some of the other companies operating in the Salar del Hombre Muerto include the South Korean steelmaker, POSCO Holdings (KRX: 005490), which oversees a lithium project encompassing both exploration and processing, and Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ).
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