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Wednesday, Jul 24, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Lithium

Argentina’s Salta province to issue tender for miners; national lithium output spikes

New mining concessions spanning about 37,000 hectares will be provided in the province’s Arizaro salt flat

Argentina's Salta province to issue tender for miners in August; national lithium output spikes
REMSa S.A. leader Alberto Castillo (left of flag) and others meet to talk about mining last month. Photo credit: REMSa S.A.

REMSa S.A., an energy and mining outfit primarily owned by Argentina’s Salta province, will launch a tender process this summer to concession a vast land package in the region’s Arizaro salt flat. The news comes as the nation’s lithium output has shot up by nearly 50 per cent year-over-year during the initial four months of 2024.

The local publication El Tribuno expects edicts/mandates for the bidding process to publish by the end of the month.

“It is the largest area for lithium production in the country,” Alberto Castillo, President and CEO of REMSa S.A., said. It spans about 37,000 hectares.

“These are very important moments for the province of Salta,” Castillo added. “We have the resources and the state policy, established by Governor Gustavo Sáenz, to develop these projects and continue generating local suppliers.”

Winning companies will have to negotiate a net smelter return royalty percentage provided to REMSa.

Thus far, 15 of them have shown an interest in developing Arizaro’s resources. Castillo met with some of the companies at this year’s PDAC conference in Toronto. They will have to provide REMSa with a plan detailing their expected carbon emissions and methods to offset the environmental impact of their work.

Castillo’s company just launched a tender process for studies, exploration and eventual mining at the Patagonia deposit within Salta’s Rio Grande salt flat too.

“It is made known that the object of the investigation consists of the exploration and search for lithium, potassium, gold, copper, iron, magnesium and/or any other mineral of interest,” read a statement from Salta’s Official Gazette.

Canada’s Fraser Insitute ranked Salta as one of the world’s most attractive jurisdictions for new investments in its most recent mining report.

Read more: Lithium South expands well installation program at Hombre Muerto North

Read more: Lithium South explores alternative production methods at Hombre Muerto North

Investors visit intriguing Salta lithium operation

The province is home to some advanced-stage lithium projects that have caught the eye of investors as well — notably, the Hombre Muerto North lithium brine project run by Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ).

At the end of May, investors spent three days on-site assessing the operation’s potential. It has already attracted the South Korean major Posco Holdings Inc (KRX: 005490), which is jointly developing certain claim blocks at Hombre Muerto North in a joint venture with Lithium South.

Salta currently has 92 operational mining companies throughout the province’s 19 salt flats. It was described as “the next frontier for Argentinian mining” years ago and it continues to fulfil that prediction while pulling global interest.

 

Lithium South Development Corporation is a sponsor of Mugglehead news coverage 

 

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