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Monday, Apr 15, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Lithium

French miner Eramet invests US$800M in Argentina’s lithium sector amid escalating demand

The announcement followed a meeting between Argentina’s minister of foreign affairs and French government officials in Paris

French miner Eramet to invest US$800 million in Argentina's lithium sector amid escalating demand
Lithium South is a company actively developing a 1.58 million tonne lithium resource in Argentina's Salta province. Photo via Lithium South Development Corporation

Eramet S.A. (EPA: ERA) will invest an additional US$800 million in Argentina lithium following a US$2.1 billion commitment to battery metal mining in the country and Indonesia last month.

Argentina’s Ministry of Foreign Affairs, International Trade and Worship, announced the development Wednesday. The announcement followed a meeting with government officials in Paris. The funds for the project will be specifically allocated to the South American nation’s Salta province.

Eramet’s leadership told Argentine Foreign Minister Diana Mondino that recent measures taken by her government were a fantastic signal for investors. President Javier Milei seeks to implement measures that will cut costs for miners amid a bleak economic situation in the country.

“The goal is to start on the road to rebuilding our country, return freedom and autonomy to individuals and start to transform the enormous amount of regulations that have blocked, stalled and stopped economic growth in our country,” Milei said. He just implemented a decree to deregulate the country’s economy through eliminating or changing over 300 rules.

“The meeting with Bonne was quite fruitful, and we are proud of President Macron’s support for Argentina at the beginning of this new stage, with investments and backing at multilateral forums,” Mondino said.

Read more: Lithium South Development technical report shows 40% increase in lithium recovery

Read more: Lithium South Development first production well installed at Hombre Muerto lithium project

Salta province is attractive investment prospect

Eramet recently approved the second phase of development at its Centenario lithium project in Argentina. The operation will be capable of producing 24 kilotons of lithium carbonate equivalent per year starting in 2025.

The Salta province the company is investing in contains substantial quantities of the battery metal. It is one of the world’s largest lithium resources.

Other companies like Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) have been capitalizing on the opportunity as well. The junior miner is currently developing a 1.58 million tonne lithium resource in the Salta province at its flagship Hombre Muerto North project.

Miners like Power Minerals Limited (ASX: PNN) and Argentina Lithium & Energy Corp. (TSX-V: LIT) (OTC: PNXLF) have been developing their resources as well. Power Minerals operates the Salta Lithium Brine Project there. Meanwhile, Argentina Lithium & Energy is currently developing its Rincon West project in the province.

Argentina saw its highest rate of mining exploration since 2012 last year. The country produced 4.8 per cent of the world’s lithium in 2022. That production has it sitting below Australia, Chile and China on the list of the top global producers.

Argentina, Chile and Bolivia hold the majority of the world’s lithium brine resources.

 

Lithium South Development Corporation is a sponsor of Mugglehead news coverage

 

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