Australia’s junior Galan Lithium Limited (ASX: GLN) updated local government officials on the progress it has made with its flagship battery metal project in Argentina’s Catamarca province last week. The company secured investments for the operation valued at nearly C$16 million last month.
Galan said Tuesday that it has now started filling the site’s second evaporation pond. About 65 per cent of its construction and liner installation is now completed. Meanwhile, 40 per cent of the work involved with setting up the third pond has been finished.
The evaporation currently underway in the first pond at Hombre Muerto West (HMW) is expected to yield 500 tonnes of lithium carbonate equivalent (LCE). Galan aims to start producing lithium chloride from the project during the first quarter of 2025. The chemical is needed for the production of lithium metal and industrial humidity control systems, among other things.
“We are very proud of the solid progress being made by the HMW Phase 1 construction team and Galan is well on its way towards their long-term production journey for its low-cost, low-risk lithium chloride development strategy,” Managing Director Juan Pablo Vargas de la Vega said.
The operation contains an estimated 6.6 million tonnes of LCE. Its indicated resources yield a favourable average grade of 904 milligrams per litre.
The site has 21 mining tenements with exploration permits spanning 11,600 hectares. It is adjacent to a major operation run by Arcadium Lithium plc (NYSE: ALTM) in the east.
Galan will not be impacted by the Catamarca government’s recent decision to temporarily stop issuing new mining permits due to environmental concerns.
The second evaporation pond at Hombre Muerto West. Photo credit: Galan Lithium
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Government officials meet with other lithium operators
Just last month, Argentina’s major private company Techint met with the Salta province’s Governor Gustavo Sáenz to present a plan for a major lithium operation. It will be valued at approximately US$800 million.
The company obtained a series of advanced lithium assets from Alpha Lithium Corporation (OTC: APHLF) last fall and aims to harness their full potential.
Catamarca, Salta and Jujuy are the country’s lithium-bearing provinces. The electrification of the automotive industry, climate goals and other factors have inspired an increased interest in Argentina’s salt flats among investors.
In addition to Galan, mining companies capitalizing on the nation’s lithium brine resources include China’s Ganfeng Lithium (SHE: 002460), the Salta operator Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) and the Indian mining company KABIL (Khanij Bidesh India Ltd).
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
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