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Thursday, Jul 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.

Lithium

United Mining Projects Corporation sets production projections for 2027-2028

UMPC subsidiary, Marhen Lithium, is currently analyzing its first batch of production samples

United Mining Projects Corporation sets production projections for 2027-2028
Image via United Mining Projects Corporation.

Dubai-based United Mining Projects Corporation (UMPC) intends to produce battery-grade lithium in Argentina next year.

Company CEO Bradley Pielstucker said on Wednesday that the company’s production goals include delivering 5,000 metric tons in 2027 and twice that in 2028.

UMPC announced a USD$550 million investment last month for a lithium project in Argentina’s Catamarca province. Its subsidiary, Marhen Lithium, is currently analyzing its first batch of production samples. The company is presently deciding on which extraction method to use, but will likely select a combination of direct lithium extraction (DLE) and evaporation pools.

“We’re looking at what steps we’ll take with the pilot plant, which we expect to have operating next year,” Pielsticker said. “We’re looking at direct extraction to help us manage water resources more efficiently.”

Argentina ranks fourth globally in lithium production. Lithium accounted for 23 per cent of Argentina’s mining exports last year. Catamarca leads the country in lithium production, generating about 20,000 tonnes of lithium carbonate equivalent annually. Five other projects in Catamarca, Jujuy and Salta provinces are expected to start production within the next two years.

Faced with a prolonged economic crisis and a foreign currency shortage, Argentina is ramping up mining exports to fill its coffers.

Lithium production surged by nearly a third in 2023 compared to the previous year. Bradley Pielsticker, CEO of United Mining Projects, endorses a proposal by President Javier Milei currently debated in Congress. This proposal would offer tax breaks, customs benefits, and favourable exchange rates for large mining projects.

Read more: Lithium South and POSCO Holdings ink mutual development agreement

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

Argentina is a hotspot for investment

Argentina has proven to be something of a magnet for investment over the past few years.

The Israeli company XtraLit, the French mining giant Eramet S.A. (EPA: ERA), and India’s KABIL (Khanij Bidesh India Ltd) have each invested several millions into producing Argentine battery chemicals.

Furthermore, Rio Tinto Group (ASX: RIO) invested CAD$479 million to establish a local lithium carbonate plant. China’s Ganfeng Lithium (SHE: 002460) has also committed USD$70 million for a 15 percent stake in the Pastos Grandes operation, primarily owned by Lithium Americas (Argentina) Corp. (TSX: LAAC).

Additionally, Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is developing a CAD$1.25 billion operation in Salta. It also has a deal with Korean-chemicals giant POSCO Holdings (NYSE: PKX) to jointly develop its Hombre Muetro North lithium project also in Salta.

 

Lithium South Development Corporation is a sponsor of Mugglehead news coverage

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