Wartsila Oyj Abp (HEL: WRT1V), a tech outfit devoted to marine and energy markets, secured a three-year operations and management (O&M) contract at a major lithium operation in Argentina this week.
The company will manage a mine and lithium carbonate processing plant developed by the Eramet S.A. (EPA: ERA) subsidiary Eramine Sudamérica SA over the past two years. In particular, Wärtsilä will be responsible for taking care of the power plant supplying electricity to the remote off-grid mine site.
It produces energy with four engines that have a 28-megawatt capacity.
“We cannot operate without power, so it makes sense for us to have the O&M experts operate and maintain the plant,” Leonardo Guevara, Eramine Sudamerica’s supply chain director, said.
The mine, situated in the Salta province’s Centenario Ratones salt flat, is subject to strong winds and low temperatures in its desolate location. However, Wärtsilä says it will ensure that the power plant supplies steady reliable energy regardless.
Eramine will commence production at the chemical plant this year and produce its first ton of lithium carbonate. The producer will then ramp up its production capacity to 24,000 tons per annum by the end of 2025.
“We are providing Eramine high energy availability to ensure continuous mine production throughout the year,” Jorge Alcaide, Wärtsilä energy and business director, said.
Read more: Lithium South expands well installation program at Hombre Muerto North
Read more: Lithium South explores alternative production methods at Hombre Muerto North
Eramet invests heaps of cash into Argentina lithium
Eramine’s parent mining giant Eramet agreed to invest nearly US$3 billion into Argentina and Indonesia’s lithium industries last year.
The Salta, Catamarca and Jujuy provinces are undergoing consistent development by multiple mining companies looking to cash in on growing demand for lithium metal and chemicals.
In Salta, the junior miner Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is currently developing a vast lithium resource in partnership with the major operator Posco Holdings Inc (KRX: 005490).
Meanwhile in Catamarca, a private mining company based out of Dubai just invested three-quarters of US$1 billion into a 9,000-hectare brine operation that will be developed over the next four years.
Operators in Jujuy include the Minera Exar joint venture between Lithium Americas (Argentina) Corp. (TSX: LAAC) and Ganfeng Lithium (SHE: 002460); and Arcadium Lithium plc (NYSE: ALTM), which runs the Olaroz lithium carbonate production plant in the province.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
