The Australian mining company Galan Lithium Limited has announced significant progress at its Hombre Muerto West (HMW) lithium brine project in Catamarca Province, as part of activities carried out during the third quarter of 2024. The company highlighted that it became the first mining company to apply for Argentina's Large-Scale Investment Incentive Regime (RIGI), which offers tax benefits to large-scale projects in strategic and productive sectors like mining. "This initiative, combined with construction progress and a recent capital raise, reinforces Galan’s commitment to developing its projects in Argentina," the company stated.
By Panorama Minero
As part of the development of Phase 1 of the HMW project, Galan Lithium has accumulated approximately 6,000 tonnes of lithium carbonate equivalent (LCE) in its evaporation ponds. With overall construction progress reaching 45%, first production is expected to begin in the second half of 2025, when the company plans to achieve an initial production rate of 4,000 tonnes of LCE per year, with a potential expansion to 5,400 tonnes annually when market conditions are more favorable.
Galan’s strategy centers on producing lithium chloride (LiCl) concentrate, which is in demand by lithium converters supplying battery technologies, such as lithium iron phosphate. This approach avoids the need for experimental direct lithium extraction (DLE) technologies and a high-cost conversion plant to produce lithium carbonate.
Community Engagement and Permits
As part of its social commitment, Galan completed a public consultation with local communities of Antofagasta de la Sierra and Los Nacimientos, as well as with the Catamarca government. “Community engagement is a fundamental step before the issuance of Phase 2 construction permits. The Catamarca mining authority will evaluate the project’s environmental impact report, taking into account contributions from local communities,” the Australian company explained. Galan also owns the Candelas lithium project, located in the Salta puna region.
“Since the initial discovery of HMW in 2019, Galan has consolidated its concessions, doubled its resource estimate, and began Phase 1 construction in 2023. These developments have generated economic opportunities for local communities, including job creation, supplier engagement, and tax contributions,” the company detailed.
Large-Scale Investment Incentive Regime (RIGI)
On October 30, Galan became the first mining company to apply for the RIGI, a regime designed to attract large capital flows to Argentina by offering tax benefits and regulatory stability for up to 30 years to participating companies. The RIGI incentives include a reduced corporate tax rate of 25% (instead of the usual 35%), accelerated depreciation, exemptions on import duties and VAT, and greater flexibility in handling foreign currency. “These incentives will strengthen Galan’s ability to raise capital and maximize the development of the HMW project.”
Additionally, JP Vargas, Managing Director of Galan, emphasized the importance of collaboration with communities and the government for the long-term success of their operations in Argentina: “Local and governmental support is essential, and this collaborative relationship is a pillar of our success in the country, allowing us to make significant strides in a short period.”
