Kachi Obtains DIA and Advances Toward the FEED Engineering Stage

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Kachi Obtains DIA and Advances Toward the FEED Engineering Stage
The first phase of Kachi contemplates a capacity of 25,000 tonnes per year of LCE.
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Lake Resources received the Environmental Impact Declaration for the lithium project in Catamarca. The company will begin FEED engineering and move forward with its RIGI application.

By Panorama Minero

Lake Resources obtained the Environmental Impact Declaration (DIA) for the Kachi lithium project, in the province of Catamarca, and announced its advancement toward the Front-End Engineering Design (FEED) stage.

The authorization was granted by the Catamarca Ministry of Mining following the completion of the public consultation process and assessments carried out by various provincial agencies. The DIA completes the procedure corresponding to the Environmental and Social Impact Assessment for the exploitation stage.

According to Lake Resources, the authorization includes obligations that must be fulfilled before the start of commercial operations.

In connection with the granting of the DIA, the company also committed to contributing US$1 million to the Mining Royalties Trust Fund of the Province of Catamarca. The contribution will be made in installments between October 2026 and June 2027 and, according to Lake, the funds will be allocated to provincial infrastructure projects with an impact on local communities.

Kachi Enters the FEED Stage

With environmental approval secured, Lake Resources will advance Kachi toward the FEED stage, based on the Definitive Feasibility Study (DFS), its subsequent addendum and the engineering work developed together with Hatch and Lilac Solutions.

This new stage will focus on further defining the civil, structural, mechanical and electrical engineering packages corresponding to the first phase of the operation, which is planned to have a capacity of 25,000 tonnes per year of lithium carbonate equivalent (LCE).

The work will also include the procurement of long-lead equipment and the advancement of commercial agreements with critical suppliers.

In parallel, FEED engineering will assess aspects related to early works, construction logistics, modular assembly schedules and the mitigation of operational risks at the Kachi site.

The technical documentation generated during this stage will also be used in financing discussions that Lake is holding with financial advisers, export credit agencies, potential offtakers and prospective strategic partners. Citi and J.P. Morgan are acting as the company’s principal financial advisers.

David Dickson, Managing Director and CEO of Lake Resources, described the granting of the DIA as “the most important milestone in the history of Lake Resources and Kachi” and stated that the new stage will enable the project to move from a phase focused on permitting toward detailed project execution and financing.

The executive also highlighted the participation of the Catamarca Ministry of Mining, provincial authorities and local communities throughout the assessment process.

DLE Technology and Next Steps

The development of Kachi contemplates the use of direct lithium extraction (DLE) technology from Lilac Solutions. According to Lake Resources, the system was selected with the aim of reducing the impact on water resources and would allow more than 99% of the processed brine to be returned to the aquifer.

Following the granting of the DIA, the company also plans to move forward with submitting Kachi’s application to join the Large Investment Incentive Regime (RIGI), a process that, according to the company, is at an advanced stage of preparation.

According to Lake Resources, the FEED phase represents the final planned engineering stage before a potential Final Investment Decision (FID).

Published by: Panorama Minero

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