Lithium projects in Argentina are going through a crucial stage linked to their start-up in the midst of a context of low prices and at the same time the need to accelerate the entry into production to absorb future demands. Under this framework, Australian company Galan Lithium reported that its flagship project, Hombre Muerto Oeste (HMW), located in Catamarca, has achieved a 40% completion rate in its construction works. The company now expects Phase 1 production to begin in the second half of 2025.
By Panorama Minero
The company provided an update on the progress of its Hombre Muerto Oeste (HMW) lithium brine project, of which it owns 100%. According to the company, lithium inventories continue to increase in the evaporation ponds that make up Phase 1, in line with Feasibility Study expectations, which will provide the necessary feedstock for the on-site processing plant. Additionally, in the past month Galan has restructured its construction activities to preserve capital, aiming to secure a definitive sales agreement and an associated funding package for the project in the short term.
The completion of the HMW Phase 1 project is approximately 40%, with the pond system at 60% capacity. The system design allows for an inventory of up to 10,000 tpa LCE (lithium carbonate equivalent) until the second half of 2025, without the need for additional processing. Approximately 750,000 m² of evaporation areas have been constructed, currently holding a contained inventory of 2,800 t LCE. This evaporation area is sufficient to produce a lithium chloride volume of approximately 3.0 ktpa LCE. The key processing parameters, including average brine well flow rates, lithium grades, and evaporation rates, are aligned with the Phase 1 Definitive Feasibility Study (DFS). "Due to the slower pace of construction activities, the first production from HMW is now expected in the second half of 2025," the company stated.
The HMW project is planned in four production phases. The Phase 1 Definitive Feasibility Study (DFS) focused on producing 5.4 ktpa LCE of lithium chloride concentrate by the second half of 2025, as per the approved production permits. The Phase 2 DFS aims to produce 21 ktpa LCE of lithium chloride concentrate in 2026, followed by the production of 40 ktpa LCE in Phase 3 by 2028, and finally, a production target of 60 ktpa LCE in Phase 4 by 2030. Phase 4 will include lithium brine sourced from both the HMW project and Galan's other project in Argentina, Candelas.
Following the announcement, Juan Pablo Vargas de la Vega, Managing Director of Galan, commented: "We are very proud of the solid progress made to date, especially given the current market conditions. During this time, the Board also made the prudent decision to strategically slow down construction activities to preserve our capital. Our current in-situ inventory of 2,800 t LCE has been the first step on our production pathway. Our inventory will continue to increase as we operate with low energy costs that only require brine pumps. As a result, once Galan finalizes sales and funding arrangements, which are progressing well, the company will be in a strong position to produce a competitive low-cost lithium product. It should be noted that we have received strong international market interest in our HMW lithium concentrate. In our view, this indicates that the current lithium pricing environment and market oversupply are not expected to be long-term trends."
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