Eramet takes step to secure 2024 start-up of US$680mn Argentine lithium project

Eramine Sudamérica, a unit of France’s Eramet, was admitted to Argentina’s exports investment promotion regime, which is expected to help the 2024 start-up of its US$680mn Centenario-Ratones lithium project in Salta province.

"With exports projected at US$74mn for 2024 and reaching US$300mn in 2026, it will be the first operation in the country where production is obtained 100% through a direct extraction method," economy minister Sergio Massa tweeted.

Eramet is now exempt from some strict currency controls and may use 25% of foreign currency obtained through exports in the country.

“Argentina has the possibility of becoming a key player in the context of the transition toward cleaner energy and the delivery of the [export promotion] certificate is a big step in the construction of a framework of trust and promotion of the mining sector,” Massa added.

Centenario-Ratones’ useful life is put at 40 years and is expected to produce 24,000t/y of lithium carbonate equivalent. Construction began in 1H22 in partnership with China’s Tsingshan. Full production is expected for mid-2025. (See more details in the presentation in the Documents box on the top right of the screen.)

Eramet claims that its in-house developed direct extraction method outperforms the traditional evaporation-based one and is more efficient as it reuses 60% of the water.

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Albemarle pledged to invest US$47mn in exploring for lithium in the Salar de Antofalla in Catamarca province, and US$500mn more if results are positive. 

The US company obtained the environmental permit to start a first exploration stage, which involves drilling about 15,000m over 14 months at the 290,000ha property.

"Albemarle's commitment begins to translate into concrete actions in the country with a new stage of exploration in Catamarca province, bringing jobs and sustainable development opportunities to the territory, and beginning the path toward the new lithium era in Argentina," country manager Luciano Berenstein was quoted as saying by local media earlier this month.

Argentina's lithium portfolio involves US$7.61bn. The country is the world’s fourth biggest lithium producer but could rise up the ranking once the Caucharí Olaroz, Mariana, Sal de Oro, Sal de Vida, Tres Quebradas and other projects start production.

Photo: Centenario-Ratones’ La Blanca camp. Credit: Eramet.