Peru boasts rare earths and lithium potential

Peru, the world's second-largest copper producer, could join the list of major lithium producers in the coming years and also be an important supplier of rare earths, according to the government’s geological, mining and metallurgical bureau Ingemmet.

The agency’s president, Luis Félix Mercado, told BNamericas that the growing global demand for lithium could accelerate the start of construction of the US$587mn Falchani project in the south of the country. According to its operator, Macusani Yellowcake, owned by Canada’s American Lithium, Falchani has resources estimated at 4.7Mt of lithium carbonate, and is considered the sixth largest hard rock lithium deposit in the world.

Regarding rare earths, Mercado said in the last decade Ingemmet has carried out studies that indicate that the potential of these elements is found mainly along the eastern mountain range, and that there are also indications of rare earths in intrusive igneous formations in the south (Cusco and Puno regions), in the north (Pataz province, batholith), and in the Cordillera Blanca, also batholith.

He added that the agency has also identified an important presence of rare earths, with industrial possibilities, in alluvial sands along rivers such as Chira in Piura region, Santa in Áncash, Pachitea in Huanuco, Urubamba in Cusco, Putumayo and San Gabán in Puno, and in Madre de Dios region.

Mercado also said Ingemmet is investigating the presence of rare earths in old abandoned tailings in various parts of the country, and that many of the mines could be reopened to extract the elements.

According to Benchmark Mineral Intelligence, by 2030 global demand will reach 2.4Mt of lithium carbonate equivalent, compared to 600,000t in projected production for this year.

The group estimates that the lithium industry will need investment of US$42bn to meet this demand between now and 2028.

Mercado said more mines will need to be opened to satisfy that demand, and believes that just as in the cases of copper, gold, silver and zinc, Peru could be among the top 10 producers.