Posco pushing ahead with Argentine pilot lithium plant

Construction of a lithium plant in northwest Argentina's Salta province moved a step closer.

Salta's production, labor and sustainable development secretary Graciela Pinal de Cid met with Kahn (Kwangbok) Kim, president of Korea's Posco in Argentina.

The two discussed the details of a US$450mn project to produce 25,000t/y of lithium hydroxide and lithium carbonate in the Salar del Hombre Muerto, according to a Salta government press release.

Kim presented a schedule of actions planned under the investment plan. He said construction of a pilot lithium hydroxide plant will begin sometime between April and November after the company obtains environmental approval from the mining ministry.

"The lithium hydroxide plant will be the first of its kind in Argentina, and will supply the growing demand for this product by the battery industry for electric vehicles," the government said.

The project involves construction of two plants. One in the north zone of the Salar del Hombre Muerto will be for the extraction and purification of lithium from brine, to produce lithium phosphate. The other plant in the General Güemes industrial park will produce lithium hydroxide and carbonate (25,000t/y LCE) using the phosphate.

Provincial mining secretary Daniel Blasco and Sungkook Chung, director of operations at Posco Argentina, also participated in the meeting.

POSCO AND LITHIUM

Last November, Australia's Galaxy Resources announced the sale of a package of tenements in the northern area of the Salar del Hombre Muerto to Posco for US$280mn.

Galaxy retained 100% of the tenements in the southern area of the salt flat to develop its Sal de Vida project. The two companies reached a cooperation agreement to maximize potential development, operational, infrastructure and logistical synergies for their respective projects.

Posco developed its own lithium production technology in 2010, which is internationally tested and operational. The company plans to invest 10tn won (US$8.9bn) in its lithium business over the next five years, Korean newspapers have reported.

The firm expects the Salar del Hombre Muerto output to be 100% exported, generating approximately US$360mn a year in foreign currency for the Argentine economy and 200 new direct jobs in the production stage, added the release.