Industria
Global Lithium Supply on the Rise as Miners Creatively Prepare for Surging Demand Through 2030
In late April, (TSXV:LIS) (OTC:LISMF) filed a new Preliminary Economic Assessment (PEA) on its flagship Hombre Muerto North Lithium Project. The new PEA further bolstered plans to advance the development of a lithium carbonate production facility with an annual output of 15,600 tonnes. The assessment revealed a promising financial outlook, with an after-tax Net Present Value (NPV) of US$938 million and an Internal Rate of Return (IRR) of 31.6%. The project has a payback period of just 2.5 years. (see note 1 below )
"We are very pleased to have achieved this important milestone for the HMN Li Project," said Adrian F.C. Hobkirk , Founder, President and CEO of . "The robust economics and room for expansion indicate a promising future for ."
Since the PEA filing, has also provided an update detailing progress on its first pumping well to be located on the largest claim block in the 5-claim salar located HMN Li package—the 2,089-hectare Alba Sabrina block. The well is currently pumping at a rate of 25L/second, with a pumping rate increase expected to come after some maintenance takes place.
wants to mention in the update expressions of interest from several companies involved in the lithium industry. They're currently involved in discussions regarding financial support and/or project participation, which included a recent 3-day site visit completed by an unnamed lithium project developer.
Third-party interest in assets isn't new, as the company established a pivotal cooperative development agreement for the HMN Li Project with Korean conglomerate , marking a significant step towards lithium production. This arrangement followed up a significant announcement at the end of 2023, when updated its NI 43-101 technical report for the flagship HMN Li asset. The update revealed a substantial 175% increase in lithium resources, now totaling over 1.58 million tonnes of lithium carbonate equivalent (LCE). ( see note 2 below )
At the Port of Vitoria in Brazil , (NASDAQ: SGML) (TSXV: SGML) announced it has commenced loading its ninth shipment of Quintuple Zero Green Lithium, totaling 22,000 tonnes, destined for , formerly . The company states it has demonstrated significant progress in monetizing a commercial premium that reflects the value in use generated for its customers by its proprietary Quintuple Zero Green Lithium product, which achieved a fixed formula of 9% of lithium hydroxide quoted at LME represents a meaningful increase over previous prices achieved.
News of the shipment came quickly after a previous announcement from , regarding an upgrade of its proven and probable reserves at its flagship Grota do Cirilo hard rock lithium mine, by a significant 40% (or 22.2 million tonnes).
"This significant increase in mineral Reserves demonstrates our commitment to continuously invest in Brazil to unlock the full economic potential of our mineral concessions," said Ana Cabral Co-Chairperson and CEO of . "We believe Brazil is poised to become one of the global leaders in Lithium production as a result of its optimum conditions for integrated lithium industrial processing and mining: legal certainty in a consolidated mining code, rule of law, straightforward permitting processes, tropical climate, green and affordable renewable energy and power lines infrastructure."
Also for other projects in Brazil , (TSXV: LTH) (OTCQX: LTHCF) recently arranged for an $11 million financing which will go towards the company's two flagship projects, Itinga and Salinas. The private placement comes right after announced it had signed an agreement to acquire the remaining 15% of select Salinas properties, located within the Curralinho Pegmatite Field of the lithium-rich Araçuaí Pegmatite District, in Minas Gerais, Brazil . Earlier in April, had announced its maiden mineral resource estimate (MRE) and initiation of its preliminary economic assessment (PEA) at the Salinas Project, further increasing the company's regional mineral resources by 45%.
"The MRE we have already established at Salinas represents a cornerstone asset in our portfolio of projects and we strongly believe that our plans to explore adjacent properties could significantly scale our mineral resources," said Blake Hylands , CEO of . "We are very pleased to have secured a path to 100% ownership of these prospective properties."
Over in Chile , the country's economic development agency recently reached an agreement with (NYSE: ALB) to increase its production quota by 240,000 metric tons of LME. The proposed increase would in effect raise production by roughly 50%, from its current amount of about 460,000 metric tons of LME. The quota increase announcement came just one day after news broke that would pay US$15 million to the Chilean government to end an ongoing lithium controversy.
Meanwhile, in the United States , also announced it had agreed to deliver extracted limestone to a regional rock quarry adjacent to its proposed Kings Mountain lithium mine in North Carolina . is currently preparing permits to submit to NC regulatory agencies this year, and undergoing studies and social impact assessments to determine the feasibility of reopening the mine. According to , part of the company's plan includes repurposing byproduct materials to benefit the local economy.
In south-west Arkansas and east Texas , (NYSE-American: SLI) (TSXV: SLI) recently secured a partnership with multinational energy company , which has agreed to invest up to $160 million and secure a 45% stake in projects. As per the deal, is starting with a $30 million cash payment to at closing, and a work program solely funded by of $60 million .
"We believe this partnership with a global energy major validates the quality of our team, our DLE flowsheet and experience, and our world-class lithium-brine resources in Arkansas and Texas ," said Dr. Andy Robinson , Director, President and COO of . "We're at a crucial stage in our Company's growth and this partnership with will be fundamental to the continued de-risking and execution of these important projects."
The report titled, was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., and SEDAR filed April 30, 2024
, Mark King , PhD, PGeo, Peter Ehren , M.Sc, MAusIMM, September 5th, 2023 and SEDAR Filed November 6, 2023
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