Lithium Americas (TSX, NYSE: LAC) will take up the structure of its Cauchar-Olaroz lithium allocation in Jujuy, Argentina, after stopping it in March to comply with the country’s movements opposed to the coronavirus pandemic.
The company, which is raising the asset with that of the Chinese company Ganfeng Lithium, had to suspend the structure at Cauchar-Olaroz in early July after two employees tested positive for covid-19.
“We remain focused on protecting our staff and communities, while we coordinate strongly with Jujuy Province to function responsibly and safely as we begin to restart structure activities in the coming weeks,” said President and CEO Jon Evans.Quarter.
The Cauchar-Olaroz lithium mine is expected to succeed in the full production of 40,000 tonnes consistent with the year by the end of 2022.
The company’s inventories peaked at one year on Friday in Toronto in the news.They reached an intraday high of C$10.57, before ending with a 7.7% hike to $10.44.The upward trend continued Monday, with Lithium Americas’ inventory rising 7.95% to C$11.27 in Toronto at 0957 EDT.
Vancouver-based mining company said Caucharí-Olaroz 47% total as of June 30, with 75% or $427 million of the planned capital committed and 54%, or $304 million spent.
He also stated that the joint venture’s spouse, Ganfeng Lithium, expanded its stake in Cauchar-Olaroz from 50% to 51%.The deal is expected to close until the end of the third quarter, Lithium Americas said.
According to an updated feasibility study, published last year, the proposed lithium mine is expected to produce 40,000 tons of battery steel consistent with the year.
It was scheduled to start operations in early 2021, with production expanding to 15,250 tonnes and 36,000 tonnes next year and 2022, respectively.
The mine would succeed in full production until the end of 2022, producing 40,000 tonnes consistent with 2023 to 2060.
The allocations were made before covid-19 reached the world economy.The company is recently reviewing the effect of allocation suspensions on schedule and budget.He said it would provide an update once those tests are completed.
Argentina belongs to South America’s “lithium triangle”, which includes neighbors Chile and Bolivia and accounts for more than 60% of the world’s annual lithium production.
Prior to the coronavirus pandemic, the South American country planned to export a value of $2.1 billion of lithium per year, according to a government presentation, compared to the $190 million in the sector last year when it shipped 50,000 tons of white metal.
Lithium miners operating in Argentina last month created a commercial organization that aims to stimulate the progression of new projects and allow the pricing of steel for batteries in foreign markets.
The association, called Calbafina, has set itself the first goal of creating a lithium carbonate index to track and publish the value of soft metal, key to the progression of electric vehicles.The “USD INDEX LI” would imply lithium values consistent with the ton in US Dollars.
Argentina’s efforts to increase lithium exports have already faced challenges, as major rivals, Australia and Chile, are rising their deposits and costs are falling hampering investment.
Global demand for lithium tripled between 2015 and 2017 and, according to Citi’s most recent report, demand could rise to 500% by 2035.
Meanwhile, prices are expected to fall another 5% in the three months prior to September to $4,800 a tonne, but are expected to fall in the fourth quarter of the year, the investment bank predicts.
By 2022, costs can reach up to 42% to $7,200 consistent with ton and $9,000 consistent with tonne through 2030.