Lithium changes in the northwest, between investments and environmental alert

Lithium, says white goldcan attract foreign investment for the economies of the Northwest Argentina (NOA). Installing a factory capable of producing 20,000 tons a year in Pun, requires US $ 400 million, 250 direct jobs and over a thousand indirect jobs. Lithium is essential for mobile phones, tablets, laptops and electric cars. The demand for these vehicles in a few years will impose an increase in production.

"The growth of lithium generates a huge amount of jobs since 90% of the local workforce is occupied by companies, "says Mariano LamotheUndersecretary of Mining Development. It also highlights the quality of wages. According to the Minister of Employment, last year in the non-traditional mining sector the average monthly income was $ 102,953.

In 2018, the Argentina was the leading destination for lithium investment in the world, ahead of Australia and United States. Private sector actors and the public agree that this is due to the differences between the mining codes of the so-called lithium triangle countries. In Bolivia, mineral deposits are nationalized and in Chile the state concentrates its production.

"We are more attractive because we have a more flexible mining code and we also allow participation in private capital," said Carlos Oehler. President of the state-owned company Jujuy Energy and Mining (JEMSE). From 2015 to date, the exploratory budget and lithium operations have increased by more than 900% in Argentina.

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The Ministry of Mines forecasts for 2023 the maximum production capacity per province: first Salta, with 38% (110,000 tons per year); second Catamarca, with 34% (100,000) and a third Jujuy, with 28% (80,000). Although it has grown, lithium is still a small market. But the lithium ton has gone from $ 4,000 to $ 14,000 in four years because of the imbalance that will occur in the near future, when the supply will be overwhelmed by demand.

The eyes of the world are placed in South America for two reasons. One, because the Argentina, Chile and Bolivia concentrate more than 75% of the reserves. The country has reserves for 100 years counting only salines known until now and likely to be exploited. The other reason: extraction processes are cheaper and more environmentally friendly than elsewhere. Lithium can be found in mineral rocks or in a highly concentrated solution (called brine) located under the Puna Salt Fund. In the first case, the extraction procedure is that of conventional extraction. This involves an expensive and extremely dirty process. Australia, the world's largest producer, is doing this. The second asks for more time. The lithium located below the salt is obtained by evaporation of water brines. This is done in large pools 30 centimeters deep, 200 meters wide and 800 meters long.

Global lithium reserves increased by 21% (to 82.8 million tonnes) from 2017 to 2018. There are reserves for 376 years. Behind Australia, with nearly 60% of production, are Chile and Argentina, with 24% and 11%, respectively.

Jujuy has five salars. Two of them, Olaroz and Cauchari, are in production. The other three, Jama, Guayatayoc and Salinas Grandes, are still in exploration. It is one of the provinces that has made the most progress in recent years in the development of unconventional mining. He created a state corporation with "The goal is for the province to participate in the overall mining sector so that it does not just have 3% of the royalties set by the law, "says Oehler. "JEMSE has 35,000 hectares located in areas of high probability of lithium and proposed to private capital to conduct exploration studies," he adds.

Miguel Soler, mining secretary of Jujuy, says that Sales de Jujuy (a company in which JEMSE is involved alongside Japanese automakers Toyota and Canadian Orocobre) has a production capacity of 17,500 tons and plans to expand it to 42,500 tons. Exar, located in Cauchari and owned by the Canadian Lithium Americas and Chinese Gangfeng Lithium, can produce 25,000. Between the two, they add investments for $ 700 million and 500 direct workers. At the construction stage, prior to exploration, the number of jobs rose to one thousand.

In Salta, there are 19 salaries and in each of them, as stated by his mining secretary, Daniel Blasco, "there is at least one company doing some work". Salta is a clear example of the lengthy processes required by lithium, which last about six or seven years since completion of the feasibility study. "Most cases are still in the primary stage, but in the El Rincón Salar, a demonstration plant with a new technology has been set up, in which the steps necessary for extraction are underway of completion, "he said.

Consulted on the possibilities of To industrialize lithium in the province, that is, to make products such as batteries, Blasco says, "This is not the right time, many conditions are needed, not just the presence of lithium. We must first encourage primary production and, once it is consolidated, encourage diversification. "

The Fénix mine is the only project in production phase in Catamarca. The salar dealership is Livent, from the North American company FMC Lithium, which historically produced nearly 15,000 tonnes per year. After completing the expansion of last year, they reached 21,500 people. According to comments from the Provincial Mining Secretariat, the new goal is to increase capacity to 40,000 people. To achieve this, Livent will invest 300 million US dollars.

The other Catamarca projects, Tres Quebradas and Sal de Vida, are currently undergoing a feasibility study and will be operated by Liex and Galaxy, respectively. When they start producing in 2025, Catamarca will have reached a capacity of more than 100,000 tons. To do this, they must invest about $ 500 million each.

Environmental alert Pia Marchegiani, Director of Environmental Policy of the Foundation for the Environment and Natural Resources (FARN), states that "The lack of control on the part of the State of Jujuy is worrying".

"Companies say that they do not affect the environment because they only pump brine, but if more fluid is extracted than the one that enters the water system, freshwater reserves are salinized. If the aquifer dries, the environment eventually deteriorates, "says Marchegiani.

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