Lithography: what are the projects, what stage are they at and behind

Argentina is the third largest lithium producer, behind Australia and Chile, and in recent years, it has positioned itself as one of the world's leading suppliers of lithium carbonate, a major badet in the manufacture of batteries for the electronics industry, telephony cellular and even the possibility of climbing the development trend of hybrid and electric cars.

The government of Mauricio Macri, as before Cristina Fernández, he did not want to miss this reef and launched this year in Jujuy, a key province in the production of these mineral and allied lands, by the presence of the radical governor Gerardo Morales, lithium table, with the aim of promoting the development of this sector in the north-west of the country.

According to a report from the Rosario Stock Exchange (BCR) released Friday, Argentine exports of lithium carbonate have tripled its value over the last 10 years, totaling approximately 251 million USD in 2018. The main destinations of these offices are the United States, Japan, China and South Korea.

The work, whose authors were the Julio Calzada, chief economist and economic badyst Desire Sigaudo of the Rosario Stock Exchange, notes that the Argentine exports of the lithium segment accounted for only 5.1% of deliveries of the mining sector in 2018, which is the sixth largest export complex in the country. However, exports of lithium derivatives showed excellent performances, their volume having increased by 50% during the last decade (2008-2018).

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"Thanks to the improvement in international prices, the exported value of lithium complex has increased by an even greater proportion, multiplied by 3 over the past 10 years," says the report, which also predicts that external sales in 2025 could be four times higher than current sales and the sector would contribute 10% of the currencies generated today by the sector and agri-food.

The authors of the book pointed out that "lithium represents an important export opportunity for Argentina, with a stable and high price and thanks to new production projects". This despite the reports, such as those of Benchmark Mineral Intelligence, which told the Financial Times that 2019 was a "devastating year""or, like that of Analysts at Morgan Stanley predict a 45% drop in prices by 2021.

This is why the authors' projections are based on different possible scenarios proposed by the Mining Policy Department of the Ministry of Production and Labor. They are therefore forecasting lithium exports for the years 2022 and 2025.

Scenario 1This is the current development scenario and the Secretariat believes that its likelihood to occur is likely. It takes into account 4 ongoing operations (including extensions) and involves an investment of $ 1,442 million.

Scenario 2: includes the announced works and the Secretariat postulates that their development is possible. It considers 10 ongoing operations and the investment would amount to USD 3,690 million.

Scenario 3As Scenario 2, it includes the advertised jobs. It is presented as a potential development scenario designed by the Secretariat. 15 ongoing operations and investments of US $ 5,234 million are supported.

The stock market report draws a Very fine X-ray on the reality of lithium at the local level, with active mines and projects in development, detailing in each case their development phase and the investors or companies that run them. The idea of ​​the document with this map is to show the potential of the sector, to project it.

Based on this survey they calculated that in 2022, Argentina should have an installed capacity five times higher than the current one, which would allow for export and export projections.

According to the work, there are two operating lithium mines in the country with a combined installed capacity of 42,000 tonnes equivalent ore (LCE). "If the plans for expansion in these mines were realized and from the start of new lithium projects, Argentina would reach an installed capacity of 129,000 tons of LCE in 2022," they said. They added that "a ton of lithium metal (Li) equals 5,323 tonnes of lithium carbonate equivalent (ECL)".

"Currently, lithium mining projects in 23 salt mines located in the territory of Jujuy, Salta and Catamarca have been set up in Argentina," they said. Among these projects, Olaroz in the province of Jujuy and Fénix in Catamarca, they are the only ones already in the production phase; The latter is operated by American Livent Corp and has an installed capacity of 22,000 t LCE. Olaroz is in charge of the Australian mining company Orocobre, the Japanese Toyota and the national national company JEMSE (state-owned company Jujuy Energy and Mining). Its installed capacity currently stands at 17,500 t LCE.

In addition, both mines have expansion plans to reach the installed capacity of 40,000 t LCE each: in the case of Olaroz, this goal should be reached in 2020 and at the Fénix mine in 2022.

Cauchari-Olaroz to Jujuy and Centenary-Mice in Salta these are operations currently under construction; The first is being developed by the Canadian Litium Americas, Chinese Ganfeng and JEMSE, and is scheduled to enter service in 2020 with an installed capacity of 25,000 t LCE. The project Centenario Ratones, led by the French Eramet, aims to start its activities in 2021 with an installed capacity of 20,000 t LCE.

In addition, five companies undergoing feasibility testing: Get out of Los Angeles, Salt of life, Salar del Rincón, pastures and three broken.