Galan Lithium Limited (ASX: GLN) has signed a pivotal commercial agreement with the Catamarca Government in support of the grant of permits for the commercialization of lithium chloride concentrate from the Hombre Muerto West lithium brine project (HMW).
Juan Pablo (JP) Vargas de la Vega, commented: “Galan would firstly like to acknowledge and sincerely thank the government of the Catamarca Province in Argentina for their continued support. We look forward to continuing to work side by side with our local communities and authorities, towards achieving mutually beneficial and sustainable outcomes for both the people of Argentina and Galan’s shareholders, through the further downstream development of lithium processing routes such as lithium carbonate, hydroxide, or other alternatives, in Catamarca.”
The permits will allow for the domestic sale or export of lithium chloride concentrate, Galan will however continue to endeavour to place lithium chloride concentrate locally. Galan commits to pursuing further downstream processing routes (e.g. lithium carbonate, hydroxide, or other alternatives) after four years, in a location outside the Hombre Muerto salar.
The company explains that the next step in the process is the formalization and the passing into legislation. Catamarca Governor Raúl Jalil and Galan Lithium Ltd Managing Director Juan Pablo Vargas de la Vega in Catamarca, the HMW project is separated into four production phases. The initial Phase 1 Definitive Feasibility Study (DFS) focused on the production of 5.4Ktpa LCE of a lithium chloride concentrate (currently under construction) by H1 2025, as governed by the approved production permits.
The Phase 2 DFS targets 21Ktpa LCE of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40Ktpa LCE by 2028 and finally a Phase 4 production target of 60Ktpa LCE by 2030. Phase 4 will include lithium brine sourced from both HMW and Galan’s other 100% owned project in Argentina, Candelas.
“This commercial agreement is an important milestone in implementing Galan’s strategy, providing access to a larger international customer base at potentially improved sales and funding/prepayment terms. The agreement is expected to provide tangible progress towards the granting of Phase 2 permits on our journey to becoming the next lithium producer in Argentina.” Added Juan.
To read more about this, please visit www.galanlithium.com.au
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