TORONTO (miningweekly.com) – Lithium Americas Corp, which owns the Cauchari-Olaroz project in Argentina, is including potential potash production in its feasibility study due for the first quarter of next year, and could start production of the crop nutrient concurrently with lithium, CFO Ian Fodie said this week.

“If it is determined that potash production is economical, production will likely commence at the same time as lithium carbonate production,” he told Mining Weekly Online.

In an April preliminary economic assessment (PEA) of Cauchari-Olaroz, WorleyParsons estimated the project could produce 55 500 t/y of potash, and 20 000 t/y of lithium carbonate.

The PEA used an inferred resource estimate of 1.5-million tons of lithium carbonate and 4.4-million tons of potash.

”It is believed that potash production will further improve project economics, but this is dependent upon process studies currently being developed,” the PEA said.

Fodie noted in reply to emailed questions that all studies into potential potash production would be included in the definitive feasibility study, due for completion in the first quarter of next year.

Earlier this week, Lithium Americas CEO Waldo Perez said Cauchari-Olaroz is set to benefit from recent increases in lithium demand and prices, after two of the biggest producers raised their prices by 20% in June.

TSX-listed Lithium Americas hopes to build a 40 000-t/y lithium carbonate operation at Cauchari-Olaroz, for a total capital cost of $400-million, with the first phase due to start producing in 2014.

Canadian automotive firm Magna and Japanese conglomerate Mitsubishi jointly own about 17% of Lithium Americas, and have offtake rights for 37% of Cauchari-Olaroz’s intended production.