Name of the Project
Hombre Muerto West project.
Location
South American lithium triangle, which spans the borders of Argentina, Bolivia and Chile.
Project Owner/s
Galan Lithium.
Project Description
The definitive feasibility study (DFS) on the Hombre Muerto West project has been separated into two phases.
Phase 1 focuses on the production of a lithium chloride concentrate as governed by the production permits. The DFS optimisation work continues and will culminate in the release of a Phase 2 DFS, addressing a full 20 000 t/y lithium carbonate equivalent production rate.
The Phase 1 DFS has delivered compelling economics from an initial 5 367 t/y lithium carbonate equivalent operation, targeting a high quality, 6% concentrated lithium chloride product (equivalent to 12.9% lithium oxide, or 31.9% lithium carbonate equivalent).
Potential Job Creation
Not stated.
Net Present Value/Internal Rate of Return
Phase 1 delivers an after-tax net present value, at an 8% discount rate, of $460-million and an internal rate of return of 36%, with a payback of two years from the start of construction.
Capital Expenditure
$104-million, before contingency.
Planned Start/End Date
Phase 1 is expected to enter production in the first half of 2025, and Phase 2 in 2026.
Latest Developments
Procurement of long-lead construction items is under way.
Key Contracts, Suppliers and Consultants
Ad-Infinitum (feasibility study work and lithium recovery method); SRK Consulting (mineral resources and reserve estimates); AIA Engineering, Consulting Services International and EIC Engineering (pond designs and water contour channels); M3 Engineering and Technology Corporation (reviewing and documenting the recovery method and the civil material takeoff quantities for ponds and water contour channels, developing the engineering design of the reagents and filtering plant); M3 (project layout, infrastructure designs, capital cost and operating costs estimates and economic evaluation); and Wood Mackenzie and iLiMarkets (price estimates of the lithium carbonate and lithium chloride concentrate).
Contact Details for Project Information
Galan Lithium, tel +61 8 9322 6283 or email admin@galanlithium.com.au.