Name of the Project
Sal de Vida lithium project.

Location
Catamarca province, in Argentina.

Project Owner/s
Allkem (formerly Galaxy Resources).

Project Description
A feasibility study has confirmed that the Sal de Vida project will be a globally competitive, highly profitable producer of battery-grade lithium carbonate with the lowest-quartile capital and operating costs.

The project is targeting production of about 32 000 t/y of battery-grade lithium carbonate in three stages.

The feasibility study focuses on Stage 1, which includes brine extraction, evaporation and processing operations on site to produce 10 700 t/y of high-grade lithium carbonate.

Stage 1 has an estimated life-of-mine of 44 years, based only on reserves. Reserves are estimated at 242.4-million tonnes for 6.23-million tonnes of lithium carbonate. The layout and development plan for Stage 1 allows for the future expansion of subsequent stages.

A prefeasibility study has been completed on the two-stage expansion of the project, with an increase of 10 700 t/y of lithium carbonate for each stage.

The staged approach uses the same basis of design as in Stage 1, with project integration planning and detailed engineering to start immediately after Stage 1 milestones have been achieved.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
Stage 1 has a pretax net present value (NPV), at an 8% discount rate, of $809-million and an internal rate of return (IRR) of 43%, with a payback from the start of first production of two years.

The pretax NPV for all three stages is estimated at $2.1-billion and an IRR of 43%.

Capital Expenditure
Stage 1 is estimated at $153-million.

Development capital for all three stages is estimated at $466-million.

Planned Start/End Date
First production is targeted for late 2022. The Stage 2 expansion will start immediately after Stage 1 project milestones have been reached, while Stage 3 development is targeted for 2026, bringing the project to full production by 2028.

Latest Developments
Allkem has signed a nonbinding term sheet with the International Finance Corporation (IFC) over a potential $200-million project finance facility for the Sal de Vida project.

The IFC’s proposed investment comprises a $200-million debt packing, including up to $100-million from the IFC for a tenor of up to nine years, and the remainder to be funded by a syndicate of commercial banks.

The proposed funding structure will provide Sal de Vida with a syndicated loan agreement with the diversified international lender group at the asset level and will help to derisk the capital structure of the project.

Subject to finalisation of facility terms; legal due diligence; and approval from the Allkem board of directors, the IFC management and World Bank Group board of directors, the facility is expected to close before the end of 2022.

Key Contracts, Suppliers and Consultants
None stated.

Contact Details for Project Information
Allkem, tel +61 7 3064 3600 or email info@allkem.co.