Name of the Project
Sonora lithium project.

Location
Sonora state, Mexico.

Project Owner/s
Ganfeng bought Bacanora Lithium in 2022 when the latter was embarking on the development of the Sonora project.

Project Description
A 2018 feasibility study on the project confirmed the positive economics and favourable operating costs of 35 000 t/y of battery-grade lithium carbonate.

Sonora is currently one of the biggest lithium resource projects in the world. The project has total mineral resources of 559-million tonnes grading 8.82-million tonnes lithium carbonate equivalent.

The feasibility study envisages an openpit operation using continuous miners to mine the ore zones and a truck-and-shovel fleet to remove the waste material. An estimated 37.1-million tonnes of ore will be mined over the planned 19-year mine life, with a lithium grade of 4 151 parts per million and an average stripping ratio of about 3.4:1 over the life-of-mine.

The process plant has been designed to initially process 1.1-million tonnes a year of ore during Stage 1 of the project, subsequently increasing to an estimated 2.2-million tonnes a year at Stage 2 and producing 17 500 t/y and 35 000 t/y of lithium carbonate respectively.

The plant design also includes a circuit to produce up to 30 000 t/y of potassium sulphate and/or sulphate of potash product through a series of evaporation and precipitation stages.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The feasibility study estimates a pretax net present value, at an 8% discount rate, of $1.25-billion and an internal rate of return of 26.1%, with a simple payback Stage 1 of four years.

Capital Expenditure
Stage 1 of the project is expected to cost about $419.62-million and Stage 2 $380.26-million.

Planned Start/End Date
Not stated.

Latest Developments
Ganfeng Lithium filed an international arbitration case against Mexico in June 2024 after Mexico cancelled the project.

Ganfeng’s plans to build the country’s first commercial lithium mine were put on hold in April 2023 following the passage of a Bill that would give the State total control of lithium mining. The Chinese firm had previously sought to form a public-private partnership.

After years of trying to resolve the matter in local courts, Ganfeng registered a case on June 21 at the World Bank’s International Centre for Settlement of Investment Disputes, with Mexico’s Economy Ministry listed as the respondent.  

Key Contracts, Suppliers and Consultants
Ganfeng (engineering, procurement and construction).

Contact Details for Project Information
Bacanora Minerals, tel +1 403 237 6122, fax +1 403 237 6144 or email info@bacanoraminerals.com.