PERTH (miningweekly.com) – A definitive feasibility study (DFS) for the Maricunga lithium brine project, in Chile, has estimated that a capital investment of $456-million would be required to develop a 20 000 t/y lithium carbonate equivalent (LCE) project with a mine life of 20 years.
ASX-listed Lithium Power International on Tuesday reported that the project was estimated to have a net present value of $1.3-billion before tax, and an internal rate of return of 29.8%, with a pay-back period of three-and-a-half years.
“The strong economics detailed in the DFS confirm the project’s overall attractiveness as previously identified in the preliminary economic assessment study,” said Lithium Power International CEO Cristobal Garcia-Huidobro.
The DFS is based on a resource of more than two-million tonnes of LCE, with the resource classified as either in the measured or indicated categories.
The DFS estimated that the project could generate operational revenue of $6.9-billion and operating cash flow of more than $5-billion, with operating costs estimated at about $3 772/t, placing Maricunga among the most efficient lithium producers.
“The project, through its joint venture management company, Minera Salar Blanco, is poised to advance to the next stage of development. Priorities will now shift to secure finance for the project and offtake agreements for the high-purity lithium carbonate output,” said Garcia-Huidobro.
Project infrastructure, including water rights, has been secured through long-term contracts for both project construction and operation, while access to the national power grid has been granted by Chilean authorities.
Discussions with financiers have started and would be finalised during 2019, while approaches from international companies for offtake agreements and project participation have also been received.
It is envisaged that construction on the mine and lithium production plant will begin in 2020, with first production of lithium in 2023.