- Lithium Power International (LPI) is moving to a staged approach to its majority owned Maricunga lithium project in Chile, after a number of developmental upsets this year
- The company previously signed a memorandum of understanding to develop a larger scale version of the project by folding it into the Maricunga Salar project, which is owned by Chile’s state-run miner Codelco
- However, recent socio-political tensions in the region, as well as the impact of the COVID-19 pandemic, have hindered Codelco’s mandatory due diligence processes and left the memorandum in limbo
- As a result, the project operator is now moving to a staged approach to the site’s development, which will first focus on already-approved mining concessions
- A mining operation based solely on these initial concessions could generate up to 15,000 tonnes-per-year of high-quality lithium carbonate over a 20-year mine life
- Lithium Power International closed 3.64 per cent up and is trading at 28 cents per share
Lithium Power International (LPI) is moving to a staged approach to its Maricunga project in Chile, following a series of developmental upsets.
Back in 2019, Lithium Power’s majority-owned site operator signed a memorandum of understanding to fold the project into the Maricunga Salar project, which is currently being developed by Chile’s state-run miner Codelco.
However, recent socio-political tensions in the region, further exacerbated by the impact of COVID-19, have hindered Codelco’s mandatory due diligence processes and left the memorandum in limbo.
As a result, LPI is forging ahead on its own, for now, and has laid out a staged development of the project, which will unlock the lithium reserves and expand the site’s processing capabilities over a number of tranches.
The company intends to start with what it calls the “old code” concessions. These are mining concessions that have been grandfathered into the company’s existing licenses and do not require any further approvals to unlock.
A mining operation based soley on these intial concessions could generate up to 15,000 tonnes-per-year of high-quality lithium carbonate over a 20-year mine life.
By temporarily placing the Condelco memorandum by wayside, LPI hopes to advance the site with lower capital expenditures and without further permitting processes.
Lithium Power CEO Cristobal Garcia-Huidobro admitted that project has been through many challenges, and the COVID-19 pandemic has been no different.
“We initially envisioned a larger project that could, in the short term, have partly consolidated the Maricunga Salar. We now believe that a staged approach will provide a better outcome for our shareholders while minimising further delays,” he said
“The revised project is smaller than our previously announced development, but the decision to advance with Stage One reflects the world class nature of our project. It will provide maximum shareholder value as soon as possible,” he added.
Cristobal went on to say that that company is looking forward to advancing the new plans with the support of the Chilean authorities.
Lithium Power International closed 3.64 per cent up and is trading at 28 cents per share.