Galan Lithium unconcerned by environmental permit freeze in Catamarca
Galan Lithium (ASX: GLN) is confident recent rulings halting the awarding of new environmental permits in the Argentinian province of Catamarca will not impact its Hombre Muerto West (HMW) lithium development.
A recent court ruling has temporarily halted new environmental permits and authorisations for the Los Patos River area of Catamarca until the provincial government completes an environmental impact assessment that takes into consideration the cumulative impact of all projects in the area.
Galan has informed shareholders that the ruling has no impact on existing and granted permits and environmental impact assessments and that it continues to progress construction of Phase 1 of the HMW project.
The company also noted that, as it is not planning to source water from the Los Patos River, it is also confident the court ruling will not have any impact on its HMW Phase 2 development plans or permitting process.
The company said the Phase 2 permitting application process remains on track with continued strong support from both local communities and government.
No expected impact
“We wish to confirm that a recent ruling by the Court of Justice in the province of Catamarca, Argentina will have no impact on Galan’s Phase 1 project and no expected impact on our Phase 2 development plans at Hombre Muerto West,” Galan managing director Juan Pablo Vargas de la Vega said.
“We are not located in the area under dispute and there is no river running close by to Hombre Muerto West that could be affected by similar rulings in the future.”
“We are confident that this is a localised issue which may potentially impact some other projects operating on the Hombre Muerto Salar but has no impact on Galan.”
The company noted that HMW uses very little fresh water and considerably less water than the subsequent conversion to lithium carbonate or hydroxide, underpinning the low environmental impact of Galan’s chloride strategy.
Furthermore, water for the HMW project is to be sourced directly from in situ dedicated non-potable water wells.
Strong Phase 1 progress
Galan is currently making strong progress on construction for Phase 1 at HMW that will produce a high-grade lithium chloride concentrate, with production expected in H1 2025.
HMW is being developed via four production phases, with the initial Phase 1 designed for the production of 5.4 thousand tonnes per annum of a lithium chloride concentrate by H1 2025.
Phase 2 is targeting 21Ktpa of a lithium chloride concentrate in 2026, followed by Phase 3 production of 40Ktpa by 2028 and finally a Phase 4 production target of 60Ktpa by 2030.
Phase 4 will include lithium brine sourced from both HMW and Candelas, Galan’s other 100%-owned project in Argentina.