The Falchani project, located in the Puno region, could begin producing lithium carbonate at the end of 2027.

Known as the new “white gold”, lithium has become one of the most coveted minerals worldwide, given its growing demand in the international market due to its multiple uses in various industries, from technology to medicine.

"In recent years, the main source of demand for lithium has come from the transportation sector, which is a trend that is expected to continue growing progressively, as internal combustion cars begin to be progressively replaced by less polluting alternatives," the company indicated. General Directorate of Mining Promotion and Sustainability of the Ministry of Energy and Mines (Minem).

In this context, the director of Mining Promotion of Minem, Carmelo Condori, pointed out that, given this growing demand, the Andean Trapezium area (between Argentina, Chile, Bolivia and Peru) began to be explored where it is expected that there are lithium reserves for The explotion.

“It is thought that there is lithium in that area of South America, so preliminary studies are being carried out there, considering that the mineral may be in certain pockets, not in that entire strip,” he said.

The Minem specialist indicated that Peru is in the stage of probable reserves, especially in the southern area (departments of Puno, Tacna, Moquegua, Arequipa and Cusco), where it is being explored because there is evidence that there could be lithium.

“It is not yet quantified, because it is only a potential or an expectation that there could be lithium. First, investigations must be done to determine its existence and for now the company Macusani Yellowcake is doing it in Puno, for which it is finishing its permit and authorization procedures to begin exploration,” he said.

Carmelo Condori also commented that there are other initiatives, on a very small scale, that are superficially evaluating the rocks in some areas of southern Peru.

“They are still very superficial investigations, because when they have already identified an area of interest they will begin to request permit and authorization procedures to begin explorations,” he explained.

“It is being investigated, at a prospective level, that is, aerial and surface investigations, the rocks are analyzed and, from there, the possible existence of a lithium deposit is identified,” he added.

First studies

In Peru, the first lithium studies were carried out by the Geological Mining and Metallurgical Institute (Ingemmet) in 1981, with evaluations in the Laguna Blanca salt flats in Tacna, Salinas in Arequipa and other lagoons in the high Andean part of Moquegua and Tacna. . But these investigations were not deepened.

Until, in 2018, when lithium reached notable importance due to its applications and economic value, Ingemmet began two evaluation projects: one in the southern zone and the other in the central-northern zone.

At the same time, the discovery of a large lithium deposit was announced in the Corani district, Carabaya province, Puno department. The project took the name “Falchani” and is run by the company Macusani Yellowcake.

However, Ingemmet continues with its preliminary investigation work (prospecting), for which two Areas of Non-Admission of Mining Requests (ANAP) were declared, authorizing the state entity to carry out mining prospecting work for three years.

Mining potential studies to prospect for lithium are carried out in the ANAP Carumas with 6,800 hectares (Moquegua) and the ANAP Coasa with 9,600 hectares (Puno).

“The State, through Ingemmet, prospects and identifies the potential of resources, in this case lithium. Then, a tender is put out to bid on a private company that may be interested in developing exploration,” explained Carmelo Condori.

Lithium in Puno

The “Falchani” project of the company Macusani Yellowcake (subsidiary in Peru of the multinational Plateau Energy Metals Inc, whose base is in Canada) is the most advanced initiative in terms of lithium.

“We presented the semi-detailed Environmental Impact Study (EIA) in October of last year, which was evaluated in March and had a first round of observations. We have raised all the observations and it is again in the evaluation process,” explained the general manager of Macusani Yellowcake, Ulises Solís.

“Within a period of two months we must have the approval of said study, which aims to bring the 9.5 million tons of lithium carbonate that we have as resources to proven reserves,” he added.

Ulises Solís indicated that, once the proven reserves are certified, the “Falchani” project is fully bankable and the environmental impact study for the exploitation of the lithium deposit will immediately proceed.

“As long as our semi-detailed EIA is approved in July, in five months we will create the 420 platforms that we have estimated and we will calculate the reserves. At the same time, we will begin with the environmental impact study for its exploitation,” he noted.

"As we have done several preliminary studies and we have a lot of complementary documentation, we believe that we can complete the preparation of the environmental impact study for the exploitation and present it to Minem in July of next year," he added.

“If the evaluation and approval of the environmental impact study takes 18 months, we consider that in 2027 we could already be in the construction stage, which would take between 10 to 12 months. That means that at the end of 2027 or beginning of 2028 we would already be in production,” he said.

The general manager of Macusani Yellowcake pointed out that a total investment of US$ 867 million is estimated, which includes a plant to produce 25,000 tons of lithium carbonate annually in the first three years.

“In the fourth year, already producing our own profits, we plan to reach 50,000 tons of lithium carbonate. And by year number 11, we would reach 100,000 tons of battery-grade lithium carbonate per year,” he said.

Legislation

For the director of Mining Promotion of Minem, Carmelo Condori, lithium is like any metal, therefore, it is under the scope of the General Mining Law that establishes rules and regulations to exploit it. “Lithium is within the regulation established by the General Mining Law,” he said.

The general manager of Macusani Yellowcake, Ulises Solís, agreed with the Minem specialist that the General Mining Law and its entire legal system cover the exploitation of lithium.

It is worth remembering that, in July 2021, Law No. 31283 was enacted, which declares the exploration, exploitation and industrialization of lithium and its derivatives a public necessity. Likewise, it declares that its commercialization constitutes a strategic resource.

The aforementioned law provides that the Executive Branch regulates the declaration of a strategic resource for the commercialization of lithium and its derivatives, to guarantee the development of the national battery-grade industry and the procedure for recycling lithium batteries.

In August 2022, through Ministerial Resolution No. 317-2022-MINEM/DM, the so-called “Working Group to propose competition actions and measures for the Energy and Mines sector, aimed at the regulation of Law No. 31283” was formed. , which is dependent on Minem.