IFC supports development of Sal de Vida in Argentina
Published by Jessica Casey,
Editor
Global Mining Review,
The International Finance Corporation (IFC), a member of the World Bank, has announced a loan of up to US$180 million to Allkem, a world-class lithium chemical producer, to support the development of Sal de Vida, a greenfield lithium operation in the province of Catamarca, Argentina. The financing is IFC's first investment in lithium mining and includes up to US$100 million for IFC's own account and up to US$30 million in mobilisation. An additional US$50 million parallel loan arranged by IFC is expected to close subsequently to complete the total financing package.
Lithium is a key input for batteries that power clean energy technologies and plays a critical role in the transition to a low-carbon future. The International Energy Agency estimates that the lithium supply needs to increase sevenfold by 2030 to reach its net-zero emissions scenario by 2050.
The project is expected to produce 15 000 tpy of lithium carbonate equivalent (LCE) in its first stage. The investment will support Allkem's construction and operation of a battery-grade brine lithium plant at Sal de Vida which is located at 4100 m above sea level in the Salar del Hombre Muerto, Catamarca.
“We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities,” said Allkem's Managing Director and CEO, Martin Perez de Solay.”We agreed to set up the highest sustainability standards for Sal de Vida, so that it will contribute to the economy of Catamarca via local employment, the development of local supply chains, and community development programmes.”
This is the first time a greenfield mining project's financing has been structured as a green and sustainability-linked loan. The project's ambitious sustainability targets include increasing the percentage of women in Sal de Vida's workforce from 10% in 2022 to 26% by 2030, and expanding the use of renewable energy in the production cycle to 50% by 2030.
“Our investment in Allkem is part of IFC's strategy to develop global supply chains that accelerate the transition to a low-carbon future while creating jobs,” added Makhtar Diop, IFC's Managing Director. “It will strengthen Argentina's position as one of the world's leading lithium producers and help set high sustainability standards for the lithium mining industry.”
Sal de Vida is located within the Lithium Triangle, a region in the Andes straddling the borders of Chile, Bolivia, and Argentina, that hosts roughly 60% of the world's identified lithium metal resources in near-surface brines. Argentina alone ac-counts for 35% of the global lithium resources and ranks third globally in proven reserves.
Read the article online at: https://www.globalminingreview.com/finance-business/26072023/ifc-supports-development-of-sal-de-vida-in-argentina/
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