Name of the Project
Kachi lithium brine project.

Location
Catamarca, Argentina.

Project Owner/s
Lithium developer Lake Resources.

Project Description
A prefeasibility study (PFS) has demonstrated Kachi’s potential to deliver high-purity product – based on a sustainable and scalable process – required by battery makers.

The PFS envisages a long-life, low-cost operation with a production target of 25 500 t/y of battery-grade lithium carbonate using direct lithium extraction technology based on ion exchange, which, in turn, is based on an indi­cated resource of one-million tonnes lithium car­bonate equivalent.

The process involves the treatment of about 23-million cubic metres a year of brine at 250 g/ℓ lithium, with an overall plant recovery of 83.2%. The eluate from the process is further concentrated and purified, and then fed into a conventional lithium carbonate plant.

No solvent extraction plant is required to remove boron.

Potential Job Creation
Not stated.

Net Present Value/Internal Rate of Return
The project has a pretax net present value, at an 8% discount rate, of $1.05-billion and an internal rate of return of 25%, with a payback from first product delivery of five years.

Capital Expenditure
The project entails an investment of $544-million.

Planned Start/End Date
Not stated.

Latest Developments
Lake Resources has appointed project finance institutions Citi and JP Morgan as joint coordinators for its Kachi lithium project.

The coordinators will work together on a debt financing package to fund the development of the project.

The contemplated debt financing will be based on the indicative support by UK Export Finance (UKEF) to cover 70% of the total Kachi project funding requirement, subject to UKEF approval and standard project finance conditions.

It is also planned to have Export Development of Canada participate alongside UKEF.

The definitive feasibility study (DFS) under way will consider a production case of 50 000 t/y, given the increased demand from potential offtakers. The DFS is due for completion in mid-2022.

The amount of the proposed debt financing will be governed, among other aspects, by the outcomes of the DFS and the export credit agencies' assessments of all studies. 

Key Contracts, Suppliers and Consultants
Lilac Solutions (lithium extraction testwork); Hatch (engineering and design services); and Citi and JP Morgan (finance coordinators of the Kachi project).

Contact Details for Project Information
Lake Wells, tel +61 2 9299 9690 or email hello@lakeresources.com.au.