Ganfeng Lithium to Open New Lithium Chloride Plant in Argentina
Ganfeng Lithium’s new lithium chloride production plant in Argentina is set to officially open on February 12, marking a significant milestone in the Mariana Lithium Project. The plant, a subsidiary of China’s Ganfeng Lithium Group, will initially produce 20,000 tonnes of lithium chloride annually.
Raw materials for the plant will be sourced from the Salar del Llullaillaco, a remote salt flat located 430 kilometers from Salta in the Puna region. The brine will undergo pre-concentration through solar evaporation at the site, with further purification and crystallization at the Güemes facility. The high-purity lithium chloride produced will be shipped to China for battery manufacturing.
The project is also significant for TNR Gold Corp, a Canadian-listed company with a royalty-focused business model. TNR holds a 1.5% net smelter return (NSR) royalty on the Mariana Lithium Project. Ganfeng's subsidiary, Litio Minera Argentina (LMA), has the option to repurchase 1% of the NSR royalty, which would reduce TNR’s share to 0.45%, with 0.05% allocated to one of TNR’s shareholders.
Kirill Klip, CEO of TNR Gold, expressed optimism about the potential cash flow from the project. “We are looking forward to our first NSR royalty cash flow payments from the Mariana Lithium Project,” Klip stated, highlighting that TNR is not required to contribute any capital for the development of Mariana or its other royalty holdings.
“The essence of our business model is to have industry leaders like Ganfeng Lithium as operators on the projects that will potentially generate royalty cash flows to contribute significant value for our shareholders,” Klip added.
