JOHANNESBURG (miningweekly.com) – Specialty chemicals company Enirgi Group Corporation and lithium exploration company Lithium S Corporation have entered into a Memorandum of Understanding (MoU) that details a strategic collaboration to explore and develop lithium projects in northern Argentina.
Following a successful capital raise by Lithium S, Enirgi Group will take an equity stake in the exploration company, and Lithium S will enter into a management services agreement with Enirgi Group for the provision of certain management and operational support.
Lithium S also signed a technical support agreement to support the exploration of the properties and to study the feasibility of future lithium operations on the properties using Enirgi Group's proprietary direct extraction process (DEP) Technology.
"The proposed collaboration with Lithium S will accelerate Enirgi Group's previously announced global lithium strategy," said Enirgi CEO Wayne Richardson, further highlighting the positive results of the group’s definitive feasibility study for a planned 50 000 t/y lithium carbonate processing plant at its Salar del Rincón project in the province of Salta, Argentina.
Further, the company is pursuing its longer-term plan to increase its production capacity by scaling the Rincón project into a larger regional processing facility (RPF) that will use Enirgi Group's DEP technology for the development of the Salar del Rincón and other lithium brine salt lakes.
Enirgi Group and Lithium S's immediate strategic focus will be on the rapid exploration and development of its salt lakes that have the potential to economically supply lithium brine to the expanded RPF.
Further, the chemicals company expects to undertake programmes to analyse the feasibility of applying its DEP technology for the purpose of developing the properties, which may include concentrating the brines on the various exploration properties, which would servev as additional feed to the RPF.
Upon recovery of the lithium, the brine will be recycled back into the salt lakes, which reduces the impact on the environment.
Enirgi’s DEP technology has demonstrated recoveries in the range of between 75% and 85%, with brine sourced from the Rincón project.
Enirgi Group's chemical division, as well as its innovation division are working on strategies to leverage the application of the DEP technology for other lithium brine resources in the region.
This may allow brines that were once deemed uneconomical or difficult to process
to become economically viable with the application of the DEP technology.