Through Exar, along with state-run Jujuy Energía y Minería (JEMSE), Canadian group Lithium Americas has committed itself to invest almost $ 3,000 million to produce lithium carbonate for batteries and potassium chloride in Jujuy.
The project, called Caucharí-Olaroz, foresees the development of two production stages: the first one will be finished by 2015, while the second one will start in 2018. The initial production will amount to 20,000 tons of lithium carbonate and 40,000 tons of potassium chloride per year.
The mining company executives so informed President Cristina Fernández in a recent meeting in Casa Rosada, in which also took part Minister of Industry Débora Giorgi, Minister of Federal Planning Julio De Vido, Secretary of Mining Jorge Mayoral, and Jujuy governor Eduardo Fellner.
According to estimations by Waldo Pérez and Mario De Pablos, Exar’s CEO and Vicepresident, respectively, the project is intended to satisfy a 9.2% of worldwide lithium demand in 2016, and cover up to 14% in 2018. Likewise, the company plans to devote to Jujuy up to 5% of its annual production of lithium and other minerals extracted from the province, with the purpose of promoting new industry settlements there.
The millionaire investment, which will materialize between this year and 2018, will take place in the Department of Susques. During the construction stage, 1,000 new jobs shall be created, and when it starts operating, 900 direct and indirect employment positions.
Along with Salta and Catamarca, Jujuy would have most of the lithium deposits nationwide. Argentina is one of the three most important world reserves (the other two are Bolivia and Chile).
Since June 2009, Exar mining company is controlled by Lithium Americas Corp., with 89% of its shares. The remaining 11% is owned by Ontario Inc., also from Canada.