• Galan Lithium progressing construction of first evaporation pond at its Hombre Muerto West project
  • Pond liners to be installed soon with evaporation process expected to start in summer
  • Preparation works for Ponds 2 and 3 also underway
  • Phase 1 lithium chloride production on track to start in 1H 2025


Special Report: Galan Lithium remains on track to start Phase 1 lithium chloride production from its Hombre Muerto West project in Argentina in 1H 2025, with construction of the first evaporation pond progressing to schedule.

HMW’s Phase 1 operation is expected to produce a premium 6% lithium chloride concentrate (comparable to 13% Li2O or 32% lithium carbonate equivalent) at a rate of about 5,400tpa of lithium carbonate equivalent from the first half of 2025 for the first five years of commercial production.

According to Galan Lithium’s (ASX:GLN) definitive feasibility study, Phase 1 will deliver post-tax net present value 8% (NPV8) and internal rate of return (IRR) – both measures of a project’s profitability – of US$460m and 36%, respectively, as well as free cash flow of US$54m per year.

Capex is estimated at just US$104m with payback in two years while operational expenses were estimated at US$3,963/t of recoverable LCE.

This proved to be attractive enough for Glencore to sign a binding agreement to purchase up to 100% of the proposed lithium chloride concentrate production and secure the first right to negotiate in respect of marketing and/or financing with regards to future expansion under the proposed Phase 2 operations.

GLN has also received direct enquiries from reputable industry participants including car makers, chemical refiners, miners, and traders regarding participation in Phase 2.


“Significant progress” made on site

Construction of Pond 1 is progressing to schedule with the advance rate now at 65%.

The company notes that liners for the pond are on site and installation will begin late this month with filling expected in Q1 2024 and the evaporation process commencing in summer.

Galan Lithium (ASX:GLN)
Pond 1 construction progress and preparation work for Ponds 2 and 3. Pic: Supplied (GLN).

Preparation works for Ponds 2 and 3 are also underway including the removal of topsoil.

GLN adds that new camp and infrastructure is progressing well with all final modules materially in place.

“I arrived on site this week and am very pleased with the significant progress being made on site and most impressed with the dedicated personnel we have in place,” managing director Juan Pablo Vargas de la Vega said.

“Galan has assembled a cohesive team of highly competent people, with the necessary specialist experience and knowledge to build the ponds and infrastructure required to successfully deliver the first production phase of the HMW project.

“Pond 1 construction works have been progressing well and in accordance with expectations. We are sharply focused on our objective to commence brine evaporation this summer.

“We also remain enthusiastic and confident about development of Phase 1 HMW and achieving first production H1, 2025.”



This article was developed in collaboration with Galan Lithium, a Stockhead advertiser at the time of publishing.


This article does not constitute financial product advice. You should consider obtaining independent advice before making any financial decisions.