Galan Lithium has taken a major step towards the construction of Argentina’s next major lithium brine operations, receiving development permits for the first stage of the Hombre Muerto West project.

The first development permits were granted by the Catamarca Mines Department Minister on Friday, paving the way for the start of pre-construction activities.

That will include the commissioning of the current camp in preparation to be increased to a 250 person camp, removal of top soil and preliminary testing activities to secure the ground quality at HMW.

Those activities will enable construction of the ponds for the first stage of the project. That is expected to begin in the September quarter after the delivery of full construction permits.

The initial Phase-1 of the HMW project will see Galan (ASX:GLN) produce a lithium chloride concentrate, with a DFS just around the corner to outline the economic case for the staged start-up.

A larger Phase-2 DFS is expected in August or September this year, which will lay out the runway for Galan to ramp up output to 20,000t of lithium carbonate equivalent a year.

Those sorts of numbers would put Galan in a class alongside peers like Livent’s El Fenix brine and Allkem’s Olaroz project in Argentina’s Lithium Triangle.


Galan Lithium ASX GLN
A camp expansion at HMW is under way. Pic: Galan


“Galan would firstly like to acknowledge and sincerely thank the Government of the Catamarca Province in Argentina for their continued support in walking with us to bring about this first major approval in the development of the initial production phase for the HMW Project,” GLN managing director JP Vargas dela Vega said.

“They have been both professional and committed through the whole approval process. This next development phase of the HMW Project will also continue Galan’s proud engagement of local contractors and communities within the Catamarca province.

“These are exciting times for Galan and its shareholders as we strive to get the HMW Project into its initial production phase.”

Comprised of seven concessions on the west of coast of the Hombre Muerto salar neighbouring Livent – soon to be married with Allkem in a $16 billion merger – Galan’s HMW project boasts an impressive mineral resource of 6.6Mt LCE at a grade of 880mg/L Li.

At a world class size and one of the highest grade resources in the Lithium Triangle, Galan is planning a four stage ramp up that along with the nearby Candelas resource could see it eventually hit a production runrate of 60,000tpa LCE.


Galan Lithium ASX GLN
Top soil is being removed ahead of the construction of brine ponds. Pic: Galan



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.