Galan Lithium Limited (ASX:GLN) Receives Full HMW Phase 2 Mining Permit
Mining Permit Granted
Galan Lithium Limited (ASX:GLN) has received the full mining permit for its Hombre Muerto West (HMW) Phase 2 project, allowing for lithium production of up to 21,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). This permit secures the pathway for the company’s continued development at HMW, enhancing its operational capacity significantly.
Operational and Financial Impacts
The Phase 2 permit encompasses all necessary construction activities, including infrastructure for ponds, processing plants, and laboratories. Galan states that HMW’s Phase 2 production will be cash flow positive at current lithium carbonate prices. Notably, independent analyses indicate that HMW ranks in the top tier of the lithium industry’s all-in sustaining costs (AISC) curve.
Managing Director, Juan Pablo Vargas de la Vega, expressed his satisfaction regarding the permit’s approval, stating, “We are delighted with the grant of the Phase 2 mining permit which continues to solidify our strong relationship with the local Catamarcan authorities.” He highlighted the importance of this development in increasing production capacity and meeting the growing demand for lithium chloride.
Future Outlook and Strategic Initiatives
The approval also supports Galan’s application for Argentina’s new investment incentive regime, which offers benefits such as reduced taxation rates and fiscal stability for up to 30 years. The company’s immediate focus is on securing project finance and off-take arrangements for Phase 1 production, scheduled to commence in the second half of 2025.
Galan’s Chairman, Richard Homsany, commended the team’s efforts and the importance of maintaining strong relationships with local authorities and communities. He stated, “Through action we have demonstrated the benefits of our HMW operations: economically though the generation of employment, procurement and trade opportunities and socially through education, community programs and training opportunities.”
The timeline for HMW’s phased development includes goals of 40ktpa and 60ktpa in subsequent production phases, leveraging lithium brine resources from both HMW and Galan’s other project in Argentina, Candelas.
Motley Fool contributor Kiarra Jackson has no position in any of the stocks mentioned. The Motley Fool Australia's parent company Motley Fool Holdings Inc. has no position in any of the stocks mentioned. The Motley Fool Australia has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. This article contains general investment advice only (under AFSL 400691). Authorised by Scott Phillips.
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