Allkem boosts Sal de Vida Project with additional $50m financing from IDB Invest
Allkem Limited (ASX|TSX: AKE), a prominent player in the mining industry, has announced a significant enhancement to its financing for the Sal de Vida Project located in Catamarca Province, Argentina. The existing International Financing Corporation (IFC) project financing has been supplemented with an additional US$50 million from IDB Invest, marking a crucial step in the project’s development.
Financial Milestones in Sustainable Mining
In July 2023, Allkem had already secured up to US$130 million from IFC for the development of Stage 1 of the Sal de Vida (SdV) project. The latest agreement with IDB Invest brings the total project financing to an impressive US$180 million. This funding is structured as green and sustainability-linked loans, affirming Allkem’s commitment to environmentally responsible mining practices.
Setting High ESG Standards
The managing director and CEO of Allkem, Martin Perez de Solay, expressed his satisfaction with the increased size of the sustainability-linked green loans for Sal de Vida. These loans combine ambitious environmental and social targets, supporting the responsible and sustainable development of lithium for a greener future and regional economic growth in Catamarca. Allkem’s partnership with IFC and IDB Invest ensures long-term, safe, and sustainable operations, focusing on local employment, developing local supply chains, and community development programs.
Allkem Limited Augments Sal de Vida Project with $50M from IDB Invest
About Sal de Vida Project
Sal de Vida is a tier 1 brine project situated in the lithium-rich area of the Salar del Hombre Muerto, approximately 1,400km northwest of Buenos Aires. The project, with its superior brine chemistry, is positioned to upgrade readily to battery-grade lithium carbonate.
The project boasts a Resource estimate of 7.2 million tonnes of lithium carbonate equivalent (LCE), characterized by high grade and low levels of impurities. With a Reserve estimate of 2.5 million tonnes of LCE, the project is expected to have a life span of 40 years.
Innovative Production and Environmental Considerations
Sal de Vida is designed to produce predominantly battery-grade lithium carbonate, utilizing a simplistic flowsheet that leverages mature technology with low energy and water consumption. The initial production target of 15,000 tonnes per annum in Stage 1 can be expanded to 45,000 tonnes per annum in Stage 2.
The project’s location in the “lithium triangle” of Chile, Bolivia, and Argentina, an area with a significant portion of the world’s estimated lithium resources, further underscores its strategic importance in the global lithium market.