Extremadura takes a key step to exploit one of the largest lithium mines: what progress has been made and what to expect now

Cáceres is a little closer to standing out on the international lithium map. At least on paper. The Junta de Extremadura has just taken a crucial step in the long and complex administrative process that, if concluded in a favorable manner for the interests of the company interested in its exploitation, will allow the exploitation of the Valdeflórez mining deposit. The news is relevant for the community, but also for the automotive industry: the Cacereña mine, located in the Sierra de la Moscahouses a major Europe lithium deposit.

Hence, each new step in the offices arouses interest.

What’s new? That the Ministry of Ecological Transition has granted the exploration permit to Extremadura New Energies (ENE), a relevant step for several reasons. First, because—as has been in charge of emphasizing the company itself—represents “a new advance in administrative processing”.

Second, because Extremadura New Energies is already planning to go one step further and request a new procedure, the “pass to concession”, which will activate the process for environmental impact studies. The authorization of the Board does not really come as a surprise to those responsible for the company, who in mid-March they already showed their confidence that the regional OK would arrive before April.

And what has the Board said? ENE’s announcement comes after the regional government will reveal that had granted the exploration permit —known as Extremadura SE— for a period of one year, extendable for the municipalities of Sierra de Fuentes, torreorgaz and Cáceres, where Valdeflórez is located.

The authorization had been requested in 2019 by Castilla Mining SLU, a subsidiary —according to collect Market Screener and they echo media like elDiario.es either Today— from Infinity Lithium, an Australian corporation that serves as matrix also to ENE.

What does the permit imply? The 2019 request points to several resources —including boron, zinc, tin, tungsten, gold, lead and lithium and various rare earths— in an area of ​​315 mining squares that are spread over the three Extremaduran towns. Now, with the exploration permit on the table, the company will be able to carry out studies and reconnaissance of the deposits.

“It will make it possible to expand the structural geological knowledge of the affected area at the surface level through the manual collection of 100 small-volume samples and other petrographic and mineralogical tests of 20 samples,” points out the Board.

What is the Cáceres site like? ENE defends that San José de Valdeflórez is the second largest lithium deposit of its kind, known as “hard rock” on the continent. According to the bills that the company has already done, during the 26 years that it expects to operate the mine will achieve a nominal production of around 19,470 tons of lithium hydroxide (LiOH) per year and a total amount that will be around 467,000 tons of LiOH in battery grade.

Last year forecasts of the company were to advance in the processing throughout 2023 and start construction as early as 2024 to start extracting lithium hydroxide at “the end of 2025 or the beginning of 2026”. to their 26 years for exploitation, two for preparation and three for rehabilitation and closure are added.

? The Board grants the Exploration Permit to Extremadura New Energies ?

? ENE will present the request for the Concession Pass, which will begin the formal procedure to start the environmental impact studies

rmation ⤵️⤵️https://t.co/g0HkfqX8Ks

— Extremadura New Energies (@EXNewEnergies) March 28, 2023

Is everyone in favor? No. The mining project also has detractors. Its own promoters have chosen to reconsider the original design, going from a first proposal for open-pit exploitation to another underground one. The new plan is public and is posted on its website, with an extensive dossier of 152 pages. In 2020 the neighbors already showed your worry due to the impact of exploitation on the environment and the mayor of Cáceresbetween other national leadershave also shown their rejection: “There are more risks than benefits”.

Lithium is a key material for an automotive sector embarked on the commitment to electric mobility. And although the price of lithium carbonate for batteries in China, a benchmark for the industry, has experienced a fall So far this year, its supply and the fluctuations in cost have been one of the biggest headaches for car manufacturers. Good proof is that there are companies in the sector that are already considering mining it directly.

Cover image: Extremadura New Energies

In Xataka: There is little lithium because until now we had not searched enough. Iran is the best example of this.