Argentina’s mineral resources attract US$4.5 billion in investment in two days

RIO DE JANEIRO, BRAZIL – Two major Asian mining companies announced this week that they will invest millions in Argentine lithium.

China’s Zijin will build a US$380 million lithium carbonate plant in Catamarca. The day before, South Korean company Posco (Pohang Iron and Steel Company) announced in a meeting with Alberto Fernandez that it will increase investment in its Salta project in the Salar del Hombre Muerto to produce lithium hydroxide to US$4 billion.

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Lithium is the most sought-after mineral today not only because of its importance to technology and electromobility, but also because northern Argentina is an important location as part of the lithium triangle with Chile and Bolivia. The world’s largest deposit of the metal is concentrated here, and despite extensive investment, there are few lithium production projects in the country.

On the other hand, other metals continue to receive the largest investment announcements, especially for project expansion. This year, there will be nearly 90 mining projects totaling US$10 billion.

In the case of the new announcement by Chinese mining company Zijin Mining Group, the Minister of Productive Development, Matías Kulfas, and the Governor of Catamarca, Raúl Jalil, met this week with representatives of the company, which has already begun construction of the lithium carbonate plant at the Tres Quebradas deposit, 170 km east of Fiambalá.

The investment comes from the company’s Argentine subsidiary, Liex, which promises that the project will create more than 1,000 direct and indirect jobs in the region.

Zijin is China’s leading gold producer with 40 projects and more than 20,000 employees worldwide. The company is looking at further investments for the production of lithium in Argentina, as well as gold and copper.

The meeting, held at Casa Rosada, was also attended by Secretary of State for Mines Fernanda Ávila, Catamarca’s Minister of Mines Marcelo Murúa, the National Senator for Catamarca Guillermo Andrada, Zijin’s Vice President Shaoyang Shen, Zijin’s Chief Financial Officer Leslie Shen, Liex’s President and CEO Tomás de Pablos Souza, and Zijin’s General Manager for Argentina Huang Huaiguo.

Secretary Fernanda Ávila said, “The construction of the Tres Quebradas lithium carbonate plant is a great opportunity for jobs and local development in the province of Catamarca and northwestern Argentina. Once again, this is an announcement that positions Catamarca as one of the most important global destinations and reaffirms its central role in the energy transition.”

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