American Lithium says Peru lithium project could be fast-tracked

American Lithium

28/11/2023 16:02

Nov 28 (Reuters) - Canada's American Lithium Corp  LI.V 
on Tuesday said it submitted an early environmental permit study
for its Falchani lithium project in southern Peru and expects
approval in coming months, which could help fast-track
construction permits.
    American Lithium said its semi-detailed environmental impact
assessment already allows for the drilling of up to 420
platforms across the project.
    CEO Simon Clarke said the process had started in July last
year under the previous government in what he described as "a
difficult time for permitting in Peru."
    "The support of the new authorities in Peru in helping us
fast-track this process with the common goal of seeing lithium
production in the country as quickly as reasonably possible,"
Clarke added.
    The ouster of former Peruvian President Pedro Castillo in
December 2022 triggered months of deadly social protests,
notably across the country's southern mining region, causing
many miners there to halt operations.
    Last month, American Lithium hiked its estimates for the
project by 476% from 2019, saying it could hold 5.53 million
metric tons of lithium carbonate equivalent, which would make it
one of the world's largest hard-rock lithium projects. 
    Earlier this year, Clarke said construction could begin next
year or in 2025.
    Lithium is a critical metal used in rechargeable batteries
for electric vehicles and other electronics and demand has
boomed in recent years.
    With new regulations calling for more production of electric
vehicles, investors have increasingly turned to South America,
which is estimated to hold over half the world's lithium.
    Analysts from the National Bank of Canada's financial
markets unit said Falchani's development, exploration and
possible future expansions remain subject to many risks, such as
feasibility studies and the financing to complete construction.
    If this step is approved by Peru's mining ministry, the
analysts said, American Lithium will then have to complete a
pre-feasibility study and an updated technical report.

 (Reporting by Sarah Morland
Editing by Bill Berkrot)
 ((sarah.morland@thomsonreuters.com;))