In 2019, official reports identified lithium projects in 23 northern salaries of the country. These projects are concentrated in the provinces of Salta, Catamarca and Jujuy. In 2019, two projects were identified in production stage (the Phoenix project in the Salar of the Dead Man, Catamarca and the OroRoz project in Jujuy), as well as a project under construction (the Project Cauchari Olaroz, Jujuy) and around 16 projects In feasibility and advanced exploration stage, among which the Cauchari project was included, in Jujuy [1]. |
Name of conflict: | Lithium exploitation in the Salar de Oroz-Cauchari, Argentina |
Country: | Argentina |
State or province: | Jujuy. |
Location of conflict: | Susques |
Accuracy of location | MEDIUM (Regional level) |
Type of conflict. 1st level: | Mineral Ores and Building Materials Extraction |
Type of conflict. 2nd level: | Water access rights and entitlements Mineral ore exploration Mineral processing |
Specific commodities: | Lithium Water Potassium, borono. |
Project details | There are 3 lithium projects between the salaries of Ororoz and Cauchari in different phases of advances (operation, construction and advanced economic evaluation): 1. Salar Ároz: Orocobre S.A, Toyota Tsusho, Jemse. In 2010, the Australian mining company Orocobre, Toyota Tsusho (Japan) and Jemse (Province of Jujuy) began a joint venture for the Salar de Ororoz project, and thus began the first lithium extraction project in Argentina since 1997. The procedure of The EIA began in 2010 when the company presented the first environmental impact report, but due to the additional requirements of UGAMP and amendments to the licensing procedure, the project was just approved in 2012. In 2015, the plant began to work and in 2016 the production was 11,485 tons of LCE (prices began below USD 6000 / tonne at the beginning of the financial year and at the end of 2016 there were more than duplicated this amount). In 2018, Orocobre announced the progress of stage 2 of expansion of the olroz lithium plant, in order to increase the capacity of lithium carbonate production at 25,000 tons per year (reaching a total of 42,500 tons per year), as well as From 17,500 tonnes per year announced previously (the average price in the quarter from October to December 2018 was US $ 10,587 per ton). (Orocobre, 2018a) [15]. This new phase of development implies an investment of US $ 291 million, of which an agreement was recently closed with the Mizuho Bank Ltd to ensure US $ 180 million. With this extension it will be the lithium mine with greater capacity in Argentina [16]. 2. Salar Cauchari-Olroz (Lithium American-GFL). The plant located in the Salar de Ororoz-Cauchari, located 300 kilometers west of San Salvador de Jujuy, will have a total of 20 pools totaling 1,200 hectares, according to Minera Exar. The mine seeks to extract lithium in brine in a conventional manner. It plans to pierce a total of 40 brine production wells in the mine [17]. According to the company's studies. The project has proven reserves of 276.2 thousand tons of equivalent lithium carbonate (LCE) and probable of 1,675 million tons of LCE. It is estimated that the Cauchari-Ororoz mine contains 1,100 million cubic meters of brine reserves with a Law of 607 mg / L lithium. It is estimated that the project contains 682,920t lithium metal and 3.6 million tons of equivalent lithium carbonate (LCE) in measured resources. To produce 20,000 t of lithium carbonate, the Canadian Lithium Americas proposes extract 400 l / s brine and 60-80 l / s freshwater (Lithiumamericas 2011) [18]. In 2016, the Canadian company Lithium Americas Corp. (LAC) and the Chilean Chemical Society and Minera company of Chile S.A. (SQM) agreed to participate in a joint venture of 50/50 for the ExAr Minera Project. JEMSE also joined the project with a property share of 8.5%. SQM has been involved in scandals regarding investigations in Chile on tax evasion, bribes and financing of political parties during 2016-2017. In the media, this whole situation was known as the SQM34 scandal. According to the technical report or 43-101 of LAC35, the last EIA for exploration was presented to the provincial government in February 2017 and according to interviews conducted by the Farn [19], it was approved in August 2017. The project initially requested mining concessions for exploration at 60,712 ha, of which 28,717 ha have been granted to date. The concessions are adjacent and cover most of the salar Cauchari and a portion of Salar Olaroz. Companies conducted a feasibility study in September 2019 to increase the initial production capacity of 25,000 TPA to 40,000 tPA lithium carbonate [20]. In May 2021, the Minera Lithium Americas, together with its partner Ganfeng, announced that they approved the phase 2 expansion of its lithium-oroz lithium project to increase the project capacity of 40 to 60 thousand tons per year. It is expected that this phase of the Caucharí-OroLoz lithium project begins its execution in the year 2025. Through a press release, the President of Lithium Americas, George Ireland, expressed his enthusiasm regarding the project. "Caucharí-Olaroz is on the way to becoming the new greatest lithium brine operation of the last 20 years," he said [21]. GANMEG progressive investment in the project- in January 2017: Ganfeng acquires a 19.9% stake in Lithium Americas as part of a strategic investment in the Caucharí-Ororoz lithium project in Argentina. The following years was expanding its percentage in the project by increasing in February 2020 its property to 51% through the subscription of new exar mining actions in exchange for a cash payment of £ 12.4 million (US $ 16 million). The remaining participation of 49% in the project was then left in the hands of Lithium Americas [17] [20] [22]. 3. Cauchari: Advantage Lithium Corp. and Orocobre S.A The Cauchari, Lithium Project (Lithium Carbonate, Li2CO3), Potassium (Potassium Chloride, KCL) and Boro is in Advanced Economic Evaluation. According to Argentina's Ministry Secretariat, it has a projected capacity of 20,000 tons per year of LCE (quality batteries) [1]. |
Project area: | 1,200. |
Level of Investment for the conflictive project | 641,000,000 |
Type of population | Rural |
Affected Population: | 3,800. |
Company names or state enterprises: | Toyota Tsusho Corporation (Toyota) from Japan Minera Exar Ganfeng Lithium Co. (GFL) from China - Propietaria del 37,5 % de Minera Exar Mitsubishi Corp. from Japan - accionista Sales de Jujuy S.A. from Argentina - Compañía operadora local Orocobre from Australia Jujuy Energía y Minería Sociedad del Estado Company (JEMSE) from Argentina Lithium Americas from Canada - Propietaria del 62,5% de Exar SQM from Chile - Tuvo parte de Exar y la vendió a Ganfeng |
Relevant government actors: | Government of the Province of Jujuy. Jujuy Energy and Mining State Society (JEMSE), mining company of the Provincial Government of Jujuy. |
Environmental justice organizations (and other supporters) and their websites, if available: | Collective Apacheta (Susques), Farn (Environment Foundation and Natural Resources) Ocmal |
Intensity | LOW (some local organising) |
Reaction stage | In REACTION to the implementation (during construction or operation) |
Groups mobilizing: | Indigenous groups or traditional communities Local ejos Neighbours/citizens/communities Social movements Local scientists/professionals |
Forms of mobilization: | Development of a network/collective action Lawsuits, court cases, judicial activism Media based activism/alternative media Objections to the EIA Public campaigns Arguments for the rights of mother nature |
Environmental Impacts | Visible: Groundwater pollution or depletion, Large-scale disturbance of hydro and geological systems, Desertification/Drought Potential: Biodiversity loss (wildlife, agro-diversity), Food insecurity (crop damage), Loss of landscape/aesthetic degradation, Soil contamination, Surface water pollution / Decreasing water (physico-chemical, biological) quality, Reduced ecological / hydrological connectivity |
Socio-economical Impacts | Visible: Increase in Corruption/Co-optation of different actors Potential: Loss of livelihood, Loss of traditional knowledge/practices/cultures, Land dispossession, Loss of landscape/sense of place |
Other socio-economic impacts | Division of indigenous communities (in favor and against the project) |
Project Status | In operation |
Conflict outcome / response: | Corruption Court decision (undecided) Strengthening of participation |
Do you consider this an environmental justice success? Was environmental justice served?: | No |
Briefly explain: | Indigenous communities of resorts are divided in favor and against lithium projects. A collective of resistance has been formed but there are also members of the communities that work for companies. Lithium projects advance and there are mining and technology companies interested in exploiting lithium in these salaries. |
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Related media links to videos, campaigns, social network |
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Last update | 23/11/2021 |
Conflict ID: | 3963 |
Images |
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Inversores de salar de Olaroz
Fuente: https://www.orocobre.com/operations/salar-de-olaroz/
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Imagen de proyecto de litio en salar de Olaroz
Fuente: https://www.orocobre.com/operations/salar-de-olaroz/
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