[SMM News] Patagonia Lithium completes 72-hour pump test at Cilon

On October 2(nd), Sigma Lithium has suspended all mining and industrial activities at its Grota do Cirilo operation in Brazil, its sole producing asset, pending a federal appeals court ruling on a preliminary injunction over its environmental licences. Brazil's national mining agency (ANM) had ordered mining halted on the eastern slope of the north pit. Concentrate output from the site is halted during the suspension, and sales of lithium fines continue. Sigma pushed back its 12-month production guidance of 240,000 mt by three months and maintains its FY2027 target of 330,000 mt of concentrate.

Lithium Argentina confirmed a Stage 2 expansion at the Cauchari-Olaroz salt lake project in Argentina, adding 45,000 mt/y of lithium carbonate capacity and lifting total capacity to 85,000 mt/y. Of this, an initial 10,000 mt/y module using adsorption direct lithium extraction (DLE) is expected online in 2028. This estimates after-tax NPV at $3.1 billion and IRR at 28.5% at a lithium carbonate price of $18,000/mt, with operating costs of $5,006/mt. Total investment for Stage 2 is $1 billion. The project remains subject to regulatory approvals, and detailed engineering for the initial module is due later this year. The additional supply is scheduled from 2028 onward.

On October 2(nd), Eramet is considering a US$350 million brownfield expansion of its Centenario-Ratones lithium project in Argentina, which would add 11,000 mt/y of lithium carbonate equivalent (LCE) capacity to the existing nameplate capacity of 24,000 mt/y. The investment is subject to a final investment decision (FID), which Eramet says could be made by end 2027, and detailed engineering studies are underway. The project reached 90% of nameplate capacity in June, expects it to reach close to 100% by the end of this year. Eramet plans to apply for inclusion under Argentina's Large Investment Incentive Regime (RIGI).