Vinicius Alvarenga, CEO, Companhia Brasileira de Lítio
How has the expansion of the chemical plant in 2022 affected the overall capacity of CBL?
In the past two years, CBL has seen significant growth in our operational capacities. Previously, our focus was predominantly on the domestic market, leading to underutilization of potential. In 2021, we decided to expand our two operational units located in Vale do Jequitinhonha. Our mining unit in Araçuaí Tinga and chemical plant unit in Divisa Alegre were both subject to this expansion. The mining unit’s capacity increased from 11,000 t/y to a recent achievement of 45,000 t/y. Likewise, the chemical plant expanded from 14 t/y of Lithium Carbonate Equivalent (LCE) per year to 1,500 t/y. As a next step, we are conducting feasibility studies for another expansion program which, if feasible, will begin next year.
Can you explain the hard-drove method extraction from pegmatites and the chemical process to produce lithium?
Our unique approach involves underground mining of lithium pegmatite. Contrary to most other operations worldwide, this method reduces dilution and contaminants and generates almost no waste, providing significant environmental and cost advantages. In terms of processing, we use Dense Media Separation (DMS) to concentrate the pegmatite. The lithium content increases from approximately 1.3-1.5% to 5.5% through this process. Pegmatites from hard rock have less magnesium and boron content than those from brines, resulting in carbonate and hydroxide with lesser contaminants.
How is Brazil positioned to develop a battery supply chain?
Brazil is quite far from developing a full battery supply chain, despite having natural resources for battery making and the necessary technology. The main issue is the lack of demand due to Brazil's successful ethanol program which has been reducing the country's dependence on fossil fuels. Consequently, there is not much pressure in the market to incentivize electric vehicles. I believe we should establish some type of incentive program for electric vehicle purchases to avoid isolating our car industry in the future.
Fabiano Costa, CEO, AMG Brazil
What are AMG’s planned development projects in Brazil?
We are currently expanding production from 90,000 t/y to 130,000 t/y with an investment of US$50 million. This expansion also allows us to increase our tantalum production. Tantalum is an essential component in keeping us cost competitive. Even if the lithium price drops, AMG will be survive because of the diversity of our production. The expansion from spodumene will be finalized by the end of the year, and then we will have the operational ramp-up phase. I expect to operate in this new nominal capacity around the first quarter of next year.
Our significant step forward for AMG Brazil is to convert from concentrate to carbonate within Brazil. The investment for this project will be around US$250 million, with a financial line from KfW, the German Development Bank. Our refinery will go from technical grade carbonate to battery grade hydroxide, which will be completed by the end of 2022. That is the vision of AMG Lithium.
What are the positives of operating in Brazil?
Unfortunately, Brazil is a country that has been labeled as corrupt, and we have been trying very hard to clean this image. Nowadays, the country is very secure from a legal perspective. For a big company like AMG, there is no risk in operating in Brazil. And for mining, in particular, the industry benefits because the country is mining-oriented.
AMG recently announced that we came to an agreement with a partner in Portugal. I have seen that building a mine in the heart of Europe faces significantly more hostility than constructing and opening a mine in Brazil. In Brazil, we have community support because communities usually see a mine as a potential for development. Additionally, from a legislation perspective, we have excellent legislation for mining, from environmental law to labor protection. I would dare to say that there is no better legislation in the world for mining.