While not as rich in lithium as neighboring Bolivia, the Republic of Peru has significant lithium reserves waiting to be exploited. The Peruvian government is now looking to provide permits for a Canadian company to exploit lithium in Puno, in the south of the country.
The Puno Project
In April, the Peruvian government announced that exploration licenses would be provided to the Peru-based company Macusani Yellowcake, a Plateau Energy Metals subsidiary (Plateau Energy Metals completed a merger with American Lithium in May 2021). American Lithium already operates in Peru, specifically in the Macusani Uranium Project, also located in Puno. The state newspaper El Peruano quoted Energy and Mining Minister Oscar Vera this past 10 April 2023 as saying the government will finalize the permits within the next two months. The minister noted, optimistically, that “it appears that our lithium does not have uranium, and it will be much easier for us” to exploit it.
The project is not new, as Macusani Yellowcake’s interest in Puno’s lithium dates back to around 2017, and the company carried out hydro-geological tests in Puno last year. In 2022, a Macusani Yellowcake manager explained that the processing plant will be built in 2026 and commence production in 2027. “We are losing one year due to legal permits,” said Ulises Solís, general manager of Macusani Yellowcake. According to the Peruvian media, lithium can be up to 80 meters deep in Falchani, an area located in Macusani province, Puno.
“The Falchani lithium in Macusani is found in rock, distinct from the salt flats of Bolivia, Argentina, and Chile. Therefore, the extraction cost of lithium carbonate would be around US$4,000 per ton. Prices have been increasing as the need to accelerate the search for other sources of renewable energy appeared,” said Rómulo Mucho, former president of Peru’s Institute of Mining Engineers (Instituto de Ingenieros de Minas) in a report in Peruvian daily La Republica about Peru’s lithium. American Lithium has reported that Falchani is estimated to be the 6th largest hard rock lithium deposit globally.
