Neo Lithium FS estimates NPV at US $ 1.13 billion
Neo Lithium’s feasibility study for the Tres Quebradas (Q3) lithium brine project in Argentina has an estimated net present value of US $ 1.13 billion at a discount rate of 8%.
The internal rate of return is 39.5%, with a payback period of 2 years and 3 months from the start of production. Neo Lithium estimates the life of the mine at 50 years, with an annual production of 20,000 tonnes of lithium carbonate equivalent for the first 20 years of the mine, using 31% of the resource.
Capital expenditures amount to US $ 370.5 million, with deferred and sustaining capital costs of US $ 143.5 million. Closure costs are expected to be US $ 12.8 million over a 50-year period.
During the first 14 years of mine life, four new wells and seven existing wells will each produce between 12.5 liters / second and 42.2 L / s. Starting in Year 15, Neo Lithium will add two new wells and one existing well to the process, which will produce between 13 L / s and 84.5 L / s.
The brine will be sent to a conventional evaporation pond, followed by purification of the concentrated brine and precipitation of lithium carbonate, which will minimize water and energy consumption.
It will then be sent to the Fiambala wastewater treatment plant, which will use a five-step process to produce LCE.
Neo Lithium was bought by Zijin Mining in early October.