MEETING of SENIOR EXPERTS GROUP (Santiago – Chile)
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_____________________________________________________________________________________ MEETING OF SENIOR EXPERTS GROUP (Santiago – Chile) 10‐11 November 2010 ASSESSMENT OF LITHIUM RESOURCES IN LATIN AMERICA: Opportunities and Issues for Sustainable Development BACKGROUND INFORMATION PAPER Prepared by Henri Maire Consultant United Nations Department of Economic and Social Affairs (DESA) Disclaimer: The views expressed in the paper are those of the author and do not necessarily reflect those of the United Nations Secretariat. 1 TABLE OF CONTENT PAGE Lithium minerals 3 Lithium occurrences environment 3 World Lithium Production (GRAPH) 4 Latin America Production Centers 4 Argentina 4 Bolivia 5 Chile 6 Brazil and Mexico 8 Production Considerations 8 World Lithium Mine Production (2008/2009) and reserves (table) 9 Chemical Composition of Lithium Brines Lakes (table) 9 Present Economic data on Main Centers of Production of Lithium (table) 10 Lithium Market 11 Exports of Lithium Products from SQM and SCL (table) 11 Royalties resulting from Exploitation at Salar de Atacama (table) 12 Environment 12 Legal environment 12 Argentina 13 Bolivia 13 Chile 14 Conclusions and Recommendations 15 Sources of Informations 15 Annex I: Regional Map 16 Annex II: Sustainability of Mining activities 17 2 LITHIUM MINERALS The Lithium element is widely distributed on Earth, but does not naturally occur in elemental form, due to its high reactivity. Seawaters contain an estimated 230 billion tons of lithium, though at a low concentration of 0.1 to 0.2 ppm. Estimates for crustal content range from 20 to 70 ppm by weight. In keeping with its name, Lithium forms a minor part of igneous rocks, with the largest concentration in pegmatite bodies. Only thirteen Lithium minerals are known, of which four have an economic significance to us because of their frequency and higher Lithium content: Spodumene (LiAl(SiO3)2 (4 to 8 % Li) has become the chief commercial source of Lithium. It occurs as colorless to yellowish / yellowish‐green prismatic crystals, often of great size. The varieties include kunzite (purplish or lilac) and hiddenite (emerald‐green),both of them considered as gem stones. Amblygonyte (LiAl(F,OH)PO4 (8 to 10 % Li) white to pale greenish or yellowish fluo‐phosphate with a luster vitreous to greasy. Lepidolite (2 to 4 % Li) phyllo silicate that belongs to the micas group. Its color varies from rose‐red to violet‐gray or lilac. Petalite (LiAl(Si2O5)2 a poly silicate 2 to 4 % Li LITHIUM OCCURENCES: Pegmatites: These coarse grained igneous rocks formed by the crystallization of post magmatic fluids, occur usually in close proximity to large magmatic intrusions. Pegmatites with Lithium content are relatively common and are frequently associated with Tin and Tantalum. Many of the Lithium discoveries resulted from work done on Tin and Tantalum complexes (ref.: Eastern R.D. Congo – Kivus). It has been at the origin of successful economic ventures in the US, Australia, Canada, R.D Congo, Zimbabwe, China, Russia.It was the major source of Lithium (65% of production in 1995) . However, in 2007, 86% of the production of Lithium came from brines, in majority genetically related with salt lakes. This environment (specially because of favorable mining, and processing costs) has been found to be economically more attractive to date. Continental Brines: These brines are waters which have leached surrounding volcanic rocks, and have had their Lithium content greatly enhanced through evaporation within closed basins. The Lithium content ranges from 30 to 60 ppm at the Great Salt Lake (Utah) where the evaporation rate is mild and there is a constant influx fresh water, to 200 ‐ 2000 ppm levels at high altitude salares in Argentina, Chile and Bolivia. However the presence of other elements, such as Iron, potassium, sodium, magnesium, nitrates, sulfates, carbonates, boron etc., can alter the economic interest of the brines Geothermal Brines: At the Salton Sea location in Southern California values of up to 140 ppm have been measured. Oilfield brines: large tonnages of lithium are contained in oil field brines In North Dakota, Wyoming, Oklahoma, East Texas and elsewhere, with brines grading to 70 ppm. 3 Hectorite clays are found in a number of areas over the Western US. The largest known deposit is associated with volcanic rocks over the Nevada / Oregon border, where present drilling is confirming large tonnages found through earlier exploration works. WORLD LITHIUM MINE PRODUCTION (in metric tons) Source: Mineral Commodities Summaries 1996, 1999, 2004 and 2010. United States Geological Service (USGS). LATIN AMERICA PRODUCTION CENTERS: Some 70% of the world’s presently recognized Lithium reserves are found within the region where Chile, Argentina and Bolivia meet (Map: Annexe I). It is known as the “Lithium Triangle”. It includes the Salar de Atacama (Chile), Salar de Uyuni (Bolivia), Salar del Hombre Muerto and Salar del Rincon (Argentina). These salares are remarkable because of their size and chemical constitution, however there are several other interesting prospective salares in the region which will certainly be considered in the future for their economic potential. Argentina The Salar del Hombre Muerto, with a salt nucleus covering 280 km2, is at an altitude of over 4000 meters. It has a relatively low lithium content (220 – 1000) but a very low concentration of impurities. It has an exceptionally low Magnesium/Lithium ratio of only 1.37/1. The brines grades are 692 ppm Li, and proved and probable reserves to a depth of 70 meters total 850 000 tons. Production started in 1997‐1998 with 12,000 tpy of Li2CO3 and 6000 tpy of LiCl. Costs range between US$ 0.8 to 1.2. For production, FMC opted for a proprietary recovery technique but there were costs overruns and the carbonate production was suspended, although the chloride production continued. 4 Admiralty Resources (Australia) is working at the Salar del Rincon located at 3740 meters. The salt nucleus covers 280 km2 and the grade 0.033% Li and 0.624%K. Porosity is 8% to 10%, in line with the other salares of the region. The Mg/Li ratio is 8.6/1 which will require a pre‐treatment to remove the Mg to allow Lithium Chloride to be produced. Proved and probable reserves are evaluated at 1,860,000 tonnes Li. Although an independent study (2005) estimated the reserves at 250,000 tonnes of Lithium metal or 13% of the latest figures. These reserves were upgraded in 2007 to 1.4MT (911,000 proved and about 500,000 probable). Pilot testing suggests a recovery of 70%, compared with 42% at Atacama. The company planned to produce by 2009 / 2010 8,000 tons of 99% Li2CO3 carbonate, together with chloride and hydroxide. Production, however, is only economically viable as a multi‐commodity operation: Lithium chloride, KCl, Na2SO4.. Olaroz: The salar is under evaluation by the Australian group Orocobre Ltd. The prospect offers a certain potential with concentrations of 900 ppm, and estimated reserves of 325,000 tonnes of Li. Plans are for production to start in 2011. It must be mentioned that there are numerous mineralized salares still to be inventoried and evaluated over the Argentinian Altiplano: Antofalla, Cauchari, Pachuelos, Centenario, Pastos Grandes. Bolivia The Salar de Uyuni, the largest salar in the world, at an altitude of 3 650 meters, covers an area of 9000 km2. Unlike the major Lithium containing salares in Chile and Argentina, it is completely flat, due to annual flooding. Mineralization: In 1981,brines grade was reported to be 0.035% Li and 0.72% K, with higher grades toward the southeastern portion of the salar, where values higher than 1000 ppm were recorded. One area (50 km2) averages 3000 ppm. The evaporation rate is about half that of Atacama, at 1,500 mm per year. Evans (2008) estimated the Lithium reserves at 5.5 MT (these are the total Lithium resource, and not necessarily economically recoverable resources). The USGS gave an estimate of 5.4 MT and the Bolivian Government (1980) estimated the resources at 9 MT. There is a high Magnesium/Lithium ratio of 18.6/1 ‐ 22/1. The high ratio will actually prevent the formation of Lithium Chloride (LiCl) in the evaporation ponds, unless Magnesium is removed before evaporation and the concentration starts. The problem is similar to that of the Salar del Rincon in Argentina. 5 Geologically, the salar is very different from Atacama: The Halite deposit is very thin, being only 11 meters thick at the thickest points, and only 2 – 5 meters thick in the southeast area of High Lithium concentration. The Halite however is porous all the way through with a much higher average porosity of 35%, and is filled with interstitial brine. This implies that Lithium available per unit surface is much lower and a greater area of the salar will have to be exploited for an equivalent Lithium production. Taking this into account the recoverable Lithium Reserve in the Central Highest grade Center of the Salar de Uyuni would be 300,000 tons of Li. Economics and environment: Doubts have been expressed concerning the justification of the Bolivian Government intention to build a plant capable to produce 60,000 tpy of Lithium carbonate equivalent in 2013. A more modest capacity would be more realistic. On the environmental side, there are considerable worries about the impact of the mining activities on the picture of one of the most attractive tourist attraction of the World. The region is of outstanding natural beauty, and the breeding ground of pink flamingoes during the December to February season. The lake is usually flooded from January to March, creating a lagoon area for the birds to feed. Tens of thousands of tourists visit the salar yearly , leaving considerable financial resources in the region, thanks to improvements made to the local infrastructure.