Ulises Solis was interviewed by "El Comercio" newspaperhttps://elcomercio.pe/economia/dia-1/las-comunidades-aceptan-nuestro-proyecto-de-litio-noticia/ “Communities accept our lithium project”
Macusani Yellowcake, a subsidiary of Plateau Energy, struggles to carry out the Falchani lithium project in Puno. They says it is one of the largest in the world and add that they will endorse this statement in the coming months. How? Ulises Solis, general manager of the Canadian mining company, answers.
A sector of the geological community doubts Falchani's lithium potential. What do you have to say?
That the worst enemy of a Peruvian is another Peruvian. When I listen to people who question Falchani's lithium resources, without any foundation, it puts us in a bad mood. I would tell you: go and visit the area with your pick and hammer and take a sample. The site exists.
In the volumes that you mentioned?
Yes. And we believe that mineral resources exceed 4.7 million tons of lithium carbonate that we have reported.
Some experts point out that you have not done enough drilling to support such a high volume of resources.
That is why they are called ‘resources’, that is, they still do not have enough security to be reserves. That is why we are going to drill more, to convert lithium resources into reserves.
But have you drilled in Falchani?
We have made 29 platforms. That is, about 6,000 meters of perforations. And now we will do 36 thousand meters more. But, apart, we will explore a new area in the community of Quelccaya, where we hope to expand resources.
How will you fund the drilling campaign?
We already have the financing. On September 17th, we closed a private placement in the Canadian stock exchange to finance the drilling, which will cost US$ 3.6 million.
LITIGATION WITH THE GOVERNMENT
Do you have any metrics of how much the project will cost?
The issue is that we were going to launch the PEA, but, due to the legal problem we have with the government, we have adapted the study only for the Falchani community. The investment will be a little smaller.
What is the problem with the government?
The mining authority intends to expire 32 of our 151 concessions. They argue that we have not paid the validity fees. We have the proof that we have payed.
What will you do?
We will defend our 32 concessions. We will fight for them to death. We have already filed claims in the Judiciary, but we will continue to work on them because our lawyers have assured us that we will not lose them.
How much did you plan to invest in Falchani?
US$ 860 million.
And now?
A little more than US$ 700 million. The PEA will define it better.
And that money, where will it come from?
We are a public company. We have options. We can form joint ventures, merge or sell shares.
Are there investors who have come to buy the project?
A lot, but what I like about my shareholders is that they don't want to get rid of the project immediately. They want to take it forward as far as possible.
FALCHANI: THE NEXT MINE OF PUNO
What are the next steps in Falchani?
We will present the PEA study in October and once we have the reserves (approximately, in February 2020) we will start the feasibility study. We have also started the environmental impact study (EIA) by the Andes company. They say it will take 10 to 12 months.
When will the EIA end?
The EIA must be completed by August 2020, to be presented immediately to MINEM. That means that we would begin the construction of the mine in 2021 and, if possible, we would begin to exploit it in 2022.
How much lithium would Falchani produce?
We plan to start with 60 thousand tons of lithium carbonate, which would make us the second largest lithium producer in the world. The idea is to go to 100 thousand tons, which would make us the first producer.
Will you produce more than a salar?
The recovery of the Uyuni salt flats is below 50%. Falchani has a recovery of 99.74%. The price of our lithium is high because it is clean and pure. And, most importantly: the social issue. The communities of Puno accept our project and also the vice governor (the governor is in prison). In addition, if we go ahead, we will also exploit potassium.
Does Falchani also have potassium?
Yes. Puno can become the first producer of fertilizer in South America. That is another advantage of the project.
What will you do with uranium that is also abundant?
In Macusani there is uranium everywhere. But what we will do is the most logical thing at this moment: to exploit lithium, because it is a more demanded mineral in the world, to make cash. Then, we have to exploit the uranium.
Are there no fears about radioactivity?
In Macusani there is radioactivity but naturally. It is found in huts and crops. The villagers have lived with that for centuries. The funny thing is that there is not a single patient with cancer, when there are thousands in Lima.