Argentina's supreme court creates headwind for Jujuy and Salta lithium projects

Argentina’s supreme court ordered the national government and the provinces of Salta and Jujuy to report within 30 days if the current projects for the extraction of lithium and borate are affecting water and the environment.

The ruling involves Lake Resources, Ganfeng Lithium, Lithium Americas, Minera Exar, Allkem, Dajin-Litica, Eramine Sudamerica, Posco, Rio Tinto and Argosy Minerals, among others.

The indigenous communities of Santuario de Tres along with other groups and environment and natural resources foundation FARN have argued that their rights to live in a "healthy environment, to life, to water and to self-determination" are being damaged by the projects.

In addition, the claim states the Salinas Grandes wetland and the Guayatayoc lagoon, which includes interjurisdictional areas, are being affected.

The claimants demand the suspension of the authorizations for the exploration and exploitation of lithium and borate in the two northwest provinces. The court ruled on Tuesday that the defendants must send copies of all their permits to mine, as well as complaints received regarding environmental matters.

The court also said a committee of experts must be formed to evaluate the hydrology, biodiversity and socio-cultural impact of the lithium projects. The ruling can be seen in an attachment on the top right of the screen.

Lithium is seen as key to contributing to the country's economic recovery.

Argentina has a portfolio of lithium projects totaling US$7.6bn comprising six initiatives under construction, two in feasibility, three in prefeasibility, five in preliminary economic assessment and 20 in advanced exploration, according to the economy ministry.

However, socio-environmental pressures have escalated and there is a bill in congress to give greater protection to wetlands.

“Although the chamber [of deputies] has not set a date to debate the bill, it could have implications depending on the location and characteristics of the wetlands in the mining projects that can range from prior environmental approvals to prohibitions to carry out activity,” Adolfo Durañona, Baker McKenzie's senior partner for Argentina, told BNamericas.

Some of the companies that will have to respond in Jujuy are:

Company	Projects	Estimated Production
Lake Resources	Cauchari and Olaroz	80,000t/y LCE
Gangfeng Lithium, Lithium Americas and JEMSE. Controlled by Minera Exar.	Cauchari-Olaroz	40,000t/y LCE
Allkem	Salar de Cauchari and Salar Olaroz	Both exceed 40,000t/y LCE
Dajin-Lithic	Salinas Grandes	advanced exploration

And in Salta:

Company	Projects	Estimated Production
Lithium Americas	Pastos Grandes	24,000t/y battery-grade lithium carbonate
Eramine South America	Centenario Ratones	24,000t/y of LCE
Ganfeng Lithium	Mariana	10,000t/y of LCE
Posco	Sal de Oro	25,000t/y of LCE
Rio Tinto	Salar del Rincón	N/A
Argosy Minerals	Rincón	10,000t/y of LCE