Mining in Jujuy: Lithium Growth and Extended Operations at Chinchillas Silver Mine

Mining in Jujuy: Lithium Growth and Extended Operations at Chinchillas Silver Mine
Mining in Jujuy: Lithium Growth and Extended Operations at Chinchillas Silver Mine
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In an interview with Jujuy's Secretary of Mining and Hydrocarbons, José Gómez, the 2024 mining outlook for the province was positive, highlighting Exar’s production of 25,000 tonnes of lithium carbonate, Rio Tinto’s acquisition of Arcadium Lithium, and the imminent extension of Chinchillas’ operational life.

By Panorama Minero

Jujuy’s Secretary of Mining and Hydrocarbons, José Gómez, emphasized that 2024 was a highly positive year for the province's mining activity. He underscored the consolidation of the two main lithium projects operating in the Olaroz and Cauchari salt flats, with Exar reaching its planned production of 25,000 tonnes and Sales de Jujuy maintaining its operations, alongside the announcement of its acquisition by multinational Rio Tinto.

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Another significant milestone was the expansion of activities at the Chinchillas project, which, thanks to an addendum to the environmental impact study, will extend its operations for an additional two years, preventing its planned closure. This will prolong activity for at least four more years.

"2024 was an excellent year for mining in the province. Over the past two years, the sector has shown steady growth, and this year, lithium operations have achieved full consolidation," Gómez stated. He explained that both companies increased their production capacity and successfully completed the ramp-up process.

He particularly highlighted the progress of Sales de Jujuy with its new plant and Exar’s performance, which, despite operational challenges at over 4,000 meters above sea level, surpassed 50% of its installed capacity in its first year of production.

The Secretary further stressed that despite the decline in international lithium prices, sustained production ensured that mining activity in Jujuy remained unaffected. "This has positioned us as the country’s leading lithium carbonate producer," he emphasized.

Regarding the merger of Arcadium Lithium and Rio Tinto, Gómez clarified that the Mining Secretariat continues to recognize Arcadium Lithium as the operator in Jujuy, although the multinational’s acquisition represents an opportunity for growth. "Rio Tinto is a globally renowned company, and its arrival in the province could bring new investments and further sector development," he analyzed.

Exploration Projects in Jujuy

Regarding exploration projects, Gómez mentioned progress in the Laguna de Guayatayoc area, where some social conflicts persist. However, he highlighted that Lition Energy was able to advance with exploration at Mina Goni and Mina Teresa, carrying out drillings whose results have yet to be determined.

Additionally, in the same region, an environmental impact report for advanced exploration was recently approved, allowing Tech Energy to conduct two drillings and pumping tests. "We hope that exploration will expand and improve in 2025. We expect that within a few years, we could have another lithium operation, although the process is still in its early stages," the official explained.

The Secretary also noted that mining exploration has a limited success rate. "Out of every ten exploration campaigns, at best, only one results in a productive project," he stated. However, he highlighted Jujuy’s potential in rare earth exploration, particularly in the Susques area, where two companies—Lítica and another under the same operator—are conducting surface prospecting.

Another significant advancement in exploration is the direct extraction pilot plant in the Jama Salt Flat, operated by Lilac Solutions, which began operations in late 2024. "During the first quarter of 2025, results will be evaluated to determine the project's feasibility," Gómez detailed. Additionally, Patagonia Lithium is conducting initial exploration in southern Jama.

Extension of Operations at Mina Pirquitas and Chinchillas

One of the most significant announcements was the submission of an addendum to the environmental impact report by Mina Pirquitas, which is currently under evaluation along with the province's Cultural Heritage Office due to an archaeological finding in the area. If approved, this extension would allow Mina Chinchillas to continue operating for at least two more years.

Following the recent submission of the addendum, the planned closure in June 2025 would be postponed, enabling the continued processing of low-grade materials that were previously unprofitable. "Now, with current silver prices, this material can be processed efficiently, which would extend Mina Pirquitas' plant life by approximately three to four more years," the Secretary explained.

Gómez emphasized that this extension is good news for local communities, particularly for workers and suppliers in Santo Domingo, where Mina Chinchillas is located. The mine employs 350 people, excluding those working at Mina Pirquitas’ processing plant. "Securing two more years of activity is a major boost for the community and the families who depend on mining," he noted.

Mina Aguilar and Other Metalliferous Projects

Regarding Mina Aguilar, Gómez reported that the company maintained stable production in 2024, although at lower volumes than in previous years. "We conducted four to five inspections and confirmed that they are complying with closure and internal underground exploration plans," he explained. Currently, the mine employs approximately 300 people and focuses on lead and zinc production.

The Secretary also highlighted the presence of small and medium-sized mining companies in the province. One example is Mom Mining, which operates the Martín Bronce project, producing copper in Jujuy and exporting it to Chile. The company recently submitted an environmental impact study to install a copper leaching plant using an innovative method that relies on biodegradable organic materials instead of chemicals.

Regarding alluvial gold projects, Gómez mentioned three advanced initiatives in Jujuy: "Ajedrez" by Espíritu de los Andes in Oromayo and "Mina Córdoba" by Minera Santa María in Liviara. These operations use chemical-free processes, where water extracted from the river is reused for mineral washing before being returned to the watercourse.

Mining Exports and Outlook

Finally, Gómez analyzed the impact of mining exports on the provincial economy. In 2024, lithium export volumes increased, although revenue in local currency did not reflect the same growth due to the mineral’s price decline. However, silver prices remained high, allowing Chinchillas’ exports to match those of the previous year.

"Despite global market challenges, Jujuy’s mining balance remains positive, strategically positioning us for the future," Gómez concluded.

Regarding employment, the Secretary estimated: "Broadly speaking, we closed the year with approximately 10,000 direct mining jobs. We are still finalizing indirect employment figures with information from the Secretariat of Industry and Commerce, but the number is always higher."

He explained that the data still needs to be cross-referenced with the Secretariat of Industry and Commerce, led by Diego Suárez, who oversees mining suppliers. "With these developments, Jujuy reaffirms its position as a key player in the national mining sector, which continues to expand and offers new investment opportunities on the horizon."

Published by: Panorama Minero

Category: News

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