Infinity Lithium ticks another development box for Spanish project

Infinity Lithium Corporation’s plans to develop its 75 per cent owned San José lithium project in Spain appear to be rolling forward after the company submitted an ‘Initial Document’ to effectively expedite the project’s next stages. Shortly after submitting the document, the Regional Government ratified a recent lithium-focused law that declared lithium extraction and processing are of regional and general interest.

The document is part of an integral permitting process that precedes an environmental impact assessment and the potential granting of a mining licence. Its submission follows the regional government’s calls for a technical presentation of the project and provides information regarding extraction, processing and possible locations for the company’s fully integrated industrial lithium conversion facility.

Now the document is submitted, the region’s environmental body will formulate a scoping document within three months, in advance of its assessment of the project’s impact.

Infinity’s development plan is centred on the manufacturing of battery-grade lithium compounds onsite from its mammoth San José resource of 111 million tonnes going 0.61 per cent lithium oxide.

The cornerstone resource is located near the city of Cáceres in the Extremadura region of Spain and has notably been hailed as the European Union’s second-largest JORC-compliant hard rock lithium deposit.

Despite its magnitude, Infinity’s project plans were waylaid in 2021 by the local community and the regional government’s opposition to the idea of extractive works. Infinity is currently engaged with the Contentious-Administrative Court in Cáceres to have its plans put back on track, however outside of this process after revising its proposal and engaging with the community amid a rising tide of battery demand, it appears the sentiment surrounding the project has changed.

Whilst the company anticipates a positive resolution to come from the court within the year, Infinity says it maintains successive rights to the deposit and other courses of action have been considered pending the final decision. Encouragingly for the company even though the matter is with the court, the regional government has acknowledged there are a number of avenues Infinity can take to start extracting from its lithium resource.

Regarding the submission of the document, City of Cáceres Mayor Mr Luis Salaya said: “This is good news, and this is what was asked of the company from all sides.”

In addition Infinity Lithium Executive Director, Ramón Jiménez said: “This scope document for the environmental impact study will incorporate the evaluations and indications from the technical assessment of the project and respond to everything that both the residents of Cáceres and the administrations have told us in terms of environmental sustainability.”

Jiménez also believes the presentation of the Initial Document maximises transparency and engagement with the locality of Cáceres whilst providing an opportunity to accelerate the formal administrative process.

Despite early opposition to the lithium operation, the regulators appear to have warmed to the idea and have been calling for a technical rundown of the project for months. In addition, the regional government has gone as far as declaring that lithium extraction and processing are of regional and general interest. The government also approved a mandate for lithium mineral resource projects to incorporate downstream lithium processing within the autonomous territory as it looks to capture more downstream processes and in turn prosperity for its people.

Regarding the decree, the President of Extremadura Guillermo Fernández Vara said: “I only have one priority above all others, which is the prosperity of the people…. the natural resources around us, if the laws are complied with, can be used, so that the people can have a better life.”

Whilst the purpose of the decree is to align the transformation of lithium resources in the region with the benefit of the public, it also enables accelerated administrative processing of projects and potential access to public funding.

As the development plans begin to come to light, Infinity is looking to move to sole control of the joint venture through the finalisation of payment obligations to its JV partner. The company says it retains the right to move to 100 per cent ownership through the exercise of an upfront call option of between €2m and €4m depending on the timing of the acquisition.

Lithium prices broke to new highs last week with Benchmark Mineral Intelligence’s ‘Lithium Index’ similarly reflecting a 122 per cent growth in the battery metal’s price since the beginning of 2022 and a 307 per cent increase over the past 12 months.

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