Infinity Lithium Corporation’s bold plans for its San José project in Spain have been buoyed after the Regional Government of Extremadura revealed key stimulus measures stemming from changes to its “Lithium Decree Law”.
In a further boost to the company’s operation, management says the Federal Constitutional Court has declared exploitation of lithium resources in Extremadura as projects of “general and regional interest”.
In a statement, the Regional Government of Extremadura reinforced its commitment to the development of lithium projects in the region through "promoting stimulus measures that provide competitive advantages for companies that want to process lithium mineral resources in the region, and for this all the legal guarantees that provide greater security to companies are also necessary".
The project sits near the town of Cáceres in the region of Extremadura and boasts one of Europe's leading JORC-compliant hard-rock lithium deposits, with a total indicated and inferred resource base of 111 million tonnes at 0.61 per cent lithium oxide.
Infinity plans to mine lithium ore and also refine it into lithium chemicals suitable for European battery makers. A 2021 scoping study estimated steady-state production on site, averaging 19,500 tonnes per annum of battery-grade lithium hydroxide in a 26-year period.
The declaration from the Government of Extremadura follows amendments made to the Lithium Decree Law by the Federal Constitutional Court, which annulled expropriation provisions and the requirement for all lithium exploited within the region to then be further processed to battery-grade lithium chemicals.
However, the law retains the first article, which states that "the exploitation of the lithium mineral resources, existing or potential, in the whole territory of the Autonomous Community of Extremadura is declared to be of general interest".
Infinity Lithium Corporation chief executive officer and managing director Ryan Parkin said: “The continued alignment of San José to local and regional stakeholders remains a priority for the Company and we welcome the commitment of the Regional Government to support socially, environmentally and economically beneficial lithium projects that are strategically critical for Spain and the EU’s green transition.”
The company has been working closely with local authorities and newly-elected officials to advance its lithium project, which will use renewable electricity sources to reduce its environmental impact.
San José was originally intended to be an open-pit mine. However, after consultation with regional authorities, the project has been redesigned as an underground mining operation that will lessen its impact on the surrounding region.
Infinity says its underground deposit will be accessed through a tunnel at the beneficiation plant and will deliver no visual, audible or vibration-based effects to the people of Cáceres.
The company’s wholly-owned Spanish subsidiary, Extremadura New Energies, is proposing a fully-integrated mining and downstream processing project to produce battery-grade lithium hydroxide from a lithium mica feedstock.
And to have the continued – and now recommitted – backing of the local government at the site where it is operating, can only be a good thing in a world of growing geopolitical influence.
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