AMG Mineração project with an investment of BRL 1,2 billion will expand existing mining plants in the state and will have a new structure for lithium exploration, aiming to greatly expand the production of the ore in Minas Gerais
AMG Mineração will build a new mining plant in the state of Minas Gerais, more precisely between the municipalities of Nazareno and São Tiago, in the central region of the state, according to an announcement made last Thursday (12/05). In addition company intends not only to bring the new structure for the exploitation of lithium in the state, but also to expand its operations that are already active in the state, as a way of providing strong growth in the national market.
AMG Mineração's new lithium exploration plant is the company's new bet for the sector's growth within the state of Minas Gerais
Brazilian mining company AMG Mineração has announced a new expansion plan that will involve a total investment of R$1,2 billion in Brazil. Thus, there will be the expansion of the Volta Grande mine, between the municipalities of Nazareno and São Tiago, in the Central region of Minas Gerais, and the construction of a new lithium exploration plant at the site. Thus, the company will be able to expand strongly its presence in the Brazilian mining market.
AMG Mineração's new lithium exploration plant in Minas Gerais will be responsible for transforming the concentrate into lithium carbonate, providing greater added value to the mineral extracted in Minas Gerais. In this way, the company will be able to guarantee even more quality in the commercialization of this resource within the mining market in Brazil. In addition, AMG Mineração also announced that initial operations at the new exploration plant are expected to start during the year 2026.
In addition, the company also stated that the investment of R$ 1,2 billion underwent several changes over the last year, due to inflationary problems in the mining market. Thus, the protocol of intentions referring to the project that had been signed with the government of Minas at the end of 2019, announcing BRL 838,9 million in investments, needed to be changed to the current scenario. And, with the growth in infrastructure and operation of AMG Mineração in recent years, the investment of R$ 1,2 billion will be equivalent to what the company intends to expand in the coming years.
Forecast for completion of new lithium exploration plant is for the year 2026, where it is expected to significantly expand the production of the resource in MG
The AMG Mineração project in the state of Minas Gerais is getting stronger, and the expectation is that the new lithium exploration plant can bring new paths for the company's productivity. Thus, the company's initial objective is to increase production from the current 90 tons/year to 130 tons/year, with implementation still between the months of June and July of this year, in search of the necessary bids for the continuity of the project.
The CEO of AMG Mineração Brasil, Fabiano José de Oliveira Costa, also commented on the deadlines and forecast for delivery of the exploration plant for 2026 and stated: “In the second half of 2023, we should be operating at nominal capacity in order to reinforce our position as the largest producer of lithium from primary rock in South America”.
Finally, the company highlighted that the lithium exploration plant will be essential for profitability in the mining sector. This happens because the ore beneficiation process is essential for increasing the purchase price, since, while the price of the concentrate ranges from US$ 3 to US$ 4 a ton, the chemical product is sold for US$ $70 a ton.
