With an Investment of R$ 1.2 Billion, AMG Mining Will Develop Lithium Exploration Project in Minas Gerais

AMG Mining Project With R$ 1.2 Billion Investment Will Expand Existing Mining Plants in the State and Will Feature New Structure for Lithium Exploration, Aiming to Strongly Increase ore Production in Minas Gerais

AMG Mining will build a new mining plant in the state of Minas Gerais, specifically between the municipalities of Nazareno and São Tiago, in the Central region of the state, according to an announcement made last Thursday, (12/05). Additionally, the company intends not only to bring the new structure for lithium exploration to the state but also to expand its operations that are already underway in the state, as a way to provide strong growth in the national market.

AMG Mining’s New Lithium Exploration Plant Is the Company’s New Bet for Sector Growth in the State of Minas Gerais 

The Brazilian mining company AMG Mining announced a new expansion plan that will involve a total investment of R$ 1.2 billion in Brazil. Thus, there will be an expansion of the Volta Grande mine, located between the municipalities of Nazareno and São Tiago, in the Central region of Minas Gerais, and the construction of a new lithium exploration plant on site. In this way, the company will be able to strongly expand its presence in the Brazilian mining market.

AMG Mining’s new lithium exploration plant in Minas Gerais will be responsible for transforming the concentrate into lithium carbonate, adding greater value to the mineral extracted from Minas Gerais’ lands. Thus, the company will be able to ensure even more quality in the marketing of this resource within the mining market in Brazil. Furthermore, AMG Mining also announced that the initial operations at the new exploration plant are expected to begin during the year 2026.

Additionally, the company stated that the investment of R$ 1.2 billion underwent several changes over the past year due to inflationary problems in the mining market. Therefore, the letter of intent regarding the project that had been signed with the Minas government at the end of 2019, announcing R$ 838.9 million in investments, needed to be adjusted to the current scenario. With the growth in infrastructure and operation of AMG Mining in recent years, the investment of R$ 1.2 billion will be equivalent to what the company aims to expand in the coming years.

The Forecast for the Completion of the New Lithium Exploration Plant Is for 2026, Where It Is Expected to Significantly Expand Resource Production in MG 

The AMG Mining project in the state of Minas Gerais is becoming 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 goal is to increase production from the current 90 thousand tons/year to 130 thousand tons annually, with implementation still between the months of June and July this year, in search of the necessary bids for the project’s continuity.

The CEO of AMG Mining Brazil, Fabiano José de Oliveira Costa, also commented on the deadlines and the expected 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 strengthen our position as the largest producer of lithium from primary rock in South America.”

Finally, the company emphasized that the lithium exploration plant will be essential for profitability in the mining sector. This is because the ore beneficiation process is essential for increasing the purchase value since, while the price of concentrate varies from US$ 3,000 to US$ 4,000 per ton, the chemical product is sold for up to US$ 70,000 per ton.