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- Argosy Minerals (AGY) has resumed operations at its Rincon Lithium Project in Salta Province, Argentina, after the COVID-19 pandemic forced a temporary shutdown
- The project was put on a temporary suspension on March 31 this year, following a directive from the country’s President, Alberto Fernandez
- With restrictions now being reduced, the company has returned to pre-pandemic levels of production under a host of new safety policies
- As such, lithium carbonate products will continue to be supplied to Mitsubishi Corporation RtM Japan under a sales and purchase agreement
- Argosy Minerals is down 3.9 per cent on the market today, trading for 7.4 cents each
Argosy Minerals (AGY) has resumed operations at its Rincon Lithium Project in Salta Province, Argentina, after the COVID-19 pandemic forced a temporary shutdown.
Following a mandatory quarantine directive from the country’s President, Alberto Fernandez, the operational suspension took effect on March 31. The sweeping restrictions confined people to their homes, with limited flexibility given only for shopping for essential goods.
President Fernandez also noted at the time that anyone caught breaking the regulations may face criminal prosecution.
However, with the pandemic now on the decline in many regions around the world, the previously imposed restrictions are beginning to relax. As such, Argosy has now resumed pre-shutdown levels of production at the Rincon Lithium Project, which produces high-quality 99.5 per cent lithium carbonate.
That said, the resumption of operations has been undertaken in conjunction with extensive new health, safety and biosecurity measures, as outlined by the government of Salta Province and the Secretary of Mining and Energy.
Pursuant to this, Argosy said that it will continue to monitor the COVID-19 situation in the region and prioritise the wellbeing of its staff, partners and community.
Using its proprietary chemical processing technology, which was developed especially for the Rincon Lithium Project, Argosy is advancing its sales and purchase agreement with Mitsubishi Corporation RtM Japan. Under the deal, the company will ship 2,000 tonnes of lithium carbonate each year to the vehicle manufacturer over a period of three years.
Jerko Zuvela, Managing Director of Argosy Minerals, said he is pleased to have resumed operations at the Rincon Lithium Project.
“Our company and project fundamentals remain strong, and with the latest multi-billion dollar subsidies and investments in several European countries to support the EV industry, in addition to growth in Asia, I feel we will be strong beneficiaries given the project milestones completed to date and our stage of development…” Jerko added.
Argosy Minerals is down 3.9 per cent on the market today, trading for 7.4 cents each at 10:56 am AEST.
