Global lithium chemical developer Allkem (ASX:AKE) has signed a US$130 million project financing facility with the International Finance Corporation (IFC) for its Sal de Vida Project in the Catamarca Province of Argentina.
The company says the agreement comprises 2 loans of US$100 million and US$30 million, respectively, and will be valid over a 10-year period.
Meanwhile, Allkem reports it is in discussions with another lender to increase the project finance facility by a further US$50 million, for a total financing package of US$180 million.
The company notes this facility has been structured as a green and sustainability-linked loan, which it believes represents the recognition and validation of the high ESG standards already adopted at Sal de Vida by Allkem.
The company also notes a sustainability-linked green loan combines ‘ambitious’ environmental and social targets that support the responsible and sustainable development of lithium by Allkem for a greener future and regional economic growth in the province of Catamarca.
Commenting on the signing of the project financing agreement, Allkem Chief Executive Officer (CEO) and Managing Director Martin Perez de Solay says: “We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities.
“We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities”
We are committed to the highest sustainability standards for Sal de Vida so that it will contribute to the economy of Catamarca via local employment, the development of local supply chains, and community development programs.”
Allkem is an ASX-listed specialty lithium chemicals company with a global portfolio comprising lithium brine operations in Argentina, a hard-rock lithium operation in Australia, and a lithium hydroxide conversion facility in Japan.
The company’s Sal de Vida project is located in the Catamarca Province on the Salar del Hombre Muerto, about 1,400 km northwest of Buenos Aires, Argentina.
Allkem had US$577.9 million cash at hand as of 31 March 2023, as stated in its latest quarterly report.
IFC represents a member of the World Bank Group, the largest global development institution focused on the private sector in emerging markets.
Write to Adam Drought at Mining.com.au
Images: Allkem Ltd
