MercoPress. South Atlantic News Agency

Argentine President welcomes SK firm's brass ahead of lithium project start

“They can count on our support,” Fernández said about POSCO

Argentine President Alberto Fernández Monday welcomed a group of executives from South Korean company POSCO (Pohang Iron and Steel Company) who are in the country to build a commercial lithium plant in the province of Salta. POSCO is the world's sixth-largest steel producer.

President Fernández met at Casa Rosada with authorities from the company, which has announced the beginning of the construction of a commercial lithium hydroxide plant in Salar Hombre Muerto, in Salta, through an investment of nearly US$ 4 billion will result in the creation of 1,900 jobs directly and indirectly.

During the meeting, Fernández was informed that the works will this Wednesday, and will guarantee a flow of foreign currency from net exports of approximately US$ 260 million per year over the next 30 years.

The executives also pointed out this was only the project's first stage, with a projected outcome of 25,000 tons of lithium, while at a later stage the company envisions output to reach 100,000 tons.

“They can count on our support, in the provinces where they are working they have very good governors with a very realistic view of what Argentina needs,” Fernández said.

POSCO CEO Jeong Woo: “We are focused on businesses” in the country “that are environmentally sustainable.” He added: “We give importance to both the environment and social issues, and our regional developments are with the creation of labor.”

Argentina's Development Minister Matías Kulfas also signed a memorandum of understanding with POSCO about the exchange of information and mutual assistance to evaluate new investment opportunities and best practices in mining and sustainable mobility.

The project, which is located in the northern part of the Hombre Muerto salt flat, in the border area between the provinces of Salta and Catamarca, will contribute to the generation of genuine foreign currency to finance the needs of the local economy, it was explained.

The first phase involves the construction of the new commercial lithium plant, within the framework of the Sal de Oro project, while the second and third phases are awaiting agreements between the provinces of Salta and Catamarca.

POSCO is present in 53 countries and has 63,000 employees worldwide. It has been a supplier to the South Korean automotive industry and shipyards for more than 40 years. It has three business lines: steel (automobiles, construction, renewable energy), infrastructure (liquefied gas, agribusiness, and construction), and new businesses (lithium and battery materials, and hydrogen).