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MORE INFO IN THIS ARTICLE ABOUT FINANCING. AND PHASE 1 & 2

The typical image of the lithium exploitation plants in the Atacama salt flat, with kilometric evaporation pools, will not be that of Ensorcia, the firm that since October has an agreement with the National Mining Company (Enami) to exploit, first in an experimental phase, and then productive, the salaries of the state in Aguilar, in the Third Region. But also negotiates with the University of Santiago to do the same in the Salar de Yamara.

Instead of the evaporation pools, they will use a technology created in the United States called MU, according to the president of Ensorcia, the American Daniel Layton. In simple words, explains, allows to install a mobile unit next to a salt, extract the chemical mixture containing lithium inside this same machine and, once extracted the lithium salts, return the water and other minerals to the salt . The objective is to develop 99.9% battery-grade lithium in Chile. The technology already exists and has been tested experimentally in the United States, and now they want to do it for commercial purposes in Chile, he details. At the end of this year, he explains, they will begin with the first productive phase.

The firm Ensorcia Chile, linked to the American entrepreneur Daniel Layton, the creator of the MU technology and lithium expert John Burba and the Chilean entrepreneur Ricardo Donoso - creator in the 2000s, among other things, text messages to vote in contests of television and cell phone manufacturer Azumi-, plans to start operations in the fourth quarter of this year investing US $ 220 million.

Enami will be a shareholder of 10% of the company that will exploit the lithium in Chile, in an agreement signed by the former executive vice president of Enami, André Sougarret. Of course, the conversations with the Government began in 2016 under the administration of Michelle Bachelet and concluded in the current one. "They have received us very well, they have been receptive and they have offered help for our income, we have been working with the Government for two years for the agreement with Enami," says Layton. In addition, having Enami permits on the salar of Aguilar, for Ensorcia is much easier to exploit.

Meanwhile, in Argentina it is also looking for an area to exploit and invest another US $ 200 million.

"Two and a half years ago we decided to take a different direction from what we already do in the United States with the business of gas, oil and other commodities, and we were looking at something where we could apply a good technological base, I am very believer in electromobility, and that is one of the main industrial revolutions, we started looking at all lithium options in the market, and the obvious choice was Chile, "explains Layton from the United States.

The initial phase of exploitation considers to start producing lithium chloride at 40%, with a re-injection to the salt of 90% of the salts and water. In a second phase, 99.9% battery grade lithium carbonate will be produced.

The financial resources, explains the president of the company, will be obtained in the first phase with the company's own funds, and in a second phase they will seek financing from banks. They are in talks with seven Chilean and foreign banks.

On the possible over-expectations with the lithium industry and its consequent effect on the price, Layton believes that it is not such. "According to a series of reports, there is a good amount of supply, but the demand continues to rise in the automotive companies, and there is also the high demand for electric buses."

Layton also states that he knows his competitors in Chile, and about Tiangi's recent conflict of entering the property of SQM subtracts drama. "Here in the United States it is very normal for there to be noise when there is an acquisition. It's good that there are these discussions, especially because the market is small and very important, "he says.
http://www.elmercurio.com/inversiones/noticias/analisis/2019/01/21/planta-de-litio-de-empresa-de-eeuu-y-enami-iniciaria-operaciones-a-fines-de-2019.aspx