Atacama hits the gas at Aguas Blancas

With commercial production cranked up at its Aguas Blancas iodine project in northern Chile, earlier this year, Atacama Minerals (AAM-V) has unveiled a board-approved plan to expand the project.

Aguas Blancas achieved its first-phase production rate of 720 tonnes of iodine per year in January, just short of a year after construction began. Plans are for capacity to be upped to 1,100 tonnes per year in 2002 and 1,500 tonnes in the first half of 2003.

Also under the plan, nitrate and sulphate production are expected to begin ahead of schedule. Construction of evaporation ponds used in the production of nitrate and sulphate will begin immediately. Via staged expansions, nitrate production at full steam is pegged at 100,000 tonnes annually and sodium sulphate at 300,000 tonnes each year.

The company is currently working with Chilean banks to finalize financing for the first expansion phase, which will include replacing the project’s diesel generator power with electricity from the Chilean national grid. The move to the grid is expected to significantly reduce long-term operating costs. Also, a new high-capacity water well is being developed to provide a water supply for the expansions.

At last count, Aguas Blancas hosted minable reserves totalling 44.6 million tonnes grading 512 grams iodine per tonne, 2.87% nitrate and 22% sodium sulphate. The deposit comprises salt-cemented beds, or caliche, up to 6 metres thick overlain by between 0.2 metres and 1 metre of barren, weakly consolidated sand and gravel.

The project is situated in the Atacama Desert of northern Chile, 100 km from the major Chilean port of Antofagasta. Atacama Minerals has a 50% interest in the project. ACF Minera has the remaining half-interest and is the operator.