S.Korean firms sign deal on Argentine lithium project

SEOUL — A consortium of South Korean firms has signed a joint venture with a Canadian mining firm to explore lithium ore in Argentina, a report said Saturday.

The deal marks the first time that South Korean companies have participated in the overseas exploration of lithium, Yonhap news agency said.

The consortium will own a combined 30 percent stake in the Sal de Vida lithium brine project in northwest Argentina, it said.

The deal was signed Friday in Seoul between Canada's Lithium One Inc and three Korean firms -- GS Caltex, LG International Corp and the state-run Korea Resources Corp (KORES), Yonhap said.

The consortium's initial investment in the project will be 15 million dollars, it said.

If the project is successful, the mine will be able to produce 12,000 tons a year of lithium carbonate, a colourless salt widely used in the manufacture of ovenware, ceramic glaze and tile adhesives, a KORES official told Yonhap.

South Korea could secure 6,000 tons, the official said, higher than its annual lithium imports.

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