Power Minerals Secures Permits to Unlock Lithium Hub Potential at Pocitos

Strategic Milestone for Lithium Development

Power Minerals Limited (ASX – PNN) has taken a significant step forward in its lithium ambitions by securing all necessary environmental and hydrological permits to commence drilling at the Pocitos Project, part of its Rincon Lithium Joint Venture in Argentina. This approval from the Salta Provincial Government clears the way for a targeted hydrological drilling campaign aimed at confirming a reliable industrial water source, a critical prerequisite for the planned Direct Lithium Extraction (DLE) operations.

The Pocitos site, located within the renowned Lithium Triangle, was added to the Rincon JV earlier this year and is viewed as a cornerstone for developing a lithium carbonate production hub. The availability of water is a linchpin in this strategy, as DLE technology requires substantial freshwater resources to efficiently extract lithium from brine.

Infrastructure and Location Advantages

Beyond water, Pocitos boasts exceptional logistical and infrastructure benefits that enhance its appeal. The project enjoys direct access to the General Belgrano Railway, facilitating transport to both Pacific and Atlantic ports, a rare advantage in the region. Additionally, the proximity to natural gas pipelines and solar farms such as Cauchari and Altiplano provides a diversified and potentially cost-effective energy mix, supporting sustainable operations.

Further infrastructure upgrades, including the paving of Highway Route 27 and plans for a high-voltage electrical connection, are underway, alongside the development of a 435-hectare industrial park already partially utilised by industry players. These factors collectively position Pocitos as a highly attractive site for lithium carbonate production, aligning with global demand for clean energy minerals.

Joint Venture Progress and Investment

Power Minerals’ Managing Director, Mena Habib, emphasised the importance of securing a water source, stating that it is a vital step in realising the Rincon JV’s potential as a lithium production hub. The JV with Navigate Energy is nearing formal incorporation, which will unlock a committed US$4 million investment to fund development activities across both Rincon and Pocitos.

This injection of capital is expected to accelerate exploration and development, with drilling anticipated to commence late in 2025 pending finalisation of drilling contracts. The partnership underscores confidence in the project’s prospects and the broader lithium market outlook.

Looking Ahead

While the drilling results remain to be seen, the approvals and infrastructure advantages provide a solid foundation for Power Minerals to advance its lithium ambitions in Argentina. The company’s focus on integrating water resource evaluation into its development plans reflects a pragmatic approach to mitigating operational risks and enhancing project viability.

As global demand for lithium intensifies, projects like Pocitos that combine resource potential with strong infrastructure and regulatory support are likely to attract increasing attention from investors and industry alike.