Lycopodium Limited has won a A$37 million EPCM contract to develop a new silver oxide processing plant at Bolivia’s San Cristóbal Mine, aiming to boost silver production alongside existing operations.
- A$37 million EPCM contract awarded for silver oxide plant
- New 15,000 tpd plant to complement existing sulphides facility
- Project subject to final investment decision, completion targeted for 2030
- San Cristóbal Mine positioned as a major global silver producer
- Lycopodium to leverage Americas regional expertise across multiple offices
Strategic Expansion at San Cristóbal Mine
Lycopodium Limited (ASX:LYL) has landed a significant A$37 million Engineering, Procurement and Construction Management (EPCM) contract to develop a new silver oxide plant at the San Cristóbal Mine in Bolivia. This brownfields expansion will sit adjacent to the existing sulphides processing plant and aims to process oxidised ore, producing silver doré.
The San Cristóbal Mine, located in Bolivia’s Potosí Department, is already a major open-pit operation producing silver, zinc, and lead concentrates. The new 15,000 tonnes per day (tpd) oxide plant will run alongside the current 52,000 tpd sulphide plant, effectively increasing the mine’s overall throughput and diversifying its product output.
Project Timeline and Execution Challenges
Work on the project is set to commence immediately, with Lycopodium targeting completion by 2030. However, the project remains contingent on a final investment decision, introducing some uncertainty around timing and execution. The high-altitude location of the mine, situated at 4,000 metres above sea level, presents unique engineering and construction challenges that Lycopodium’s team will need to navigate.
Peter De Leo, Lycopodium’s Managing Director and CEO, highlighted the strategic importance of the contract: "This project positions the mine to become a significant silver producer on a global scale." He also noted the collaborative effort across Lycopodium’s Americas offices in Toronto, Argentina, and Peru, underscoring the company’s regional footprint and expertise.
Implications for Lycopodium’s Growth in the Americas
This contract adds to Lycopodium’s growing portfolio of EPCM projects across the Americas, reinforcing its position as a go-to engineering partner in the mining sector. The company’s recent wins, including multi-million-dollar contracts in Canada and West Africa, reflect its expanding global reach and capability to manage complex, multidisciplinary projects.
The San Cristóbal contract, while smaller than some of Lycopodium’s recent marquee projects, is strategically significant given the mine’s scale and the potential to ramp up silver production. It also aligns with Lycopodium’s broader growth strategy in critical minerals and precious metals processing.
Bottom Line?
The San Cristóbal EPCM contract signals Lycopodium’s deepening foothold in Latin America’s mining sector, but the final investment decision remains a key milestone to watch.
Questions in the middle?
- Will the final investment decision proceed on schedule given current market conditions?
- How will high-altitude challenges impact project costs and timelines?
- Could this project pave the way for further expansions or EPCM contracts in Bolivia?