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Central Puerto (NYSE: CEPU) has announced a strategic investment in the ‘3 Cruces’ lithium mining project in Catamarca, Argentina, acquiring a 27.5% stake in the project. This investment marks the company’s expansion from its core electricity generation business into the mining sector, specifically targeting lithium production in what is described as Argentina’s highest-grade lithium basin.
According to Fernando Bonnet, General Manager of Central Puerto, the project aims to generate quality employment and promote economic growth in southern Catamarca. The company emphasizes its commitment to responsible project execution, environmental protection, and community engagement. This strategic move aligns with Central Puerto’s focus on export industries and positions the company in the electric mobility and renewable energy value chain.
Central Puerto (NYSE: CEPU) ha annunciato un investimento strategico nel progetto minerario di litio ‘3 Cruces’ a Catamarca, Argentina, acquisendo una parte del 27,5% nel progetto. Questo investimento segna l’espansione dell’azienda dal suo core business nella generazione di elettricità al settore minerario, mirando specificamente alla produzione di litio in quello che è descritto come il bacino di litio di più alta qualità in Argentina.
Secondo Fernando Bonnet, Direttore Generale di Central Puerto, il progetto mira a generare occupazione di qualità e promuovere la crescita economica nel sud di Catamarca. L’azienda sottolinea il suo impegno per un’esecuzione responsabile del progetto, la protezione ambientale e il coinvolgimento della comunità. Questa mossa strategica è in linea con il focus di Central Puerto sulle industrie esportatrici e posiziona l’azienda nella catena del valore della mobilità elettrica e delle energie rinnovabili.
Central Puerto (NYSE: CEPU) ha anunciado una inversión estratégica en el proyecto minero de litio ‘3 Cruces’ en Catamarca, Argentina, adquiriendo una participación del 27,5% en el proyecto. Esta inversión marca la expansión de la empresa de su negocio principal de generación de electricidad hacia el sector minero, apuntando específicamente a la producción de litio en lo que se describe como la cuenca de litio de más alta calidad de Argentina.
Según Fernando Bonnet, Gerente General de Central Puerto, el proyecto tiene como objetivo generar empleo de calidad y promover el crecimiento económico en el sur de Catamarca. La empresa enfatiza su compromiso con la ejecución responsable del proyecto, la protección del medio ambiente y la participación de la comunidad. Este movimiento estratégico se alinea con el enfoque de Central Puerto en las industrias de exportación y posiciona a la compañía en la cadena de valor de la movilidad eléctrica y la energía renovable.
Central Puerto (NYSE: CEPU)는 아르헨티나 카타마르카에 있는 ‘3 크루세스’ 리튬 채굴 프로젝트에 전략적 투자를 발표하며, 이 프로젝트에서 27.5%의 지분을 인수했습니다. 이 투자는 전력 생산 사업에서 광업 분야로의 확장을 의미하며, 아르헨티나의 최고 품질 리튬 분지에서 리튬 생산을 목표로 하고 있습니다.
Central Puerto의 총괄 관리자 페르난도 보넷에 따르면, 이 프로젝트는 질 좋은 일자리 창출과 남부 카타마르카의 경제 성장을 촉진하는 것을 목표로 하고 있습니다. 회사는 책임 있는 프로젝트 실행, 환경 보호 및 지역 사회 참여에 대한 헌신을 강조합니다. 이 전략적 움직임은 Central Puerto가 수출 산업에 집중하는 것과 일치하며, 전기 이동성과 재생 가능 에너지 가치 사슬에서 회사를 위치시킵니다.
Central Puerto (NYSE: CEPU) a annoncé un investissement stratégique dans le projet minier de lithium ‘3 Cruces’ à Catamarca, en Argentine, en acquérant une participation de 27,5% dans le projet. Cet investissement marque l’expansion de l’entreprise de son activité principale de production d’électricité vers le secteur minier, en visant spécifiquement la production de lithium dans ce qui est décrit comme le bassin de lithium le plus riche en Argentine.
Selon Fernando Bonnet, directeur général de Central Puerto, le projet vise à générer des emplois de qualité et à promouvoir la croissance économique dans le sud de Catamarca. L’entreprise souligne son engagement envers une exécution responsable du projet, la protection de l’environnement et l’engagement communautaire. Ce mouvement stratégique est en accord avec l’orientation de Central Puerto vers les industries d’exportation et positionne l’entreprise dans la chaîne de valeur de la mobilité électrique et des énergies renouvelables.
Central Puerto (NYSE: CEPU) hat eine strategische Investition in das Lithium-Minenprojekt ‘3 Cruces’ in Catamarca, Argentinien, angekündigt und sich eine Beteiligung von 27,5% an dem Projekt gesichert. Diese Investition markiert die Expansion des Unternehmens von seinem Kerngeschäft der Stromerzeugung in den Bergbau und zielt speziell auf die Lithiumproduktion in dem, was als das hochwertigste Lithiumbecken Argentiniens beschrieben wird.
Laut Fernando Bonnet, dem Geschäftsführer von Central Puerto, zielt das Projekt darauf ab, qualitativ hochwertige Arbeitsplätze zu schaffen und das wirtschaftliche Wachstum im Süden von Catamarca zu fördern. Das Unternehmen betont sein Engagement für eine verantwortungsvolle Projektdurchführung, den Umweltschutz und die Einbindung der Gemeinschaft. Dieser strategische Schritt steht im Einklang mit dem Fokus von Central Puerto auf Exportindustrien und positioniert das Unternehmen in der Wertschöpfungskette der elektrischen Mobilität und erneuerbaren Energien.
Positive
- Strategic acquisition of 27.5% stake in high-grade lithium mining project
- Diversification from core electricity business into export-oriented mining sector
- Entry into growing lithium market for electric mobility and renewable energy
Negative
- Significant capital allocation required for mining venture outside core business
- Execution risks in new industry segment
- Environmental and regulatory compliance risks in mining operations
Insights
The acquisition of a 27.5% stake in the “3 Cruces” lithium project marks Central Puerto’s significant pivot from traditional power generation into the lucrative lithium mining sector. Located in Argentina’s Catamarca province, this project holds strategic value due to its position in the highest-grade lithium basin discovered in the country. This diversification comes at a important time when global lithium demand is projected to surge, driven by electric vehicle battery production and renewable energy storage needs.
The investment represents a calculated move to tap into Argentina’s lithium triangle advantage, which, alongside Chile and Bolivia, holds approximately 65% of the world’s known lithium reserves. The project’s location in a high-grade basin suggests potentially lower extraction costs and higher profit margins compared to lower-grade deposits. For a company with a market cap of $2.17B, this strategic pivot could significantly impact future revenue streams and market valuation.
From an operational perspective, entering the lithium sector diversifies CEPU’s revenue base away from regulated electricity markets, potentially providing better exposure to global commodity prices and hard currency earnings. This is particularly relevant given Argentina’s historical currency volatility and economic challenges.
The strategic investment in “3 Cruces” positions CEPU at the intersection of two critical ESG trends: clean energy transition and sustainable mining practices. The company’s commitment to environmental responsibility and community engagement in Catamarca aligns with increasingly stringent ESG requirements from institutional investors.
However, lithium mining faces growing scrutiny over water usage and environmental impact. CEPU’s success will heavily depend on implementing sustainable extraction methods and maintaining strong community relations. The emphasis on local employment and economic development in the announcement suggests awareness of these challenges, but execution will be critical.
The move strengthens CEPU’s ESG profile by expanding from traditional power generation into materials essential for clean energy transition. This could attract ESG-focused investors and potentially lead to improved sustainability ratings, which increasingly influence capital allocation decisions in global markets.
Buenos Aires, Argentina–(Newsfile Corp. – December 27, 2024) – Central Puerto, (NYSE: CEPU) a leader in electricity generation in Argentina, continues to consolidate its investment strategy in the forestry and mining sectors and announces today a strategic investment in the “3 Cruces” lithium mining project, located in the province of Catamarca. This initiative reaffirms the company’s commitment to boost the Argentine mining industry, especially in those projects linked to the production of critical elements for the energy transition, which also represents a significant improvement for the economic and social development of the province of Catamarca.
With this investment, Central Puerto acquires a 27.5% stake in the “3 Cruces” project, recognizing its great potential as a future lithium-producing mine in the highest-grade basin discovered in Argentina. This decision is aligned with the company’s vision of focusing on export industries that show high comparative advantages and consolidating itself as a key player in the value chain of electric mobility and renewable energies.
Nevado Tres Cruces, Catamarca, Argentina
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Fernando Bonnet, General Manager of Central Puerto, said: “This investment not only represents an important milestone in Central Puerto’s growth strategy, but also a unique opportunity to promote the development of the southern region of the Province of Catamarca. The “3 Cruces” project will generate quality employment for the inhabitants of the region, promoting economic and social growth. In addition, as part of this project we are committed to contributing all our capacity to collaborate in carrying out this project responsibly, respecting the environment and working closely with local communities”.
Lithium is a strategic mineral for the future of energy and mobility, and we are convinced that “3 Cruces” has the potential to become a benchmark project for the region. With this initiative, Central Puerto reaffirms its objective of becoming an essential player, as an Argentine company, in the development of mining in the country and as a protagonist in the challenges posed by the energy transition.
About the “3 Cruces” project
3C is a recently discovered high-grade lithium project in Argentina.
It is located in the Province of Catamarca, Argentina. Approximately 30 km from the Chilean border and 154km from Fiambala. The company already owns 100% of a total of 27,540 ha adjacent to the 3Q project of the former Neo Lithium Corp., now Zijin Corporation; and controls another 50,000 ha of neighboring areas. Initial work began in December 2023, with the consolidation of mining rights with its epicenter at the Tres Cruces Volcano and the alluvial cone right next to the Tres Quebradas salt flat.
The preliminary results of Geophysics also confirm a geology shared with Tres Quebradas, so high grades and low impurities are expected.
About Central Puerto S.A.:
Central Puerto is a leading company in the production of electricity in Argentina that has 14 generation plants of various technologies, more than 1,600 employees and reaches a 20.13% market share thanks to its operational excellence and profitability. Its mission is to produce electricity in an efficient, sustainable way and in harmony with the environment. At the same time, it seeks to contribute to the supply of demand, managing businesses in a way that creates value not only for the company, but also for society. Currently, it has an installed generation capacity of 6,703 MW. For more information, please visit: www.centralpuerto.com
To view the source version of this press release, please visit https://www.newsfilecorp.com/release/235397
FAQ
What percentage stake did Central Puerto (CEPU) acquire in the 3 Cruces lithium project?
Central Puerto acquired a 27.5% stake in the 3 Cruces lithium mining project located in Catamarca, Argentina.
Where is the 3 Cruces lithium project that CEPU invested in located?
The 3 Cruces lithium project is located in the province of Catamarca, Argentina, in what is described as the country’s highest-grade lithium basin.
How does the 3 Cruces investment align with CEPU’s business strategy?
The investment aligns with Central Puerto’s strategy to diversify into export industries and position itself in the electric mobility and renewable energy value chain.
What are the expected community benefits from CEPU’s 3 Cruces project?
The project is expected to generate quality employment for local inhabitants and promote economic and social growth in the southern region of Catamarca province.
