Allkem Limited has signed a project financing facility with the International Finance Corporation (IFC) for the Sal de Vida Project in Catamarca Province, Argentina.
The ambitious sustainability aims of the Sal de Vida project, which are related to the Sustainable Development Goals (SDGs), include lowering the intensity of Scope 1 and 2 operational greenhouse gas emissions and expanding the use of renewable energy in the production process by 2030.
IFC has conducted an extensive environmental evaluation, including a review of brine extraction and water usage and the accompanying monitoring and mitigation plan. Allkem technical teams took part in the process and have worked to agree to the IFC’s Environmental and Social Action Plan (ESAP) for execution.
IFC project financing of up to US$130 million is offered over a ten-year term with a two-year grace period. Following the fulfilment of specific requirements and parameters, including project Financial Completion, the loan does not benefit from a parent guarantee.
“We are proud to partner with IFC to ensure long-term safe and sustainable operations, responsible products, and thriving communities. We are committed to the highest sustainability standards for Sal de Vida so that it will contribute to the economy of Catamarca via local employment, the development of local supply chains, and community development programs,” Allkem Managing Director and CEO Martin Perez de Solar said.
Additionally, Allkem is in discussion with another lender about increasing the project finance facility by another $50 million for a total financing package of $180 million.
