Lithium mine expanding in Esmeralda County

WASHINGTON -- The only lithium mine in the nation is expanding in Esmeralda County.

Twenty new jobs already have been created either by Chemetall Foote, the mine operator, or by contractors at the production plant at Silver Peak, the company said.

During drilling of new wells in Clayton Valley to extract lithium that is suspended in underground springs, the project will employ another 50 people. The brine is evaporated in surface ponds, then the resulting concentrate is pumped to the factory three miles away.

When the expansion is finished in 2013 the company will have doubled its capacity to produce lithium carbonate, the raw material for lithium compounds that have industrial and technology uses. The work force will consist of 50 people, double the number from 2009, according to North Carolina-based Chemetall Foote.

The expansion was made possible partly through a $28.4 million federal stimulus grant from the Department of Energy, the company said. As part of a nurturing of industry to produce advanced transportation batteries, DOE is seeking to expand and upgrade lithium production.

The federal money also will install a geothermal power plant that is expected to make the operation self-sufficient for electricity.

"Using Nevada's solar and geothermal resources to nearly completely power our operation, we are able to reduce energy costs and make the operation more efficient," Nevada operations manager Joe Dunn said in a statement distributed by Sen. Harry Reid's office.

The Nevada project is part of an $56.8 million U.S. expansion by Chemetall Foote's parent company, Rockwood Holdings Inc., an international advanced materials company.

The mine expansion is a boost for sparsely populated Esmeralda County, County Commissioner Nancy Boland said in a prepared statement.

"At Christmas last year, the people of the town of Silver Peak had experienced only bad news. Longtime friends and co-workers were forced to leave due to layoffs; the economy was horrible. They felt hopeless and doomed to extinction," Boland said. "The expansion of the lithium operation will restore jobs and health to our community."

Boland and officials with Chemetall Foote said Reid, D-Nev., worked with the Energy Department to obtain the grant.

"(Reid) heard of our distress and proactively supported our county to accomplish this expansion," Boland said.

In a statement, Reid said, "The expansion of this project further demonstrates Nevada's commitment to renewable energy production and alternative power through advanced batteries."

Review-Journal writer Henry Brean contributed to this report. Contact Stephens Washington Bureau Chief Steve Tetreault at stetreault@stephensmediacom or 202-783-1760.