Central Puerto Is Advancing in Its Diversification Strategy and Positioning Itself as a Relevant Player in the Lithium Mining Industry

Rhea-AI Summary

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.

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

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

Press Contact:

Adrian Salvatore
Director of Corporate Affairs
Cel. +54 11 43175027
Adrian.salvatore@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.