EV Resources (ASX: EVR) has confirmed that a Change of Use of Soil permit has been granted to the owner of the Tecomatlán processing plant in Mexico, located 50 kilometres from its high-grade Los Lirios antimony project.
The permit directly advances the company’s near-term antimony production timeline and moves it closer to the start of Phase 1 operations, pending submission of the last environmental report and approval of a grid connection application.
The application was lodged with Mexico’s Comisión Federal de Electricidad (CFE) for grid interconnection as an industrial user, which could only be done once the Change of Use of Soil permit had been granted.
CFE has confirmed that adequate capacity exists at the point of interconnection to support Tecomatlán’s projected electrical load with minimal physical infrastructure required.
Only a step-down transformer on an existing power pole and less than 150 metres of cabling to the plant’s switchboard will need to be added.
Gravity Circuit Connection
The permit is a fundamental pre-requisite under Mexican regulatory frameworks that allows EV Resources to file a preventive report in preparation for connecting the plant’s Phase 1 gravity circuit to the national grid.
EV expects the transition from diesel generators to the national grid to structurally improve the plant’s running costs and believes it will result in a material reduction in unit processing costs.
EV managing director Mike Brown called the permit “a major de-risking milestone”.
“Securing mainline power will not only insulate our unit operating costs from volatile diesel markets, but ensures the Tecomatlán plant establishes a highly efficient, clean, and low-cost processing footprint as we target first concentrate production in 2H CY2026,” he added.
Based on a reagent-free process flow sheet, including dry-stacked tailings design, the company will not require any other environmental permits prior to the start of construction activities.
Technical Engineering Review
As it awaits receipt of the Falcon gravity concentrators, EV Resources is focused on working with the CFE to review technical engineering designs and interconnection studies for the physical grid connection.
The company is in advanced discussions with regional miners to secure additional third-party feedstock and stockpiling material for Tecomatlán commissioning and operation, with offtake agreements also in progress to support first concentrate sales.
In addition to the operation at Tecomatlán, EV is advancing its flagship Los Lirios antimony project toward a maiden JORC resource.
The company is also looking to support the US domestic critical minerals supply chain with its 100%-owned Dollar and Milton projects in Nevada.
