George Frangeskides, Chairman at ALBA, explains why the Pilbara Lithium option ‘was too good to miss’. Watch the video here.
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Kiran has already said that any expansion would mean our areas are needed sooner and more will be needed from them which increases the NPV dramatically.
Ganfeng have already announced 50ktpa Hydroxide and purchased land for expansion they have clearly been planning this for a while. They know the purity and grades of Sonora are exceptional.
why not… 100% of the planned production is sold… mexico will want additional production to supply incumbent industries… batteries (plant) required…
As long as the president of Mexico doesn't invite Nancy Pelosi down to Sonora. things might just work out right for us. taking 51% the Mexican president could claim control "A Win in his eyes" if they did take a 51% stake. would that not move our area forward dramatically..
Good find , seems to be m o like you say. Same plan different continent .
51% government owned sounds familiar… could be the same ganfeng m.o… same result… just a different order of events… https://www.lse.co.uk/rns/EMH/proposed-subscription-by-cez-for-51-of-geomet-5i5kl2pd4u5nqz6.html …
I'm sure many have seen the cunning plans for A_L.O to develop Mexican lithium with Latin American companies, well he seems to be more aligned with Bolivia of late with Chile and Argentina signing deals one after another with private companies:
Bizarre:
https://www.reuters.com/markets/commodities/bolivia-delays-decision-lithium-mining-tie-ups-december-2022-06-17/
Despite decades of attempts, Bolivia has yet to achieve any commercial lithium production. Demand for the ultra-light metal has surged in recent years.
really!
Economy Minister Tatiana Clouthier re Tweeted a comment by the Ecomomia Mexico “ We celebrate the approval by the United States House of Representatives of the “Inflation Reduction Act”, which includes electric vehicles produced in Mexico, in the tax incentive proposed by the United States.”
This is a crucial factor that has to be considered. Whether the Mexican Govt taking a 51% majority stake in any public/private partnership still entitles them to participate in the US EV tax incentive scheme remains to be seen. Resolving this could well be at the heart of any ‘behind closed doors’ negotiations.
Indeed @EV. News feels close...
You'd think Ganfeng may also have been awaiting the 100% buyout completion of BCN before completing any deal with Mex gov.
https://www1.hkexnews.hk/listedco/listconews/sehk/2022/0808/2022080800908.pdf
"Recently, the Company received a notice from Shanghai Ganfeng that Shanghai Ganfeng has completed the offer to Bacanora. Shanghai Ganfeng now holds 100% equity interest of Bacanora."
Ganfeng Lithium Co., Ltd
Board of directors
August 9, 2022
High noon at the ok corral…. no bets on who will blink first….. who has the most to lose?! ;-)
@EV_Bull, @Zoom56
hit nail on the head I would say!
and the pressure must be on to deliver something before Aug 24th, there can be no way the recent conversations with car manufacturers haven't centred on lithum being available from circa 2024 onwards.
Worth keeping an eye on Economy Minister Tatiana Clouthier and something like plan one from last year,
https://www.reuters.com/article/mexico-lithium-idCAL2N2ND22S
Economy Minister Tatiana Clouthier told local radio last month that the government was considering a public-private partnership to develop lithium. She suggested the state might have a 51% stake, a blueprint Armenta says he also now backs.
GL
All avenues explored re Sonora - back to plan A then as the most logical, practical and expedient solution.
There won’t be too many private companies with aspirations of getting involved in lithium mining in Mexico that haven’t already got legal approvals in place. It already looks like a state/private duopoly going forward. They can’t over tax it if they want to consider attracting other private companies in the future. Should work out well for those already involved….. we’ll know soon enough if common sense has prevailed.
Which is why the whole idea is stupid and they should have just added a lithium royalty/tax on top instead of nationalising it!
No downside risks involved with taxation however at a certain point it may reduce investment.
REM Mexico shows amazing foresight by whoever named it….. uncanny! ;-)
@EV-Bull Re Snr Monroy’s comments … therein lies the big rub for the Mexican Govt. How can they take out the profits for the state without paying back the debt/set up costs as they’ve done with Pemex? - current debt to suppliers of $13.5bn. They’re recognising the enormity of the investment it will take to make a success of it and the time factor to get it up and running ASAP.
Sounds like they’re trapped between a soft rock and a hard place!;-)
‘ Litio para Mexico"- lithium for Mexico
Wonder how Our Rem Mexico is doing?
I'm seeing more and more talk of public-private partnerships for "Litio para Mexico"
Gonzalo Monroy, general director of the energy consultancy GMEC, maintains.
"We are very far from a commercial exploitation. The times here matter because those are the ones that are going to determine the commercial opportunity, are we really in time to develop this?", he raised.
For Monroy, the big problem with the use of lithium in Mexico is that the laws are designed to delay that progress. Our country has to develop technology for mining, a situation that will be difficult to achieve if the nation does not associate with private companies. In addition, its exploitation is extremely expensive: in Chile a single lithium mining project had a cost of 10 billion dollars.
https://www.lapoliticaonline.com/mexico/politica-mx/mexico-ante-la-oportunidad-de-perder-las-bondades-del-litio/
Agreed, as long as they don't fall for the old Yangibana rope a dope ;-)
Absolutely, but Ganfeng we’re also looking for “Strategic Investment” in Sonora let’s see how it plays out. Any of the possibilities seem positive overall for KDNC going forward.
The 'rumour' was them buying out the existing additional rights. Suggests anything not in the 'old' mine plan. So San Gabriel, Buenavista or Megalit IMO.
Whilst I agree they may want to exploit Ganfengs expertise, (they may already have secured it by not challenging or taking back the current concessions) but the Mexican Govt is trying to get bilateral agreements with Bolivia and Chile regarding Lithium extraction and production.
Sure, I was meaning they will want to have a stake in the project as reported by BN Americas. They have already accepted they can’t nationalise any licenses that are granted if they are explicitly for lithium. There is nothing they can do about it without causing international disputes, buying a stake is a great way to look like he’s delivering on his promises (nationalist agenda) and taking no risk because they don’t have the expertise so can rely on Ganfeng.
This also allows them near term success rather than being several years out.
You used their 'nationalist agenda' which would imply taking back control or buying something outright from a private company.....'nationalisation'.
I just can't see a nationalist agenda being satisfied by Mexico becoming a minority JV partner to the Chinese.
They will want near term production and the partnership with Ganfeng is the only way to achieve that.
P.s I didn’t say nationalisation
That's not nationalisation though, that's buying into a private company lol, (may as well buy shares in Ganfeng).
IMO there's been a reason the government haven't been forthcoming in granting title rights for the Megalit concession, this could be it!
That’s promising, the only way they can take it back is to buy it. It would be a win win from all sides if they buy us out and satisfies their nationalist agenda and as a minority they can let Ganfeng do all of the hard bits while they build up their own capabilities.