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Evening all. Tried to refind an article I recently read but couldnt for the life of me find again. Anyway it said that Codelco were currently in discussions with the Ecuatorian gov about "investing in Imbabura". llurumagua? lunin/Intag? or could it be Cascabel? Interesting and fascinating if true. Did anyone else see the article?
GLA
DK
DK it’s nothing to do with cascabel.
www.mining-technology. C O M/news/chile-ecuador-llurimagua/
Change . C O M to .com
Ecuador and Chile have resumed talks over the development of the Llurimagua copper-molybdenum project in the Andean region of Imbabura, Ecuador, following years of deadlock, reported Bloomberg News.
Located 80km north-east of Ecuador’s capital city Quito, the 982Mt Llurimagua project is in the advanced exploration stage.
The move comes as demand is anticipated to increase for copper in a clean-energy transition and as Ecuadorian President Guillermo Lasso intends to develop its mining industry.
Now it’s time for a coffee. It’s 6am here.
Majors are flocking to Ecuador due to lefty controls across most South American commodity regions. It's all volatile and risky. Ecuador is at the moment the place to be. The recent lefty win in Colombia has threatened to close down oil producing fields! Might just be leverage ahead of higher tax rate talks or if true to the word, then you can see a lot of oil companies moving across the border to Ecuador. Lasso must seize this opportunity. But majors are risk off entities and know that Lasso's term is currently 4 years. So Come April 2025, a lefty could be in and rip up all the good international work Lasso has done. That's why recently Lasso has been doing more 'legal frameworks' which are much harder for a new gov to overturn as take years through the courts and ironically by the time they get to a legal conclusion, it's 5 years later and new pro business gov come in again. Not plain sailing but all the work lasso is doing at present is seriously underlining Alpala and SOLG's assets. It's adding mega buck value. Some might grumble about the time Nick Mather and his team have taken over this exploration project. But buying time looks like the right move as the background is so much better now both in metal price forecasts, green policies, global electrification and New pro business Government. The recent push to see majors exit Russian and surrounding regions is just the cream on the cake.
Fort, I agree with much of what you say, however, as we approach 2025 the element of political risk ,which, as we know, has been significantly mitigated by Lasso, will return.
We were hugely held back by the previous uncertainty and it could easily repeat itself. For me, this suggests we are currently in a sweet spot and our board should maximise the opportunity by selling Alpala asap.
All of us breathed a sigh of relief when Lasso was elected and I have no wish to run the risk of a far left candidate winning the next election, which seems to me quite likely. Why do I say this? Because Ecuador will be subject to the same economic woes as the rest of us times 10, and in these circumstances the electorate could easily be swayed by the usual left wing rhetoric.
I am certain none of this has escaped our board.
Better hope Lasso survives what's happening in Quito now then.
In relation to Lasso surviving according to this article some are trying to have him impeached. However for this to happen 92 assembly members would have to vote for it but only 47 are said to support the measure. So I would suggest he is pretty safe.
https://www.eluniverso.com/noticias/politica/activar-la-destitucion-del-presidente-de-la-republica-guillermo-lasso-desde-la-asamblea-nacional-no-tiene-los-votos-nota/
What’s happening in Quito is not related to mining, the problems are created primarily by fuel prices… Barrick recently signing mem of understanding shows majors are still very much interested in Ecuador..
https://www.ecuadortimes.net/ecuadors-mining-exports-could-grow-23-in-2022/
The protests are surrounding ten demands the 5th demand is related to mining/ oil extraction.
Ok, I hadn’t seen the 10 demands in the reports I have read but looking into it it looks like they have a problem with new mining projects.. should not affect existing projects.. is that how you see it?
There seems to be 3 particularly problematic existing schemes that they are after where clearly the companies did something bad. I don't think it will be a problem for SOLG though.
Thanks for clarifying, shows SOLG’s ethical way of treating their prospects seems to be working.