https://www.reuters.com/article/ganfeng-lithium-mali-mine/chinas-ganfeng-to-pay-130-mln-for-stake-in-mali-lithium-mine-idUSL2N2NW0MR
“Ganfeng, which has projects in China, Canada, Australia, Argentina and Ireland, . . .”
But not Mexico?
Your infatuation does not require my participation.
“Without a single gram mined, Mexican lithium is already a juicy business for foreign investors. In the past 12 months, the English mining company Bacanora Lithium, owner of the deposit located in Sonora, has increased its market value by approximately 170 million dollars, an amount that will reach more than 220 million if its sale to the Chinese firm Gangfeng Lithium is completed.”
https://www.jornada.com.mx/notas/2021/06/13/economia/la-minera-inglesa-bacanora-ha-ganado-170-mdd-sin-extraer-un-gramo-de-litio/
“A source with knowledge of the Bacanora project in Sonora, who asked not to be cited, stressed that its plan is unfeasible, since it is a clay deposit, the concentration of lithium is very low, therefore, its extraction requires a large amount of energy, and at the moment there is no technology in the world that allows it to be carried out profitably.”
I hope he’s wrong because I own other clay mining projects. I suspect that the Chinese have figured out their lab method of roasting it like coffee might work in a lab but won’t work on an industrial scale. No one here wants to talk about chemistry, though, they just want to make personal attacks.
It doesn't say Tesla tried to buy BCN. It says they tried to buy the neighbor (who seems to admit to piggybacking on the research and publicity for BCN).
Their claims are surrounded by BCN's, who along with Tesla are said to have tried to buy them out. “Bacanora Lithium surrounds us in two lots.”
June 10, Forbes Mexico:
Chairman of the Board of Directors and founder of Mine Crons, revealed that Bacanora Lithium, Tesla Mine and European automakers have made a series of offers to buy two lithium mines found in the Sierra de Sonora.
https://www.forbes.com.mx/bacanora-lithium-y-tesla-mine-han-ofertado-por-dos-minas-de-litio-mine-crons/
The La Ventana concession accounts for 88% of the mined ore feed in the Sonora Feasibility Study.
I find it interesting that Secker is a reliable source when you need him.
Does anyone here have the source for recent claims that the BCN projected annual production of 35,000 tons per annum can be scaled to 100,000 tons? It’s optimistic to assume the infrastructure could support even the Stage 1 output of 17,500 t/p/a.
The Ausenco technical report from January 2018 states:
“The mine production schedule is based on a 7 day per week schedule, with two 12 hour shifts per day once Stage 2 is operational in Year 5.” So triple the staff? Where do they live? “Modular, ‘camp style’ accommodation is proposed in close proximity to the project site to facilitate construction and operations for Stage 1. The Stage 1 construction camp will be retained into operations and provide accommodation for operations staff. As operations progress through Stage 1 it is assumed that operations staff (local) will be progressively housed in Bacadéhuachi. It is anticipated that the project will stimulate development of housing and accommodation in Bacadéhuachi by increased economic activity in the area so that when Stage 2 construction commences the camp can be re-tasked once more, after minor refurbishment, as a construction camp for Stage 2, with the majority of the Stage 1 operations staff commuting from Bacadéhuachi.”
Oh, by the way. We don’t yet have a place to build the camp. “ Only expatriates and key staff will make use of the on-site accommodation. Existing lease boundaries need extending to include the proposed camp location.”
The population of that nearby town is not much more than 1,000. Even if miners find housing, and a place to eat, the water supply is uncertain.
But that part of North America is dotted with ghost towns where once thousands of people lived. The real question is, how soon will the lithium be mined out? Despite fantasies about how there is enough to last for centuries, the technical report assumes a useful life of 19 years.
“The Project consists of an open pit mine and an associated processing facility along with onsite and off-site infrastructure to support the operation with a mine life of 19 years.” There are additional reserves and resources that could extend it beyond 19 years, but the technical analysis doesn’t count those unhatched eggs. Let’s say production is tripled. That means the plan is played out in six years. Is that realistic?
Excuse my sobriety on what’s a Saturday night for me, but I find a certain fascination in such questions that, if not intoxicating, is at least intellectually stimulating.
And then there was this Reuters news item in March 2019:
LIMA (Reuters) - Southern Copper Corp, one of the world’s biggest copper producers, is considering an investment in a lithium project in Mexico that has also attracted interest from a Chinese firm, the company’s chief executive told Reuters on Wednesday. Oscar Gonzalez said company officials visited the lithium project in the state of Sonora, Mexico, although he could not recall the name of the Canadian miner he said was “trying to sell it.”
https://www.reuters.com/article/us-peru-southern-copper/southern-copper-eyes-lithium-project-in-mexico-ceo-idUSKCN1QU36X
If there were any money to be made in Sonora lithium, it’s likely that NYSE-traded Southern Copper Corporation would be interested. If you want to fantasize about a white knight, you can imagine they are waiting in the wings. If you believe Ganfeng made its offer as a defensive move to prevent some other company from acquiring more than 50%, it’s not unreasonable to wonder if they were looking over their shoulder at SCCO.
It’s a $52 billion company headquartered in Arizona, a day’s drive from Bacanora and with operating mines even closer in Sonora. About 89% of it is owned by Mexican mining conglomerate Grupo México, headquartered in Mexico City.
Southern Copper is the world's largest publicly traded copper mining company and the world's seventh largest copper mining company. In addition, the firm is the eighth largest copper smelting company. The firm ranks among the world's largest producers of molybdenum, silver, and zinc.
Their lack of interest in BCN so far speaks volumes. But the game is not over. I saw a headline today, from a story blocked from non-subscribers, about Mexican interest in buying Bacanora being a false rumor. I am not trying to advance such a rumor. I just wish there were a place for some intelligent discussion about alternative buyers for BCN.
Sound familiar? Ganfeng Lithium has exercised its project participation right to acquire a 35% interest in the Sal de la Puna (SDLP) lithium brine project, in Argentina, Arena Minerals reported on Thursday. The project covers 11,000 hectares of the Pastos Grandes basin. The Chinese lithium producer will fund $7.79 million of the acquisition costs.
https://www.mining.com/ganfeng-lithium-exercises-participation-right-in-sal-de-la-puna/
Arena was selling for 3 US cents in January. Now it’s up to 13 cents!
Speaking of which -- Ganfeng Lithium, one of the world's top lithium producers, said on Friday it would sell around HK$4.9-billion ($630-million) in new shares to boost capacity and fund potential investments.
https://www.miningweekly.com/article/chinas-ganfeng-lithium-to-sell-630m-of-shares-to-fund-expansion-2021-06-11
The market won't support a price higher than 59p for BCN but Ganfeng hopes it will support raising funds to buy BCN.
Market domination is as British as fish and chips. In 1773, the Tea Act was passed and granted the British East India Company a monopoly on tea sales in the American colonies. Ultimately, though, the colonizers become victims of their greed. Where does China get much of its lithium? From Australia. Why can’t the Australians process their own spodumene? Because they still have the colonial mentality and the Chinese moved in when British investors failed to recognize opportunity.
Australia mines (but does not process) three times as much lithium as Chile, which mines twice as much as China. It’s just nonsense to claim the Chinese control lithium. They control for now its refining and manufacturing into the items you gladly buy for your home. Lithium is everywhere, and it can be turned into products anywhere whenever capitalists want.
Isn’t that just like the Telegraph to be at least a few weeks behind the BBC, Sky News, Channel 4, National Geographic and others in discovering lithium in Cornwall? I’m surprised that they didn’t add a reference to Sonora, where Cornish miners were imported more than a century ago because of their expertise. That would give the broadsheet a reason to use once again that photo of the Mexican lab technicians outside the Hermosillo industrial park where they were trying to figure out what do do with Bacanora clay.
If your friend favors holding until the 67.5p is paid out, I’m with her.
Years away from implementation? Of course? Cost effective? You have better data?
"The researchers estimate that the cell would need only US$5 of electricity to extract 1 kilogram of lithium from seawater. The value of hydrogen and chlorine produced by the cell would more than offset this cost, and residual seawater could also be used in desalination plants to provide freshwater."
https://www.eurekalert.org/pub_releases/2021-06/kauo-ech060321.php
Another getting attention is filtration from sea water. Quite appropriate they are meeting on the Atlantic coast.
The richest person in Latin America is from Mexico and has a net worth of about $70 billion. If his conglomerate isn't interested in lithium mining, he and you must have a different opinion of Bacanora's worth. A handful of small investors can't outbid Ganfeng. You are spinning your wheels until you locate a white knight.
@Fozdog writes, " the AGM - Its 30th June so that is post a likely firm offer "
It's pre-expiration of the extension, and there are two reasons that was allowed. First was the Ganfeng shareholder meeting, which is June 28. The second was Chinese government approval. Didn't that take at least two months, from the time the February share increase was announced until the April transaction occurred?
LAC is a much bigger company and has the advantage of a joint venture arrangement with Ganfeng in Argentina. Their disadvantage is an environmental concern involving Nevada wildflowers. I'm not sure if LIACF (American Lithium) is available to British investors, but I see it with greater potential. Both companies have Nevada clay deposits and are working on processes that do not involve heat. If you will recall, back in September Elon Musk announced acquisition of mining rights to some Nevada clay property, at an undisclosed location, where lithium could be extracted using NaCl and water, no roasting.
American Lithium recently acquired Plateau, with Peruvian interests in lithium and uranium. It plans to offload the uranium properties. The price has dropped because of nervous investors concerned about the cliffhanger Peruvian election, so it may be a good time to buy more.
I have no difficulty buying BCLMF on the OTC market in the US -- just have to pay an additional commission for a foreign trade. Same with Ganfeng, aka GNENF. I haven't been around long enough to figure out why they moved from the Canadian market, which is teeming with microcap undeveloped mining stocks, to the British market. Anyone know of any other examples of that, or the reason given at the time? Maybe they saw more future in the European sources (both minerals and capital) and planned to unload Mexico to the Chinese all along.
"“will not deal with any matters pertaining to the possible offer.... a question-and-answer session on any other matters”
Clear to me that they won't take questions about the takeover. But go ahead and try.