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Given the alleged behaviour of officials improperly influencing outcomes is it more likely that they will treat the action with a healthy degree of scepticism?
“ During the first days of the investigation, the Portuguese Public Prosecutor's Office made a mistake that has since dogged their case.
They admitted that they had confused the Minister of Economy, António Costa Silva, with the country's Prime Minister, António Costa, in a transcript of wiretaps in the corruption case.”
Could you make it up?
The Portuguese legal system appears to tar everyone with the same brush then wait to see who cleans up and who doesn’t?
If that’s all they can come up with I don’t think there is much to worry about?
I don’t think there is any doubt that SAV management will be earning their money in the coming weeks. The most pressing issue will be the court action to try to shut down further activity and then to cooperate with any investigation. This will all be an unwelcome draw on management time from the previous focus on partnership funding. This isn’t going to be resolved overnight - it will take time to restore investor confidence in Portugal as a mining jurisdiction. Can’t see any further statement from SAV having much effect at this stage. I plan to hold, await events and support the company through these difficult times.
I am definitely not offering advice but in general when I don’t know what to do about an investment I find that doing nothing is usually the best (and cheapest) option.
If it does it will be an opportunity for you and me to buy some more?
I understand that mud sticks when it is flying about however I believe that SAV’s appproval will be viewed as the benchmark of due process, procedure and propriety against which other projects will be judged. It’s business as usual at SAV, there are no new hurdles for us to jump following the news and I see no reason for concern over meeting the current project objectives.
Potential mining investors are used to “corruption risk” which is unfortunately to be expected across all the new net zero projects requiring permitting by government officials. See this article for context https://www.pinsentmasons.com/out-law/analysis/the-link-between-the-energy-transition-and-corruption-risk-in-mining
Phew! Looks like we’ve dodged the bullet, at least for now? We are very, very lucky that we are not awaiting government decisions as this scandal will likely paralyse the current administration.
Just the personal musings of a colleague, posted for your amusement. Not meant to be taken seriously! :)
Seems like there’s more than range anxiety according to a colleague of mine in the US.…
.some of the negative aspects of owning an electric vehicle (price anxiety, range anxiety, vapor-cloud battery explosion anxiety, battery fire anxiety, repair cost anxiety, battery life anxiety, loss of vehicle control anxiety, vehicle lock-out anxiety, charging station location anxiety, charging time anxiety, etc.). And new ones keep popping up every day. In the latest hurricane in Florida (Idalia), exposing an EV to salt water in a flood caused battery combustion.
EV sales are still growing (despite all the anxieties), but one look at U.S. EV sales in the first half of 2023 show bigger problems. It seems that the “innovators" and most of the “early adopters” that can afford an expensive EV already have one .The “early majority” phase is stalling and EVs are piling- up on dealer lots, just waiting to inflict all the anxieties mentioned on its new owner. The carmaker’s solution is to cut prices (a price war) to move those cars and lose even more money on each EV. Except for Tesla and the Chinese EV companies, the other automakers lose about $7,000 or more on each EV they sell. They can trade margins for market share right up to the point where they file for bankruptcy (like Lordstown Motors did in June). In the midst of all this, the UAW (United Auto Workers) went on strike for better pay and benefits.
In July, a cargo ship carrying 3,784 new cars (with 498 EVs onboard), from Bremerhaven, Germany to Singapore, caught fire and burned for a week near the shipping lanes off the Dutch coast. Back in February 2022, another cargo ship carrying 3,965 new expensive luxury cars (with 281 EVs onboard), left Emden, Germany for Rhode Island. It caught fire and burned for 13 days before it sank near the Azores. EV batteries are the primary suspected cause in both fires. So, add “shipping anxiety” to the list. If you order a nice new expensive foreign EV, there is a good chance it will end up at the bottom of the ocean.
It costs more to charge an EV than to fuel-up a gas-powered vehicle, when considering the cost of registering the vehicle and the home charging equipment. Gas taxes pay for the roads, and collecting what an EV would have paid in gas taxes up front, in the registration fees, is coming to EV owners. A home charger installation will cost you $2,500 or more depending on where you live. So, put this one under “ownership cost anxiety.”
If your EV breaks down, you may have to wait days or weeks to get it fixed. Seems there is a shortage of EV technicians and the independent auto repair shops will not spend thousands of dollars for special EV maintenance equipment yet. Additionally, EV’s run on 400 to 800 Volt electrical systems, so independent shops are not as enthusiastic about getting their employees electrocuted at the dealerships. This situation fits nicely under “repair anxiety.” I could go on and on, but I do not want to b
A good place to start seeking institutional investors may well be Blackrock who clearly believe that more money needs to flow into miners supporting the green transition?
https://www.ft.com/content/12b3a717-8d54-4542-8d5e-8124568f6974
I wonder if Portugal Resident see the irony in bemoaning the demise of an environmentally questionable industry and welcoming the intervention of a British Company to provide continuing employment? Fast forward 20 years and they could well be reporting the loss of lithium mining in Barosso as a crime against country , workers and taxpayers?
We have had the consultation period so further discussion of the pros and cons of impact on the community and what they should or shouldn’t be thinking is largely pointless. We are not waiting for environmental approval - we have it.
Sure there will be protests up to and beyond the time when mining starts but the ball is rolling towards production and only principally commercial and financial matters are hurdles to be negotiated ahead.
You’re preaching to the converted here Oscar! :)
I note that Fortescue is also experiencing the wrath of a local council, in this case in Valpaços!
https://www.portugalresident.com/valpacos-town-council-wholeheartedly-rejects-lithium-mine-project/
Seems to be being manipulated up at the moment?
Yes, the words on responsible sourcing chime with SAV’s promises in the EIA document. Will get excited only when the off-take contract arrives though!
Good find IB! The presentation is very polished and aspirational but low on content - draws a veil over what they may be doing and when and what materials may be needed. However all moving in the right direction!
There are some voices of reason… but are they being heard?
https://www.theportugalnews.com/news/2023-09-26/the-strategic-importance-of-lithium-and-rare-earth-elements-in-the-energy-transition/81691