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Not an expert in Mexican affairs but from what I read …… https://www.reuters.com/world/americas/mexicos-lopez-obrador-orders-ministry-step-up-lithium-nationalization-2023-02-19/
Bit of a problem for the likes of SQM and Albemarle as the Chilean government moves to nationalise its lithium industry? Mexico has already done so. What next one wonders but it must surely enhance the appeal and value of a European mining project?
Hi TB! I think the expression “never let the facts get in the way of a good story” is perhaps the working motto for Portugal Resident?
912 responses were made according to our friends at Portugal Resident. Many more than last time so you could say the public consultation was “well supported”? Bit of a headache for the APA staff to wade through that lot but they did extend the consultation time so that’s hard Manchega. PR still coming out with the same old issues. Would never have believed wolves were so popular in farming communities? Still quoting Steve Emerman and his tailings dam scaremongering. Wonder if they will issue an apology if they ever bother to read the plan and realise there isn’t a tailings dam? No Pulitzers for them I’m afraid?
https://www.portugalresident.com/lithium-wars-residents-call-to-reject-savannah-resources-revised-mine-plans/
Not a problem we should have in Portugal as they seem to shoot anything with feathers!
…….and yet Stellantis is heavily invested?
IB, the market caps are now almost identical -SAV £62m, EMH £65m. Probably a more reliable measure than the SP for relative valuation? Over and above that there will be speculative funds flowing in to SAV to catch any uplift on the EIA determination which will no doubt be gone the same day as the announcement (provided there is sufficient liquidity)?
Does that imply that there will be no production until the road is built? If EU funding is required that will be another decision we will await, no doubt under local protest for disturbing the flora and fauna? So many ifs and buts remain but we seem to be grinding forwards to some sort of conclusion albeit with further environmental caveats.
Apart from a rather cynical “ the PM extolled the country’s ‘wealth in lithium’ (even before it is being mined)”, they were silent. Previously they fell hook, line and sinker for the antis’ assertion that the resource was uneconomic to mine. Maybe now they are beginning to understand that it is a source of national wealth and don’t want to be caught on the losing side of the argument?
I note that Costa is selling Portugal’s lithium reserves hard to South Korea. For once Portugal Resident had very little negative to say about it!
https://www.portugalresident.com/portugals-pm-promotes-largest-lithium-deposits-in-europe-during-visit-to-south-korea/
To be clear by “premium” I’m talking about quality. As I understand, the current method of recycling Li batteries is to shred everything and purifying the resulting “black mass”. This results in expensive processes with low value products. As a result, it costs more to recycle them than to mine more lithium to make a new one. No doubt the recycling technology will improve in cost and quality as it develops.
Im afraid I can’t agree with either of your conclusions Wolster. The Chinese are happy to corner any and all supplies of lithium and would be sniffing around SAV for a an acquisition on the cheap if possible. They have form in doing this.
Lithium recycling is a good and necessary thing. Completes the virtuous circle of use and reduce thereby reducing environmental impacts. It creates value rather than cost in spent batteries. Forecast demand for lithium ( if you believe it) will devour virgin and recycled lithium with no doubt a premium for the first.
Both types of operation are necessary parts of the lithium ecosphere.
No and I watch the Portugal lithium news quite closely! Why is the Portuguese government making such a significant deal with a Chinese company while pretending to be a good European? Clearly not broadcasting it widely?
Another link in the Iberian lithium circular economy? https://www.northernminer.com/news/glencore-to-open-lithium-batteries-recycling-plant-in-spain-and-portugal/1003854054/
Stellantis are the largest shareholder in Vulcan and are also involved with a U.S. geothermal brine play. Don’t think they will see any lithium out of either this decade? Still, looks good in the group ESG report no doubt.
Given that APA has just bent over backwards to extend the public consultation time and SAV is engaging with the public on the new environment plan, it seems in very bad faith that the parish council has relaunched a legal action against us?
Here we go again! The parish council trying to throw sand in the gearbox? Getting desperate now. Only the lawyers will win and the residents of the parish will bear the costs.
Yes good to get the update on the court case and the cash position. Looks like we are funded to start the DFS but not necessarily complete it? Production earliest now H2 2026 - the ten years that people quote to get a mine into production is starting to seem more realistic counting from the Portuguese asset acquisition in May 2017. Looks like I won’t be retiring just yet!
I have to agree with you somewhat in that I don’t think our government or the EU have thought this change through properly. The provision of public charging points is a current issue and as an EV driver I don’t notice it getting any better as the number of EVs on the road is increasing dramatically. On a geopolitical level it feels as if we are playing straight into dependency on China for batteries and surrendering our car industries to it. This is all driven by worthy environmental targets but should these override defence and economic security? Russia and China laughed at our aims to “net zero” our armed forces as Russia destroys the environment in Ukraine and China builds bases on coral reefs. We must look like mugs to them.
Having said that we have gone a bit too far to turn back from electrification and the demand for lithium should remain high although prices for spodumene may continue to fall. I have always thought that the dates for the end of ICE production were “poster targets” to make politicians look good. I forecast that we will end up with a concession for hybrids and synthetic eco fuel burners where the non-Chinese car producers still have some technology advantage.
Apart from a falling spodumene price none of the above makes SAV any less of an opportunity. We offer low cost production so can tolerate lower prices where some projects can’t. When we get through the DIA and have a revised DFS we should be able to clarify this and look more investable.
A couple of days old but just got round to reading it. Focuses on Europes lack of lithium supply undermining the desire to go all-electric. Mentions several projects including Vulcan, Imerys, Jadar, but not SAV. Interesting if rather negative comment from Albemarle:
“The supply problem has been highlighted by the world’s largest lithium producer Albemarle, which has sidelined plans to extract lithium in Europe after failing to find a commercially viable site.
The resources we are aware of in Europe are not high quality and relatively small,” the group’s chief financial officer Scott Tozier told the Financial Times.”
https://www.ft.com/content/154c53aa-5a9a-4004-abf9-2e6e5396dca4