The latest Investing Matters Podcast episode with London Stock Exchange Group's Chris Mayo has just been released. Listen here.
And A_L.O is doing as expected by a desperate narcissist trying to protect his legacy with less than a year remaining in power.
https://www.bnnbloomberg.ca/mexican-stocks-set-for-worst-week-of-2023-on-amlo-worries-1.1981325
Mexican stocks fell for a second day after an unexpected change to airports’ concessions agreements stoked concerns that the administration of President Andres Manuel Lopez Obrador was taking a more aggressive stance against business interests as he heads for his final year in office.
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AMLO’s administration has had a largely enigmatic approach to the business community, with a surge in foreign investment being punctuated by moves such as seizing a stretch of rail line owned by a billionaire businessman and ordering the cancellation of ongoing projects including an airport and a beer plant.
@MB,
lithium prices declining could mean less interest in high risk projects, I think the Mex gov have made Sonora high risk, as for the border wall, I do believe that's something the Mex gov could use a a bargaining tool to get US investment, it's being used by the republicans at every opportunity along with fentanyl. A real thornin Biden's side and the building of a wall was something he didn't back so an about turn - although it appears Mex have refused for now!
You have to wonder how L1tioMX can achieve anything with the budget they have that only covers admin costs?
Last week: worth a read!
https://www.state.gov/secretary-antony-j-blinken-with-mexican-foreign-secretary-alicia-barcena-secretary-of-commerce-gina-raimondo-mexican-secretary-of-economy-raquel-buenrostro-and-u-s-trade-representative-katherine/
ECONOMY SECRETARY BUENROSTRO: (Via interpreter) Can you hear me? Good afternoon, everyone. Undoubtedly, this high-level dialogue was very fruitful, very cordial, and we have lots of expectations vis-à-vis the future.
We are working together to turn North America into a – the most important place for the integration of supply chains pertaining to several strategic sectors, so as to guarantee that supply is – supply chains are not disrupted. Amongst these, we have what has to do with electric vehicles, medical supplies, and one of the main elements: the issue of semiconductors.
And of course, Raquel Buenrostro is involved with the Ganfeng negotiations:
"Lithium belongs to the nation, it belongs to Mexicans, but there is a company that had some exploratory work in a very small, very limited area, so we're trying to reach an agreement with them to avoid starting a legal process – an agreement, a conciliation," AMLO said in his morning press conference.
He added that minister of economy Raquel Buenrostro is in charge of the negotiations with the CEO of the lithium company, which he did not name.
Probably the biggest challenge Joe Biden faces against the Republicans and a 180 deg change in his border policy
AMLO reveals that today he will analyze the proposal to build a border wall with the US
https://www.infobae.com/mexico/2023/10/05/amlo-revela-que-hoy-analizara-propuesta-de-construir-muro-fronterizo-con-eeuu/
In his morning conference today, the president recalled that today he will meet with the Secretary of State of the United States, Antony Blinken, along with other US and Mexican officials, with whom they will mainly talk about development and migration
Yesterday, the US government, led by Joe Biden, announced that it was waiving 26 federal laws in South Texas to allow construction of the border wall, marking the administration's first use of broad, often-employed Executive Branch during the Trump presidency.
The Department of Homeland Security published the announcement in the US Federal Register with few details describing the construction in Starr County, Texas, which is part of a busy Border Patrol sector seeing a “high level of illegal entry.” ”.
What's the deal - I wonder!
And now lithium prices are declining that might see interest wane or investments becoming more risk adverse, could already be that is the case with the tax incentives they are offering.
lol, they couldn't get Da luna battery plant off the ground.
Yes @Zoom56,
he has certainly used the military to get his own way as well as unconstitutional voting tactics - one to keep an eye on is the supreme court being stripped of their power or manipulated .
https://www.bnamericas.com/en/news/mexico-govt-slows-down-supreme-court-discussion-on-energy-reforms
The governor of Sonora, Alfonso Durazo, announced that next Thursday, October 5 at 12:00 p.m., he will meet with the president of Mexico, Andrés Manuel López Obrador, to see progress on the Sonora Sustainable Energy Plan.
The state president pointed out that at the meeting López Obrador will also be updated on various pending issues of great relevance to the entity.
I can imagine the conversation:
Q: How's the $600bn lithium industry progressing?
A: Well I think it's going nowhere fast - don't you mean the $200bn lithium industry?
Q: Did the Taiwanese like the cultural piece you presented?
A: yes, they loved it a true work of Mexican art, not a bad investment worth every cent of that 10 million Pesos.
Edith Blanc agreed to make an engraving of a Yaqui dancer , along with the 28 prints in the series. She received only 1,500 pesos, despite the rush, but the artist says that the official's mother did not allow her to put her signature. Those who went to collect the work were government personnel.
Furthermore, Karla Encinas deceived her: she told her that the engravings were for a work by her daughter, Karla Paulina Ocaña Encinas , but they were for the governor, and in addition, she repeatedly refused to let Edith Blanco put her
signature.
https://www.m-x.com.mx/al-dia/alfonso-durazo-obsequia-a-empresario-taiwanes-una-obra-de-arte-plagiada
“I gave an engraving of the Yaqui dancer to Kevin Chou Shih, president of Shih Hsiang Auto Parts . He has already visited Sonora but we wanted to bring him a little piece of our extraordinary culture. We hope to see you there soon.”
In the recording from Taiwan a signature is seen, but it is not possible to distinguish whose signature. The artist only knows that it is not hers, because they did not let her sign it.
I bet that went into his expenses at 1,500 Pesos £85
LOL - I hope Gfeng have all the paper trails for the investments.
Cancellation of lithium concessions sends negative message, warns IP
https://www.elsoldemexico.com.mx/finanzas/cancelacion-de-concesiones-de-litio-envia-mensaje-negativo-advierte-ip-10792788.html
The cancellation of concessions to the mining company Ganfeng Lithium for the exploitation of lithium in Sonora by the Federal Government sends a negative message to foreign investors by showing that there is no security in the region or in the country for the arrival of companies, said Arturo Fernández Díaz González, president of Sonora Global.
In an interview for El Sol de Hermosillo, he said that, although the state government tries to sell the great business opportunities that exist in the region, such as lithium extraction, the reality is different.
Https://www.chinatrademonitor.com/ganfeng-lithium-investment-in-mexico-international-arbitration/
A publication specializing in news about investment arbitration has reported that litigation over Chinese investments in Mexican lithium mining might be in the works after the Mexican government cancelled concessions held by a Chinese company's Mexican subsidiaries.
I see they have started to populate their website:
https://evergreenlithium.com.au/
RIGHT ADDRESS
RIGHT TEAM
RIGHT COMMODITY
https://evergreenlithium.com.au/bynoe-lithium-project/
EverGreen’s Bynoe is located in the Northern Territory, contiguous to Core Lithium’s (ASX:CXO) high grade Finniss lithium Pegmatite Project. Bynoe is located 13km from Darwin, 80km by sealed road from Darwin Port (the Australian port closest to China), within 10km of rail, and close to power and all other essential infrastructure.
Number 4 global sales (0.1 points from number 3) in August surpassing Ford -- that is the Chinese BYD!
https://carnewschina.com/2023/09/28/byd-became-the-worlds-fourth-best-selling-car-brand-in-august-surpassing-ford-in-sales/
And you want to upset the Chinese nearshoring - it's not just lithium all the other aspects of EV battery production and specialists chemicals are circa 80% Chinese.
“We are reviewing them because mining concessions were initially handed over for the exploitation of gold, silver and copper, not lithium,” he said. “We have decided that lithium belongs to the nation because it’s a strategic mineral.”
Lopez Obrador added there was a legal review related to Ganfeng’s acquisition of its lithium concessions in the northern state of Sonora from the previous holder.
The head of Mexico’s mining chamber on Wednesday said he did not believe the government could legally cancel the Ganfeng concessions.
Ganfeng said one of the canceled concessions concerned its open-pit project in Sonora, which it estimated contains some 8.82 million metric tons of lithium carbonate equivalent.
Mexico has been looking to profit from soaring demand for the white metal used in batteries and electric vehicles. However, much of its lithium reserves are trapped in clay deposits, making extraction difficult.
Deja vous - last years challenges - I'm also of the opinion these tactics are to force Ganfeng into a deal not to their liking.
Odd, this was an earlier tactic but appears in todays news!
“We are reviewing them because mining concessions were initially handed over for the exploitation of gold, silver and copper, not lithium,” he said. “We have decided that lithium belongs to the nation because it’s a strategic mineral.”
https://www.reuters.com/article/mexico-lithium-ganfeng/update-1-mexico-says-lithium-concessions-under-review-after-ganfeng-flags-cancellations-idUKL1N3B41ZQ
Durazo didn't get to visit China as reported earlier in September.
Https://www.bnamericas.com/en/news/supreme-court-to-review-amlos-electric-power-reform
Mexico’s supreme court could declare the 2021 amendments to the electric power industry law (LIE), which prioritized the electric power dispatch of public utility CFE, unconstitutional this week.
Supreme court judge Javier Laynez has advocated for ratifying an injunction (shield) issued by a district judge, which sided with six renewable energy firms against the reform, in a hearing scheduled for Wednesday in the court's second chamber in charge of labor and administrative matters.
Well that would be interesting:
She added that the core of the argument is that the State does not have “the freedom to impose restrictions that violate the constitution.”
It would give me some confidence that the courts have the clout needed to do similar with the mining reforms!
Have a read!
Posted last week,
Https://www.bnamericas.com/en/news/mexico-urged-to-boost-mineral-exploration-to-supply-the-energy-transition
CanCham’s Ortega said it is “very regrettable” that the new mining reform reserves mineral exploration for the State through geology bureau SGM, and includes new obligations, causes for the cancellation of concessions and even new mining crimes. However, Ortega, who is a lawyer, believes that the constitutional complaint filed by the chamber of deputies against the mining reform “will triumph” at some point next year, and lead it to collapse.
Armando Ortega, President, CANCHAM’s Mining Task Force
Https://www.tribuna.com.mx/sonora/2023/9/26/amlo-arrebata-el-litio-sonorense-los-chinos-gobierno-federal-cancelo-las-concesiones-345993.html
For now little is known and everything has been through the company, since the federal authorities have refused to give their version. What is known is that the case will end up in local courts, since international bodies cannot intervene in the absence of a free trade agreement between nations.
Durazo doing the rounds in Taiwan, no mention of China as was said to be planned earlier this month - could be some friction!
Foxconn?
"Our interest in Foxconn is in establishing semiconductor plants, and also, eventually, factories of some or all the stages of e-mobility," added Durazo, **who is only visiting Taiwan on this overseas trip**
https://www.reuters.com/world/americas/mexico-eyes-us-energy-exports-solar-farm-chip-supply-chain-role-2023-09-26/
Certainly appears to be cap in hand for lithium investment - I'm sure Ganfeng will be amused!
I'm not sure any foreign company would have confidence in dealing with the current Mex gov in Sonora.