Member Info for jimb2

Https://mexicobusiness.news/mining/news/minings-great-challenge-legal-certainty

Q: What are the latest developments regarding the Mining Law and what is the most important factor to highlight?

A: Last January, the draft resolution by Mexico’s Supreme Court regarding the unconstitutionality action filed by opposition parties was presented and scheduled for discussion for April 9, we now know this has been rescheduled for the month of May. We hope the Supreme Court will overturn the decree in its entirety, given the multiple irregularities seen during the law’s legislative approval process.

The content police? or you sleep walking?

But you keep coming back to read it, I take it you read or just cast an opinion perhaps,

Well @Ericthered,

that must have been an exhausting day for you dreaming up the encore - it does show the extent of your creativity.

@News,

my view is that either CATL or BYD would be the companies to be providing batteries to Tesla in Mexico, CATL already supply Tesla elsewhere and would be my first choice as it appears by gossip they will be providing model 2 batteries but they have in the past pulled out of plans to build a Mexican plant, BYD are close to announcing a Mexican plant and do provide Tesla elsewhere.

I'm not hopeful that the Morena party will backtrack on A_LO's plans for lithium, although a longshot is that the narcissists will want to have a legacy showing he was responsible for the development of the lithium industry.

Not forgetting GM and Ford are JV's with CATL

https://cnevpost.com/2024/03/29/catl-plans-plant-with-gm-north-america-tech-licensing-report/

GM already works closely with CATL, but that relationship is limited to the China market. The deal reportedly being discussed would bring that partnership to North America in the form of a joint battery plant located in either the U.S. or Mexico, along with a GM license agreement for CATL’s LFP battery tech.

My recollection is that AMLO was vocal at the time expecting Elon Musk to invest in lithium mining in Sonora, again if I recall correctly Mexico could not meet the US subsides being offered whereby the subsidy was greater than the investment so something like for a $1 invested the US gov would give $1.50 - I do recall AMLO giving that as the reason Tesla declined his offer

https://www.theyucatantimes.com/2023/03/lopez-obrador-open-to-musks-participation-in-lithium-plan/

@News,

Given you spoke to OBSERVER842 last wk,

apologies, that may have been confusing when I said

“@Observer842 would have posted with much greater detail than you will find in my posts, I did exchange many views with him - we touched on this a week back, he is certainly missed on here”

I was referring to the exchange of posts with other posters on the fact that @Observer842 no longer posts here.

.

Some studies suggest that people with higher IQs tend to sleep less and later, and are more likely to be night owls. For example, a Northwestern University study called "Night Owls" found that people with higher IQs tend to sleep less, and that the IQ drops by one deviation for each hour of sleep lost. Another study by psychologist Satoshi Kanazawa found that people in their 20s with a normal IQ tended to go to sleep at around 12:10 a.m., while those with a lower IQ went to bed at 11:41 p.m., and those labelled "very bright" hit the sack at 12:29.

Who am I to argue with good research!

There's nothing that should surprise you @News,

I've lived through and experienced the ups and downs of over the last ten years of REM/KDNC as of next month, just need more ups to balance things out!

@Observer842 would have posted with much greater detail than you will find in my posts, I did exchange many views with him - we touched on this a week back, he is certainly missed on here.

@News.

Episode 2

Apr. 13, 2017

Hanwa Co., Ltd. (Registered Head Office: Osaka, Japan ; President: Hironari Furukawa; henceforth “Hanwa”) is hereby delighted to announce its decision on partial capital participation in Bacanora Minerals Ltd. (- TSX-V : BCN & AIM: BCN – the Canadian and London listed; Executive Chairman: Mr. Mark Hohnen; henceforth “BCN”). Hanwa shall acquire off-take up to 100% of the battery grade lithium carbonate produced at Sonora Lithium Project and aim to market it to meet the expected growing demand from Japan and other countries around the world.

1st Stage – 17,500MT Lithium Carbonate (※ LCE) per annum

2nd Stage – 17,500MT LCE per annum

(Totally maximum 35,000MT LCE per annum)

Sonora Lithium project holds outstanding lithium deposits with significantly low amount of impurities, consisting of unique type of ore, so-called, clay, and with the full use of it, Hanwa seeks to establish itself as a new lithium supplier in this fast-growing market and fulfill a stable supply obligation towards our existing and new customers.

End of 2018 – Early 2019　Production commencement

https://www.lse.co.uk/rns/KDNC/bacanora-minerals-update-pnacgc13km033ab.html

Hanwa has committed to assist Bacanora in securing the debt financing component of the funding package required to enable development to commence following completion of the Feasibility Study.

· Preliminary introductions made to date by Hanwa have been positive first steps towards securing such additional future financing requirements.

Commenting, Kiran Morzaria, Chief Executive Officer of Cadence, said:

"This strategic partnership is a pivotal moment in the development of the Sonora lithium project. The off-take agreement for up to 100% of battery grade lithium carbonate, not only validates the production process, but also reduces the risk profile and importantly means that the Project has a strong strategic partner that provides an excellent foundation for project debt financing, construction and production."

If only - I wonder if Hanwa thinks so?

Oh so close,

another $7bn

President Biden announces $7 billion in solar energy grants

@News,

That's why I posted on Thacker Pass and LAC having to raise $275m, Ganfeng were involved heavily in Thacker Pass but when Trump started the rhetoric with China Ganfeng made a beeline for Sonora - if I recall the team flew in from Argentina instead of heading to Nevada - of course between LAC and Ganfeng other projects in Argentina was a means of divesting - LAC with a loan facility to build a processing plant but not a mine?

Ganfeng did a great deal of work on their flowsheet.

Lithium Americas Stock Jumps on $2.26B Conditional Loan From US Department of Energy - that was March 14th and yet they need a cash raise for the mine - as I stated if Mexico thinks the Ganfeng deal is not a good deal!!

Today:

Lithium Americas Closes US$275 Million Underwritten Public Offering

And they are looking 2027 for production, Ganfeng could have been three years ahead in Sonora.

It will take an election with a different party leading IMO - cringe!

In her speech, Sheinbaum also said Pemex could participate in the exploration of lithium, and some renewables production.

In accordance with Article 10 of the BIT, Cadence and REMML have requested consultations and negotiations with Mexico with a view to resolving the dispute amicably. The BIT provides for disputes to be resolved by international arbitration if they cannot be resolved by consultation and negotiation.

Article 10 - does state, the notice of Intent and Consultation as:

An investor that has a dispute with a Contracting Party should first attempt to settle a claim through consultation or negotiation. The investor shall deliver to the Contracting Party written notice of its intention to submit a claim to arbitration at least 90 days before the claim is submitted. Such notice shall specify:

The name and address of the disputing investor and where a claim is made on behalf of an enterprise according to Article 11 of the agreement, the name and address of the enterprise

Also the provisions of this Agreement alleged to have been breached with the factual and legal basis for the claim, plus

remedy sought and the amount of damages claimed.

https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/2009/download

I would like to know the amount of damages in the claim, if the above is correct?

Cadence CEO Kiran Morzaria commented: "The team at Clifford Chance have many years of experience in mining-related investment treaty arbitration, and have successfully resolved similar cases in the past. With their guidance, we are hopeful that a constructive solution can be reached through consultations and negotiations with Mexico under the BIT. "

@News,

I believe this is the agreement:

https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/2009/download

Enforced 25/07/2007 - this link gives the BIT's index

https://investmentpolicy.unctad.org/international-investment-agreements/countries/221/united-kingdom

This Agreement shall remain in force for a period of 10 years. Thereafter it shall continue in force until the expiration of 12 months from the date on which either Contracting Party shall have given written notice of termination to the other. The

provisions shall continue in effect with respect to investments for a period of 15 years after the date of termination and without prejudice to the application thereafter of the rules of general international law.

Barge pole, comes to mind @News

Sheinbaum compared the Mining Law to oil expropriation: “Lithium was rescued for the benefit of the nation”

Once again, the capital's president took the opportunity to describe as “traitors to the country” the opposition deputies who voted against the initiative to make lithium belong to the Mexican people as “traitors to the country”

Xochitl Galvez,

would be in favour of private investment.

@News,

it's not straightforward at all, AMLO is all over the place!

Https://latinus.us/2023/11/16/amlo-invita-a-xi-jinping-a-mexico-para-que-conozca-el-plan-sonora-de-energias-renovables-y-el-corredor-interoceanico/

AMLO invites Xi Jinping to Mexico to learn about the Sonora Plan for renewable energies and the Interoceanic Corridor

At the end of the meeting, held on the sidelines of the Asia-Pacific Economic Cooperation Forum ( APEC ), the Mexican Foreign Ministry reported on social networks that López Obrador invited Xi to visit Mexico to learn about the Sonora Plan for lithium exploitation. and renewable energies, as well as the Interoceanic Corridor project of the Isthmus of Tehuantepec

And Durazo:

https://proyectopuente.com.mx/2024/03/04/gobernador-durazo-sostiene-reuniones-de-trabajo-con-empresarios-en-china/

During the activity on the first day of this visit, the delegation from the Government of Sonora held meetings with directors of Chinese companies that lead industries in the generation of clean energy, as well as with the diplomatic corps that represents Mexico in that nation.

This previously established work agenda will continue its course in the following days by the Government of Sonora together with different levels of government and representatives of the People's Republic of China.

He has done a few overseas trips - I do wonder if a $3bn investment in lithium mining and processing in Sonora isn't that appealing - LOL

Https://www.telematicswire.net/mexico-halts-incentives-for-chinese-ev-makers/

During this meeting, Mexican officials clarified that they would not extend incentives previously awarded to automakers. Furthermore, future meetings with Chinese automakers are on hold. This decision reflects concerns about Chinese automakers accessing the US market through Mexico, potentially circumventing tariffs and other trade barriers.

The move is attributed to pressure from the US government, particularly the Office of the United States Trade Representative (USTR), which aims to prevent Chinese automakers from entering the free trade zone established under the North American Free Trade Agreement (NAFTA).

The Mexican Economy Ministry declined to comment. The office of Mexican President Andres Manuel Lopez Obrador did not immediately respond to a request for comment. A White House spokesperson affirmed President Joe Biden’s stance: Chinese vehicles threatening national security won’t inundate the US market.

They odds are stacked against the MEX GOV, it seems obvious Ganfeng were their best way to having an industry:

Lithium Americas Plunges After Shares Sold at Steep Discount

https://ca.finance.yahoo.com/news/lithium-americas-plunges-shares-sold-133628815.html

I'm not sure how they think they could improve on what Ganfeng have to offer $1bn - $3bn, mine, processing plant and recycling plant - plus they are the world number one lithium metal producer as well as forty lithium compounds in production.

I would say a dead cert battery production would be on the cards now.

The problem is the autocratic narcissist and the way he weakens the judiciary and manipulates legislation:

https://apnews.com/article/mexico-president-projects-rushing-mistakes-lopez-obrador-1d287dc9ebf4872ce7ef9e742a2bc232

On Wednesday, his party pushed through the Senate a law that would prohibit judges from blocking government projects, even if citizens file appeals against them.

Have a read to understand what we are up against, and a typical project AMLO decides will get done and Durazo is implicit.

https://apnews.com/article/mexico-train-environment-climate-rewild-biodiversity-812e0f33dea38eb41220025afdcef2fa

I think the Mex gov under Morena will want to take possession of the Sonora clays for as little as possible, there's no one reason they have given for the Ganfeng and REMM concessions, the mining laws, spend, environmental and the next obstacle will be the open pit mining ban:

Claudia Sheinbaum, a presidential candidate with a clear lead in polls and a member of López Obrador's Morena party, has already made promises to push for the ban.

https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/mexico-s-push-to-ban-open-pit-mining-likely-to-outlast-l-243-pez-obrador-s-term-80738199#:~:text=Indeed%2C%20the%20open%20pit%20mining,recent%20polls%2C%20according%20to%20Reuters.

My view is their plan is to introduce the open pit mining ban and then develop the Sonora open pit mining using the military to circumnavigate any environmental requirements and little exposure to the media - if you look at the projects AMLO has rushed through involving the military.

There's 500 plus Amparo's from mining companies in place!

Whatever happens AMLO has to come out smelling of roses if its within his term if not then Claudia Sheinbaum will only continue under his influence.

I'll take international Arbitration as the Mexican gov seemed determined to miss an opportunity rarely seen in a lifetime to have a robust industry supporting EV's and Storage.

IMHO

If I were the Mex gov, I would take up the Ganfeng offer - even where the grass might seem greener!

https://www.mining-technology.com/news/lithium-americas-thacker-pass-project/?cf-view

Lithium Americas launches $275m offering for Thacker Pass project The company intends to sell 55 million shares at $5 each through the offering.

The commencement of Phase 1 production is targeted by 2027, with the lithium produced expected to qualify electric vehicles for consumer incentives under the US clean energy tax credits programme.

Last month, Lithium Americas secured a conditional commitment for a $2.26bn loan from the US Department of Energy to construct processing facilities at the Thacker Pass mine.

That was all on the table for Sonora and would have been producing by now. Not forgetting Ganfeng were involved with Thacker Pass and took on Sonora, likely due to Trump rhetoric at the time.