Member Info for jimb2

It would appear the mining law reforms will not apply if Ganfeng challenge them as is being ruled on for other companies and updated today by the Mexican law firm below:

Dear Clients and Friends,

About our publication dated November 6, 2023, titled “First Favorable Ruling in Amparo Proceedings Against Recent Reforms to the Mining Law and Other Related Provisions” we are pleased to inform you that as of today, we have obtained a total of 7 favorable rulings for our clients.

These rulings order the exclusion of the reform from the legal sphere of our clients who have obtained the amparo and protection of the federal courts; therefore, such reforms may not be applied to our clients.

These favorable rulings have been obtained from four states: Chihuahua, Hidalgo, Jalisco, and Sonora. We are currently awaiting the remaining resolutions, which we believe will be issued pursuant to our clients’ interests.

Should you have any questions or comments regarding the foregoing, please do not hesitate to call your usual contact in the Firm.

https://ecrubio.com/ec-rubio-wins-favorable-rulings-in-amparo-actions-against-the-mining-reform/?lang=en

And on the other matter of not meeting the minimum investment, that is being challenged through the reported amparo:

Another legal action taken outside the framework of the Mining Law reform is the amparo promoted by the China-based Ganfeng Lithium, the world's largest lithium producer. In August 2023, the Ministry of Economy (SE) announced the cancellation of nine lithium concessions for Ganfeng Lithium, arguing that the company did not meet the minimum investment requirements necessary to maintain the concessions. In response to the cancellation, the company filed an amparo.

https://mexicobusiness.news/mining/news/mining-companies-have-filed-500-amparos-against-mining-law?tag=ganfeng-lithium

I'm sure we will have some official news from Ganfeng soon.

That's clarified the situation,

Another legal action taken outside the framework of the Mining Law reform is the amparo promoted by the China-based Ganfeng Lithium, the world's largest lithium producer. In August 2023, the Ministry of Economy (SE) announced the cancellation of nine lithium concessions for Ganfeng Lithium, arguing that the company did not meet the minimum investment requirements necessary to maintain the concessions. In response to the cancellation, the company filed an amparo.

https://mexicobusiness.news/mining/news/mining-companies-have-filed-500-amparos-against-mining-law?tag=ganfeng-lithium

That's clarified the situation,

Another legal action taken outside the framework of the Mining Law reform is the amparo promoted by the China-based Ganfeng Lithium, the world's largest lithium producer. In August 2023, the Ministry of Economy (SE) announced the cancellation of nine lithium concessions for Ganfeng Lithium, arguing that the company did not meet the minimum investment requirements necessary to maintain the concessions. In response to the cancellation, the company filed an amparo.

https://mexicobusiness.news/mining/news/mining-companies-have-filed-500-amparos-against-mining-law?tag=ganfeng-lithium

Things might be resolved sooner than some have suggested.

Yes, I agree @tomcat-14 and posted with that thread title on TRR, we don't know if Ganfeng are one of the 7 and if so would the Mexican gov still pursue the cancellation on lack of investment if Ganfeng continue with that dispute in the international arbitration.

A positive development update today, I don't see how this will not apply to the concessions -

Dear Clients and Friends,

About our publication dated November 6, 2023, titled “First Favorable Ruling in Amparo Proceedings Against Recent Reforms to the Mining Law and Other Related Provisions” we are pleased to inform you that as of today, we have obtained a total of 7 favorable rulings for our clients.

These rulings order the exclusion of the reform from the legal sphere of our clients who have obtained the amparo and protection of the federal courts; therefore, such reforms may not be applied to our clients.

These favorable rulings have been obtained from four states: Chihuahua, Hidalgo, Jalisco, and Sonora. We are currently awaiting the remaining resolutions, which we believe will be issued pursuant to our clients’ interests.

Should you have any questions or comments regarding the foregoing, please do not hesitate to call your usual contact in the Firm.

https://ecrubio.com/ec-rubio-wins-favorable-rulings-in-amparo-actions-against-the-mining-reform/?lang=en

And bear in mind the cancellation was said to be for the lack of investment that is being denied by Ganfeng, so a possibility that's all that may be needed to challenge in international arbitration - will the Mexican government chance that if the ruling is applied, of course Ganfeng might be one of the 7!

Maybe we will have a full glass!

Dear Clients and Friends,

About our publication dated November 6, 2023, titled “First Favorable Ruling in Amparo Proceedings Against Recent Reforms to the Mining Law and Other Related Provisions” we are pleased to inform you that as of today, we have obtained a total of 7 favorable rulings for our clients.

These rulings order the exclusion of the reform from the legal sphere of our clients who have obtained the amparo and protection of the federal courts; therefore, such reforms may not be applied to our clients.

These favorable rulings have been obtained from four states: Chihuahua, Hidalgo, Jalisco, and Sonora. We are currently awaiting the remaining resolutions, which we believe will be issued pursuant to our clients’ interests.

Should you have any questions or comments regarding the foregoing, please do not hesitate to call your usual contact in the Firm.

https://ecrubio.com/ec-rubio-wins-favorable-rulings-in-amparo-actions-against-the-mining-reform/?lang=en

I can't recall if this was posted, it was published in early November a week or so before the KDNC RNS with their intent in challenging the Mexican gov over the BIT, it does suggest the amparo ruling sets a precedent as is the view of the law firm.

https://ecrubio.com/first-favorable-ruling-in-constitutional-actions-amparo-lawsuits-filed-by-ec-rubio-against-the-recent-amendments-to-the-mining-law-and-other-related-provisions/?lang=en

As arguments, we asserted a series of violations arisen in the legislative process that led to the contested amendments; the court ruled that such violations resulted in the unconstitutionality and therefore, inapplicability of the amendments. ***This outcome establishes a precedent that we believe may be replicated in the remaining lawsuits filed against the amendments and currently being processed before the Federal Courts***

Remember the Chinese Mexican BIT gives a four-month window for local dispute resolution before Ganfeng can take this to international arbitration and that should be any time now if they decide to do so.

Secker denied the government’s accusations of not complying with minimum investment levels and said the company will take all available legal measures to avoid the cancellation of its concessions. Ganfeng’s legal challenge adds to the current 500 amparos promoted by Mexican and foreign mining companies against the Mining Law reform before the Supreme Court (SCJN), as reported by MBN.

You have to wonder why the lack of investment is the latest challenge after so many changes in reasons from A_L.O such as lithium not being licensed, is this because they realise the mining law reforms will not hold up and out of desperation had to pluck this one out of thin air?

On Oct. 4, 2023, MBN reported that the General Directorate of Mines (DGM) explored the possibility of cancelling Ganfeng Lithium’s concessions due to non-compliance with the minimum investment obligations between 2017 and 2021. As a response, the company said the investment amounts made within that period exceeded the minimum Mexican laws ask for.

So if this is the only hurdle and the precedent applies it shouldn't take much for Ganfeng to prove:

My glass is still half full-on Sonora and its the top half!

Moss

China EV sales, almost hit one million in a month!

https://youtu.be/aN6n87LWFKg?si=cZQGdIrswCymurN_

The cars are getting better the battery tech is already competitive with ICE and improving at a rapid pace.

Https://oec.world/en/profile/bilateral-country/bra/partner/chn

Brazil-China In 2021, Brazil exported $88.3B to China. The main products that Brazil exported to China are Iron Ore ($28.9B), Soybeans ($27.2B), and Crude Petroleum ($14.2B). During the last 26 years the exports of Brazil to China have increased at an annualized rate of 17.6%, from $1.31B in 1995 to $88.3B in 2021.

A justification to be hopeful that nearshoring for local production might be on the cards and anyone interested in investing in Amapa might have the stockpile in sight!

And I too am LOL with my last post subject 'Glass half full or half empty' did in fact produce the response I expected from the poster I expected - PFS ongoing in BP33 fills half a glass to me!!

Plus Core have 260,000t of stock to keep them going for around six months so a wise move with prices down 85% over the year.

Core feeling the squeeze.

https://hotcopper.com.au/threads/ann-strategic-review-update.7789762/

Still if BP33 proves to be the sweet spot it might give EG1 A boost,

The site will be placed in care and maintenance and all construction and infrastructure material delivered to site will be secured until a decision is made to recommence the early works at BP33. Work continues on the BP33 updated feasibility study and the Carlton scoping study.

So EG1 could just sit it out?

Big plans for Ganfeng and Changan, I’m not so sure the Mexican gov has a clue on where the EV industry is heading.

Changan and Xiaomi could be alongside Tesla and BYD in just a few years in the EV top global manufacturers.

https://youtu.be/jEG6XFFAdSs?si=Sejm38baqsNwzKxp

When you consider the Chinese seem to be leaving other Asian countries behind with battery tech with CATL, BYD, Gotion, and Ganfeng having great tech now.

Changan are one of China’s leading brands, they have a well-established history of manufacturing ICE vehicles, DYOR but their EV’s look pretty well up there with the better known brands!

Now, if you want an EV eye opener, the Xiaomi SU7 looks a real threat to some well known high performance cars, it's also built around their own smartphone platform - you know Google and Apple were expected to get into EV's and in the words of Tony Seba "a computer on wheels"

What do you think??

https://www.youtube.com/watch?v=JF8GK4n15zA

Https://www.bbc.com/news/business-67860232

China’s BYD overtakes Tesla's electric car sales in last quarter of 2023

Analysts say BYD owes its growth to its original business - batteries. They are among the most expensive parts of an EV and making them in-house saves BYD a lot of money. Many of BYD's competitors rely on third-party manufacturers for batteries.

BYD's battery business helped to give it flexibility to cut prices sharply at the end of 2023, lifting sales, which jumped by 70% in December alone.

They also own their own mines and produce their own chips, two more to watch Xiaomi and Huawei for newcomers with leading hi-tech companies now building EV’s.

Disruption by the book!

Maxed my holdings sub 5p - last chance?

@tomcat-14,

depends if the banks opt for a one off payment now its been discussed, it could be that anyone looking to finance the project wants he stock in Brazil.

@Bannor,

Nothing to defend, enjoy the rest of the evening polishing your sheriffs badge.

@Bannor

And you are interpreting this from my post?

" this is one of the issues when reading posts it's easy to mislead or be misled .. . the way you've written that is that it's just a matter of time before the banks are paid off in one swoop but don't mention anything about that it is a wish & he 'hopes' we're getting there"

I clearly posted

"but what really gives me some confidence is KM mentioning paying out the banks in one swoop!"

to mention meaning:

to speak about something quickly, giving little detail or using few words

So that implies little detail

I also posted the exact timeline where he 'mentions' paying of the banks in the YT so people can form their own opinion

Also I did say gives me "some confidence" and didn't imply as you have:

"the way you've written that is that it's just a matter of time before the banks are paid off in one swoop"

To suggest that was intentionally to mislead?

@Dallasdaz,

I agree, its more likely interested parties will be riding shotgun but make a move prior to finalising the DFS, and yes similar did happen with Ganfeng and Bacanora.

It's my understanding that the DFS completion is planned by year end 2024 along with the necessary licensing to bring the project to production - that's why I'm suggesting a move will come within the year.

DFS funding of course will have to be in place, but what really gives me some confidence is KM mentioning paying out the banks in one swoop!

https://youtu.be/CjScNlQ51kA?si=eh0dzuE2Cgu1FMpp&t=494

And how will that news be received?

@Dallazdaz,

In the case of BYD they are aggressively expanding production, how appealing might AMAPA appear to them or one of their suppliers?

I'm not sure the DFS would prevent them making an offer, sorry to repeat:

https://www.mining.com/web/byd-looks-to-buy-lithium-assets-in-brazil-in-ev-raw-material-push/

“We prefer to buy any available and affordable resource, but it needs to be competitive. At the same time, BYD also prefers to own some mining operations in Brazil,” Li said at an interview in Sao Paulo.

“We are gonna build up this plant fast,” said Li. “We need to make sure in the future all cars we sell here are 100% produced here. BYD will become like a Brazilian company.”

It's disruption and that means conventional thinking may not always apply, and when I say BYD are aggressive!

BYD calls on China automakers to unite, 'demolish the old' in global push.

https://www.reuters.com/business/autos-transportation/byd-calls-china-automakers-unite-demolish-old-global-push-2023-08-11/

@Dallasdaz,

that's conventional thinking, I'm looking from the perspective of a Chinese company wanting to ramp up production in Brazil, I have used BYD as an example with rapid growth and historic investment in Brazil.

Besides EV's trucks and buses they are a global leader in energy storage and what might surprise some they are strong in Brazil with solar:

Opening to the distributed generation (GD) market

Between 2017 and 2018, BYD provided its products exclusively to large centralized generation projects, with global customers such as the French Engie, the Norwegian Scatec (now Equinor) and the US-listed AES. However, at the end of 2018, BYD began selling its PV modules through industry distributors targeting the distributed generation market. This cooperation was initially with ALDO Solar, and more recently included other industry leaders like Alsol, PHB, WEG, DEMAPE, HCC, Solbras, Handysolar, Engie, among others.

Gustavo Tegon, Sales Manager at BYD Energy Brazil points out that the company, which is already a global leader in the manufacture of solar panels and energy storage systems, is also a setting a benchmark in Brazil. “Following the establishment of the solar panel factory in Campinas, much of the emerging solar market in Brazil has opted for BYD products for their quality, technology and delivery capability. Having reached almost 1/3 of the national market is a proof of our excellence. ”

That stockpile must change the view of any interested party, I would imagine TCIDR could 'model' the Amapa DFS with a degree of certainty based historic data and from the engineering design they have expert experience in, enough for a buyer to make a bid pre DFS on the cheap?

And yes @Zoom56 plenty of other interest in Brazil, in 2021 a third of the total export from Brazil to China was Iron so nearshoring now must be a priority with the scale of manufacturing ramping up in Brazil.

Nearshoring Brazil.

When you consider BYD building truck and bus chassis in Brazil and them being a global energy storage company they must depend heavily on reliable supplies of iron and steel products:

https://www.mining.com/web/byd-looks-to-buy-lithium-assets-in-brazil-in-ev-raw-material-push/

“We prefer to buy any available and affordable resource, but it needs to be competitive. At the same time, BYD also prefers to own some mining operations in Brazil,” Li said at an interview in Sao Paulo.

“We are gonna build up this plant fast,” said Li. “We need to make sure in the future all cars we sell here are 100% produced here. BYD will become like a Brazilian company.”

GLA and HNY,