Member Info for jimb2

Yes, @MLQ that is popping up on a few news feeds, also A_L.O has a number of projects that are no where near completion that he has announced will be going live in December, simple things like an airline with no planes, a mega pharmacy that can supply anywhere in Mexico within 24hrs for local shortages:

"A state-owned “mega pharmacy” tasked with supplying medications to public hospitals across Mexico will open next month, President López Obrador said Tuesday. His announcement comes three months after he first proposed the creation of a “kind of pharmacy, … a warehouse with all the medicines of the world in reasonable quantities” as a “definitive way out” of the medication shortages that have plagued his government."...

The disturbing thing is his use of the military and circumnavigating the system:

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

Sonora Gov. Alfonso Durazo justified the new rail line project saying it would solve the problem of a rail line that passed through the center of Nogales by diverting rail traffic outside the city.

But while the state is partially financing the project, Durazo said it is “being carried out by the Defense department,” adding that the state’s operational role is limited to helping the Army secure the rights-of-way.

In the face of court challenges and criticism, López Obrador in 2021 passed a law stating the projects of importance to “national security” would not have to submit impact statements until up to a year after they start construction.

Under Mexico’s environmental laws, sidestepping impact assessments ought to be “completely illegal,” said said Alex Olivera, a senior scientist with the Center for Biological Diversity. “But this is AMLO’s government, so probably they will say that it is ‘strategic infrastructure’” like the Maya Train, and therefore exempt.

I'm so glad we have that trade agreement, take our money and run!

Terrible thing that fomo and mixed with a black Friday discount, I didn't find the dishwasher that had the specs I was asked to find.

To be honest I got a little side tracked!

15:12:15 6.264 10,000

14:47:26 6.264 10,000

I'm sure there's another year left in the old one ;-)

Thanks @Mullins58,

all well thanks, and yes TRR is one on my shortlist once we see some movement here, let's hope short term news to come is mutually beneficial for both holders.

@Bannor, I am also conscious of A_L.O's attempts to weaken the courts through defunding and other measures:

https://www.infobae.com/mexico/2023/11/19/no-pasara-senadores-del-pri-iran-en-contra-de-la-terna-de-amlo-para-la-suprema-corte/

“The proposed candidates are not only military personnel with an official political orientation, they do not have a judicial career and there are no conditions of impartiality, so they definitely do not have the characteristics required to integrate the Supreme Court of Justice of the Nation,”

And of course as I recall, the votes for the mining law reforms were done in a dubious fashion - a janitor got to vote along with an unregistered person and the opposition were excluded as the vote was held outside the official chamber!

There are challenges no doubt,

Just found the link:

https://www.reuters.com/world/americas/mexican-senate-expeditiously-approves-set-laws-mining-reform-2023-04-29/

MEXICO CITY, April 29 (Reuters) - The Mexican Senate approved in an express session on Saturday a package of laws including two constitutional reforms and a new mining law rebuked by the mining chamber and Canada.

Representatives of the president's Morena party and its allies, nearly unanimously and with little debate, approved the laws in a fast-tracked process without opposition legislators present. Legislators convened outside the chamber's usual voting location after the opposition occupied the chamber to try to prevent the session

@Bannor,

if the 'others' lined up are prepared to wait 4 or 5 years and that would be to start a possible ten year process?

I too believe there are interested parties and time is not on the side of the Mex gov to get started, plus what will be the fallout with China?

XI only got an invitation, I don't see anything to suggest he accepted and the invite.

Https://www.elsoldehermosillo.com.mx/local/inversionistas-japoneses-visitaran-hermosillo-y-haran-obra-social-11027196.html

“We talked about the Japanese automotive industry in the country, and that now they are interested in coming to Hermosillo, so it will be in January that a delegation from Japan will come to Hermosillo and that will trigger new jobs for the community, so we put the red carpet so that investment arrives not only from Japan but from other parts of the world,” he emphasized.

https://www.elsoldehermosillo.com.mx/local/alfonso-durazo-anuncia-invitacion-de-amlo-al-presidente-de-china-a-sonora-11028272.html

In a report, the company announced that the General Directorate of Mines (DGM) canceled nine concessions in Sonora allegedly because the minimum investments required by law were not made.

In this regard, a month ago the head of the Federal Executive declared that the case of this company's mining concessions is being reviewed after the nationalization of lithium.

For his part, Governor Durazo Montaño mentioned that the situation with Ganfeng Lithium would not affect the development of the Sonora Sustainable Energy Plan because lithium is a national resource by law.

It's going to be interesting when they Taiwanese, Japanese, Europeans and other Chinese companies look to do their DD and see the courts lined up to hear the Cadence and Ganfeng trade disputes on the nationalisation of the concessions - assuming of course that's the areas in question - lithium is not a national resource for the concession areas that 's according to both trade agreements -

Now options are?

Post 1 of 2

I have to admit, I do feel upbeat with the news and events over the last week and that we have a similar trade agreement as the one being pursued by Ganfeng. I was hoping some with a legal background would cast their eyes over and give an opinion.

Still, I do believe there’s little to challenge the claims by Cadence:

In their Request, Cadence and REMML have identified various BIT obligations that have been breached by Mexico, including Mexico's obligation not to unlawfully expropriate the investments of UK investors such as Cadence and REMML and its obligation to treat such investments fairly and equitably.

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.

And importantly the agreement was for at least 25 years from June 2006

ARTICLE 27

Duration and Termination

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.

As far as this being long and drawn out, I would doubt that any foreign investment will be willing to take on investment in the disputed concession?

The links I have found and posted over the last month or so do appear to reflect the corresponding trade agreements but DYOR

Part 2

British / Mexican

ARTICLE 7

Expropriation 1. Investments of investors of either Contracting Party shall not be nationalised or expropriated, either directly or indirectly through measures having effect equivalent to nationalisation or expropriation (“expropriation”) in the territory of the other Contracting Party except for a public purpose, on a non-discriminatory basis, in accordance with due process of law and against compensation.

2. Such compensation shall amount to the fair market value of the expropriated investment immediately before the expropriation or before the subsequent expropriation became public knowledge; shall include interest at a normal commercial rate until the date of payment; shall be made without delay, be effectively realisable and be freely transferable. Valuation criteria shall include the going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine the fair market value.

3. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review, by a judicial or other independent authority of that Contracting Party, of his or its case and of the valuation of his or its investment in accordance with the principles set out in this Article. A

Chinese / Mexican

1. Neither Contracting Party may expropriate or nationalize an investment either directly or indirectly through measures tantamount to expropriation or nationalization (“expropriation”), except

(a) for a public purpose;

(b) on a non-discriminatory basis;

(c) in accordance with due process of law; and (d) on payment of compensation in accordance with paragraph 2 below.

2. Compensation shall:

(a) be equivalent to the fair market value of the expropriated investment immediately before the expropriation occurred. The fair market value shall not reflect any change in value because the intended expropriation had become publicly known earlier;

(b) be paid without delay;

(c) include interest at a commercially reasonable rate, from the date of expropriation until the date of actual payment; and

(d) be fully realizable and freely transferable. 3. Without prejudice to the provisions set forth in Chapter III Section One, an investor whose investment is expropriated, shall have the right to a prompt review of its case by a court or by any other competent authority, pursuant to the applicable laws of the corresponding Contracting Party, and to an assessment of such investment in accordance with the provisions set forth in this Article.

Article 7

British / Mexican

ARTICLE 7

Expropriation 1. Investments of investors of either Contracting Party shall not be nationalised or expropriated, either directly or indirectly through measures having effect equivalent to nationalisation or expropriation (“expropriation”) in the territory of the other Contracting Party except for a public purpose, on a non-discriminatory basis, in accordance with due process of law and against compensation.

2. Such compensation shall amount to the fair market value of the expropriated investment immediately before the expropriation or before the subsequent expropriation became public knowledge; shall include interest at a normal commercial rate until the date of payment; shall be made without delay, be effectively realisable and be freely transferable. Valuation criteria shall include the going concern value, asset value including declared tax value of tangible property, and other criteria, as appropriate, to determine the fair market value.

3. The investor affected shall have a right, under the law of the Contracting Party making the expropriation, to prompt review, by a judicial or other independent authority of that Contracting Party, of his or its case and of the valuation of his or its investment in accordance with the principles set out in this Article. A

Chinese / Mexican

1. Neither Contracting Party may expropriate or nationalize an investment either directly or indirectly through measures tantamount to expropriation or nationalization (“expropriation”), except

(a) for a public purpose;

(b) on a non-discriminatory basis;

(c) in accordance with due process of law; and

(d) on payment of compensation in accordance with paragraph 2 below.

2. Compensation shall:

(a) be equivalent to the fair market value of the expropriated investment immediately before the expropriation occurred. The fair market value shall not reflect any change in value because the intended expropriation had become publicly known earlier;

(b) be paid without delay;

(c) include interest at a commercially reasonable rate, from the date of expropriation until the date of actual payment; and

(d) be fully realizable and freely transferable. 3. Without prejudice to the provisions set forth in Chapter III Section One, an investor whose investment is expropriated, shall have the right to a prompt review of its case by a court or by any other competent authority, pursuant to the applicable

I wouldn't write off Sonora,

KDNC appear to be using a British / Mexican trade agreement that is near identical to the one I believe Ganfeng are:

Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the United Kingdom-Mexico Bilateral Investment Treaty ("BIT").

The Request concerns the purported revocation of the mining concessions for the Sonora Lithium Project (the "Project") by the Mexican General Directorate of Mines as announced by Cadence on 31 August 2023, and related acts and omissions by Mexico. The affected concessions include those granted to Mexilit S.A. de CV ("Mexilit") and Minera Megalit S.A. de CV ("Megalit"), these being joint venture companies in which Cadence holds a 30% stake through REMML.

In their Request, Cadence and REMML have identified various BIT obligations that have been breached by Mexico, including Mexico's obligation not to unlawfully expropriate the investments of UK investors such as Cadence and REMML and its obligation to treat such investments fairly and equitably.

Ganfeng's dispute agreement:

https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/759/download

The agreement Cadence minerals are disputing:

https://assets.publishing.service.gov.uk/media/5a74ba5ae5274a3cb2866b4c/6860.pdf

http://irservices.netbuilder.com/ir/cadence/newsArticle.php?ST=REM&id=311428233803936219

Indeed @Zoom56,

Alfonso has done the rounds peddling the Sonora plan, remember he was in Taiwan end of September and did have a visit planned to meet the Chinese that didn't appear to happen in September.

Posted 25th September

https://www.seaisi.org/details/23473?type=news-rooms

***Mexican officials visited Beijing on 5 September for the Sino-Mexican Business Cooperation Meeting to strengthen the bilateral relationship between the countries. The visiting representatives introduced the perspective of the new energy industry in Mexico and proposed incentive policies to promote NEV collaboration, Kallanish learns from China Industrial Association of Power Sources (CIAPS).

The representatives included Francisco Acuna, chairman of Sustainable Development Committee of Sonora, Mexico, and Sergio Kwiatek, political counsellor of the Mexican Embassy in China. Besides representatives from CIAPS, some representatives of Chinese enterprises including Tianjin Lishen Battery and Jeve Battery also joined discussions on investment and cooperation in the new energy field.

“China is Mexico’s second-largest trading partner in the world. The automobile industry is Mexico’s pillar industry, and China is at the forefront of the world in the development of renewable energy, especially in the fields of NEVs, energy storage and batteries,” adds Acuna. “Mexico pays high attention and hopes the two countries can further strengthen collaborations in these fields as it welcomes Chinese enterprises to invest and construct factories in Mexico.”

****Kwiatek says the governor of Sonora state will visit China later this month to further talk about “related issues.” He did not address the negotiations between Mexico and Ganfeng Lithium, the operator of the Sonora lithium project in northeast Mexico****

The North American government decided to cancel nine lithium mine concessions related to the project following its lithium nationalisation in February. Ganfeng said recently the cancellations aren’t final and that, at this point, it is unclear whether the changes may lead to asset impairment losses and other negative impacts. The company didn’t seem to be involved in this week’s meeting in Beijing.

I wouldn't be discussing that issue if I was him either in the open press.

#####

Now doesn't that make this weeks event interesting, is it that the narcissist realises he has no way of getting the concessions through the courts and wants to create the illusion that he has masterminded the Chinese lithium investment in Sonora directly with XI ?

Just one scenario - you might also wonder if he wants to have XI pressure Ganfeng into relinquishing the concessions for political reasons - if so the KDNC legal move would seem prudent.

Well either way we are now at the negotiating table and Sonora lithium is a high profile lithium mine that’s been a talking point of some pretty important global leaders over the last year.

Well a very interesting week, a great deal of excitement on the back of President Xi being invited to Sonora to see the Sonora Plan including lithium exploitation - yes even Alfonso Durazo is singing A_L.O's praises for inviting Xi to see the investment opportunities for the Chinese.

I'm sure Durazo has visited a lithium pilot processing plant in Sonora owned by a Chinese company with $1bn - 3bn on the table, maybe he just plain forgot.

Intriguing how this plays out for Ganfeng in coming days, and what is behind KDNC making their legal move at this point in time!

Maybe the Mex gov can get underway elsewhere in Mid Mexico:

https://investingnews.com/silver-valley-metals-announces-change-to-board-of-directors-and-provides-corporate-update/

As previously disclosed, discussions are active and advancing with LitioMX, the national lithium Company of Mexico. In person meetings in Mexico City and Hermosillo, Mexico have taken place and follow-up meetings continue. Discussions have advanced and from Silver Valley's viewpoint, the Company and LitioMX are "close" to an agreeable and mutually beneficial conclusion.

Looking forward to see what comes from A_L.O's daily briefings next week or maybe sooner>

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.

?

Https://www.reuters.com/world/us/mexico-china-maintain-mutually-beneficial-relationship-lopez-obrador-says-2023-11-16/

They also agreed to promote trade and investment, she added.

The foreign ministry said in a separate post that Lopez Obrador spoke with Xi about two of his administration's keystone infrastructure projects, a solar energy development in the north of the country and the so-called Interoceanic Corridor to attract business to the south.

Oh well, lets see if anything comes from their talks - Sonora plan did get a mention

Yes, a Slam Dunk,

And a show of confidence employing the top law firm with top dollar fees, you don't do that with losing in mind!

SAN FRANCISCO, Nov. 16 (Xinhua) -- Chinese President Xi Jinping on Thursday called for expanding China-Mexico cooperation in finance, electric vehicles and other emerging industries.

Xi made the remarks when meeting his Mexican counterpart, Andres Manuel Lopez Obrador, on the sidelines of the 30th Asia-Pacific Economic Cooperation (APEC) Economic Leaders' Meeting. He also said that the two sides should make good use of the inter-governmental cooperation mechanism and deepen cooperation in traditional areas such as infrastructure construction

I wonder if they mentioned - LOL

Yes @Zoom56,

I agree settlement will likely be before international arbitration as Ganfeng ruling if it goes that far will probably be sufficient, there's still the courts in Mexico who might make a ruling on Ganfeng and that should land before end of January to keep within the four months.

Just like Ganfeng the process has now started and the RNS wording aligns with the terms of the agreement:

Cadence Minerals (AIM/Aquis: KDNC) advises that the Company and its subsidiary REM Mexico Limited ("REMML") have issued a Request for Consultations and Negotiations ("Request") to the Government of Mexico under the United Kingdom-Mexico Bilateral Investment Treaty ("BIT").

SECTION TWO: SETTLEMENT OF DISPUTES BETWEEN THE

CONTRACTING PARTIES

ARTICLE 21

Settlement of Disputes Between the Contracting Parties

1. The Contracting Parties shall endeavour to resolve any dispute between them concerning the interpretation or application of this Agreement, by means of prompt and friendly consultations and negotiations.

2. If a dispute is not resolved by such means within four months from the date on which a Contracting Party requested such negotiations or consultations, the dispute shall be submitted, at the request of either Contracting Party, to an arbitral tribunal established in accordance with the provisions of this Article or, by agreement of the Contracting Parties, to any other international tribunal.

Ganfeng are probably near two months ahead in their dispute before it goes to international arbitration -

Another fine mess for his legacy:

https://www.bnnbloomberg.ca/after-85-billion-tab-amlo-requests-weekly-updates-from-pemex-1.1998570

That comes after some $77 billion in cash and tax breaks the company has received during Lopez Obrador’s administration, which have failed to reverse losses. Pemex’s debt reached $106 billion last month, according to Chief Executive Officer Octavio Romero, making the company the most indebted oil producer in the world. Since the reviews by tax officials began, the company has yet to show signs of improvement amid a pile of unpaid suppliers, said one of the people.

So many scenarios the could be applied and what intrigues me it appeared Cadence were happy as the junior to let Ganfeng take on the Mex gov - perhaps there's something going on behind the scenes:

“Soon the president is going to announce the issue , I would wait for the president himself to report it, but we are doing well. I cannot give that scoop,” said former secretary Rocío Nahle, in a recent interview with Expansión , leaving open the possibility that the production concession will be granted to the state-owned LitioMx.

And this was recently released by Peter Secker.

Https://mexicobusiness.news/mining/news/ganfeng-lithium-seeks-partnership-mexican-government?tag=mining

Ganfeng explained that, if an agreement is reached with the court, the project could be developed in 18 months. However, if done with the government, given its financial and technological constraints, it could take 20 years to reach production. Secker stressed that if the matter is not resolved through the courts or through the creation of a new partnership, the project could end up being sold. "No one is going to invest a billion dollars unless they have some kind of security. People will prefer, for these larger projects, to go to lower risk jurisdictions," Secker said.

Perhaps we just needed to secure our seat at the negotiating table.

And the narcissist must be spiting feathers with today's news if perhaps San Francisco was part of the 'scoop' another missed photo shoot?

For anyone legally competent:

Ganfeng's agreement:

https://investmentpolicy.unctad.org/international-investment-agreements/treaty-files/759/download

The agreement we are disputing

https://assets.publishing.service.gov.uk/media/5a74ba5ae5274a3cb2866b4c/6860.pdf

Very similar -