Member Info for jimb2

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.

222,000 quote earlier 6.71p NT 250,000

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

Nice, @Dallasdaz,

That's been echoed by a few with legal backgrounds, cautiously optimistic!

Dummy sell quoted on barcs today for 200,000 @ 6.71p, NT 250,000 and last two days 100,000 plus getting quoted up to 125,000

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.

Some representatives of Chinese enterprises including Tianjin Lishen Battery and Jeve Battery also joined discussions on investment and cooperation in the new energy field.

Just those two could be massive for Sonora -- DYOR

Tianjin Lishen Battery is one of the earliest lithium battery manufacturers in China, and it provides a range of energy solutions for various applications, such as consumer electronics, power batteries, and ultra capacitors. It has customers in India, Europe, and the United States, including Apple, Foxconn, Daimler, Volkswagen, and Hyundai .

Jeve Battery is a company that specializes in R&D and manufacturing of lithium-ion batteries for new energy vehicles (NEVs) and energy storage systems (ESS). According to its website, Jeve Battery was founded in 2009 with a registered capital of RMB 1.2 Billion and has been an active player in the industry of new energy and green energy solutions. It claims to have installed over 250,000 vehicles, achieved a maximum mileage performance of 400,000 KM for a single vehicle, and covered over 200 cities with its products.

Jeve Battery has also received funding from investors such as Fosun International and China Equity in its Series A and Series B rounds. In August 2022, Jeve Battery announced its capacity expansion strategy and aimed to become one of the top three battery suppliers in China by 2025. It plans to increase its annual production capacity from 5 GWh to 30 GWh by building new factories and upgrading existing ones.

** I think they are looking at 100GWh now**

They won't be heading to Sonora on the back of Ganfeng being ripped off - by the mex gov - IMHO

Possibly this is going ahead, I don't see how they can avoid discussing Ganfeng's situation, it might be that other investment will become conditional on the outcome of Ganfeng's involvement with Sonora?

Worth a repeat:

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.

At the meeting, Acuna disclosed that the Mexican federal government will offer up to 3-6 years of investment tax exemption to investors, whilst the state government could provide 10 years of salary tax exemption after individual consideration.

“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.

On May 27, 2023, 43 opposition members of PAN, PRI, PRD, Movimiento Ciudadano and the recently formed Grupo Plural filed an unconstitutionality action against the mining law reforms before the Supreme Court of Justice of the Nation (SCJN). They argued that the reforms violate several articles of the Constitution, such as Article 27, which establishes that concessions can be granted for mineral resources to privates. They also claimed that there were irregularities during the fast-track reform process, as it bypassed specialized commissions that review legislation.

On June 6, 2023, Minister Norma Piña accepted the request presented by the opposition senators and admitted the lawsuit. She fixed a term of 15 business days for both Congress and the President to present a report and send a certified copy of the Mining Law decree’s legislative antecedents, as well as of the Official Gazette where it was published. If the parties do not send the required files, the Court will work with the information it already has. The Supreme Court did not establish a deadline to pass a final judgment. Therefore, it could take around a year to get to a conclusion, as has happened in recent cases related to energy decrees.

Even though lawsuit has been admitted, this does not interfere with the deadline of 90 business days in which President López Obrador must create a state-owned lithium company, as was established in the Mining Law reform. The Court will have to clarify if there were irregularities during the fast-track reform process and if the reform violates any constitutional principles or rights.

In summary, Mexico's mining law reforms are a set of changes that aim to recover state control over mineral resources but have faced strong opposition from various sectors. The Supreme Court has admitted an unconstitutionality action against them but has not issued a final judgment yet. The outcome of this legal dispute could have significant implications for Mexico's mining sector and its future development.

BYD being involved in Sonora does open up the potential for the concessions to come into play in earlier years if we ever get there, but BYD must certainly have strong bargaining power considering there EV battery involvement with Tesla along with there own bus, truck and battery storage.

They are rapidly becoming a recognised global brand and any government with the opportunity to have them invest would be foolish not to embrace it, for those given the chance others are chomping at the bit with Tesla and so no reason to believe BYD are not equally as appealing - IMHO

https://www.bloomberg.com/news/newsletters/2023-09-22/elon-musk-is-in-no-hurry-to-build-more-tesla-car-plants

$10bn additional foreign investment has been announced for Monterrey to support the Tesla plant since the original Tesla figures were stated for one million vehicles.

Plus Ford using BYD batteries in some Chinese produced models, then the CATL Ford US partnership under scrutiny could lead to Ford possibly looking to Mexico for production.

Ganfeng/BYD NA?

Https://theedgemalaysia.com/node/683661

BYD, which stands for “Build Your Own Dreams” and is backed by Berkshire Hathaway Inc, has also been investing in lithium production in Brazil and Chile, the nation with the biggest reserves of lithium. It’s also evaluating options in Mexico.

“BYD is now a leading battery manufacturer, so we need a lot of lithium globally,” said Li.

Li shrugged off concerns that Mexico’s close ties with the US market would hurt BYD.

“In reality we have been to many states in Mexico and the governors welcome us. They really want BYD to invest in their state,” said Li.

Https://www.milenio.com/opinion/jesus-rangel/estira-afloja/litiomx-anulan-concesion-a-ganfeng-2

In that area, there is the company Bacanora Lithium, owned by the Chinese company Ganfeng Lithium, which already received notice last August of the cancellation of nine concessions by the General Directorate of Mines because it did not comply “with its minimum investment obligations as stated. “Mexican legislation requires” between 2017 and 2021.

On August 29, the president of the Chinese company, Li Liangbin , informed its shareholders about this decision and argued that the investment by its subsidiaries “significantly exceeded the minimum investment obligations,” that the cancellation of concessions violates the laws. Mexican laws and international law as “arbitrary and without foundation,” and that he has already filed the appeal for review to “challenge the resolution.” If necessary, it will resort to other resources of Mexican and international law.

Background FYI

Li Liangbin chairs Jiangxi Ganfeng Lithium, a supplier of lithium chloride and other lithium products. Ganfeng is headquartered in China's Jiangxi Province. In 2000, Li bought the factory which became the predecessor business of Ganfeng.

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.

I suppose we will see EMH news before Sonora, EMH strategic cornerstone offtake in the next two to three months and the DFS in the next three to four months. Unless there's pressure from nearshoring

Not much response to the EG1 Ant survey update? even the HotCcopper BB has no posts, I think a follow up interview with the CEO or another board member would be useful.

highlights

● Final Ambient Noise Tomography (“ANT”) geophysical interpretation received.

● Nine potential pegmatite targets in total have been identified, each characterised

by low seismic velocity anomalies.

● Survey data integration with geochemical data shows surface expression of

anomalies.

● Geochemical sampling and mapping continues at Bynoe in advance of maiden

drill program which awaits conclusion of MMP and AAPA approval process.

● Geophysical and geochemical integration and analysis ongoing.

On 1 August 2022, Core announced “BP33 drilling delivers outstanding results” (Refer:

https://wcsecure.weblink.com.au/pdf/CXO/02548420.pdf) whereby Core utilised Fleet’s ANT

technology over its already drilled world-class BP33 prospect, where the ANT Survey identified the

BP33 pegmatite characterised by a zone of lower velocities.

Previously announced:

ANT A1-1 400m x200m Weathering to 600m NW

ANT A1-2 600m x 300m Weathering to 1,125m NE

This weeks update:

ANT A4-1 500m x 1,500m Weathering to 870m NE

ANT A4-2 1,500m Weathering to 870m NE

ANT A2-1 200m x 100m Weathering to 870m NW

ANT A3-1 800m x 300m Weathering to 660m NW

ANT A3-2 400m x 200m Weathering to 660m NW

ANT A3-3 800m x 600m Weathering to 660m NW

ANT A3-4 400m x 200m Weathering to 660m NW

It's too late, the tech has compelling advantages - I agree @EV_Bull

https://www.reuters.com/business/autos-transportation/more-than-fifth-cars-sold-eu-august-were-full-evs-acea-2023-09-20/

BYD alongside Tesla and more to follow.