Member Info for jimb2

I do believe so @EV_Bull, the state as of of a few days ago!

A better translation and information on LitioMX plus other projects - nothing close Ganfeng's:

Lithium: essential mineral for energy autonomy and clean energy (dossierpolitico.com)

President Andrés Manuel López Obrador said at the morning conference a few days ago that the concessions that the two private companies have for the exploitation of lithium in the country have not completed the procedures before the Ministry of Economy and Secretary of the Environment, so they will not be able to exploit that mineral and the State company will be the only one that can extract and market the strategic mineral.

Seems we have a done deal!

@EV_Bull been looking Banamachi or Bacadéhuachi

On a big map not that far a part:

I would imagine this is where the confusion originates:

https://regeneracion.mx/el-19-de-febrero-inicia-la-era-de-litio-para-mexico-anuncia-amlo/

@mr.james. it certainly appears there's an agreement - if that typo is **Bacadéhuachi** then who else is there and Aflfonso Durazo has held meetings with Ganfeng, visited the pilot plant acknowledged there is $1bn to invest, and as far as I know the concessions form the largest most important lithium mine in Mexico -

The president pointed out that the most important lithium mine in Mexico is in **Banámichi**, Sonora, where they already work in collaboration with the private company that already exploits the area.

And this badly translated article seems to suggest they were in final negotiations a few days, could that be the legalisation ?

"haven’t finished loss Procedures before the Secretary of the Economy and the Secretary of the Environment"

https://nationworldnews.com/lithium-an-essential-mineral-for-energy-autonomy-and-clean-energy/

British Company in Sonora Baccanora Lithium exploring deposits that are in the northern state and tied up with Chinese corporate Ganfeng LithiumWhich one is that largest producer of that metal in the world. According to study of foreign companies, Sonoran mines have 8.8 million tons of lithium carbonate and as of this year 17,500 tons will start production, within 3 years it will be 35,000 tons.

Lithium is a metal that has reached a price Very high In the world market, in March last year the price of the mineral reached 69 thousand dollars for ton,

President Andrés Manuel López Obrador said in a morning conference a few days ago that the concessions that two private companies have to exploit lithium in the country they haven’t finished loss Procedures before the Secretary of the Economy and the Secretary of the Environment, for what reason they would not be able to Blow That mineral and the state company will be the only one that can extract and commercialize the strategic mineral.

I'm not 100% sure but 95% will do?

AMLO's agenda in Sonora
On Friday the 17th , he said, he will visit the Photovoltaic plant in Puerto Peñasco and then he will go to Nogales Customs , where he seeks to make a bypass so that the railway does not pass through the city, which requires a customs movement on the United States side. United and Sonora .

On Saturday , he will inaugurate the Agua Prieta-Bavispe highway , which, he stated, is already finished, and that same day he will visit the lithium deposit in Bacadéhuachi , where he will take a helicopter.

“We are going to go to a place called “La Ventana” which is the lithium mine, where the concessions are going to be handed over to a national company, because Sonora is the second state… we came down from Bavispe by helicopter of the Air Force, we cannot because this territory is very large, it is close to 20,000 square kilometers,” he said.

Well, that might be a video shoot for National TV

?

100 Km apart La Ventana and Banamichi

"We are going to go to La Ventana (a municipality in the state of Sonora), which is the lithium mine, where concessions are going to be delivered to a national company," López Obrador said at his daily press conference at the National Palace. .

The president pointed out that the most important lithium mine in Mexico is in Banámichi, Sonora, where they already work in collaboration with the private company that already exploits the area.

I hope it's a typo - another 11,478 @ 15.89p - oh the good old days of sub 10p, I'm missing them already.

Thanks @Dallasdaz.

Great, I look forward to the response from Ganfeng and KDNC if appropriate, if KM looks in don't forget to mention the $600bn valuation by the Mexican finance ministry:

https://www.bnamericas.com/en/features/lithium-a-us600bn-opportunity-for-mexico

So if Ganfeng generously settles for 1% that will do me for sure.

correct @tomcat-14,

other articles mention renegotiate and follow a similar context, not forgetting these are only words coming from A_L.O and not seemingly from other politicians including the Sonora governor - I agree it would appear Ganfeng aren't buckling!

It should be interesting to see what's on offer and the response from Ganfeng if this is accurate:

An ultimatum for Bacanora Lithium?

The government of Andrés Manuel López Obrador is lobbying for Gangfeng International, the Chinese owner of the most important lithium deposit in Mexico, to renounce the project

https://codigomagenta.com.mx/articulo/politica/un-ultimatum-para-bacanora-lithium/

Intriguing, the omission by Alfonso Durazo of US involvement in mining lithium considering the visit by AMLO to Bacadehuachi in a month, it does make me wonder if indeed they are close to an agreement with Ganfeng if it’s not already concluded, the wording below leads me to excluded the solar plants as being concluded ‘possibility’

https://dossierpolitico.com/vernoticias.php?artid=276189&relacion=&tipo=Principal&categoria=1
On how the foreign presence will become manifest, Durazo explained that "the first contribution of the United States to the Sonora plan is the possibility of accessing, with the support of the United States, financing at preferential rates for the construction of five photovoltaic power plants that will be They are projecting in the state of Sonora”.

In conjunction with the post by @EV_Bull from Friday:

"some conclusions have already been reached"

“The objective of the meeting was to review the progress of the Sonora Sustainable Energy Plan. We are doing extraordinarily well and some conclusions have already been reached, but right now I inform you that President López Obrador will visit Sonora on Friday the 17th, Saturday the 18th and Sunday the 19th of February. One of the objectives of this visit will be, precisely, to have a next meeting in Sonora to assess progress in the Sonora Sustainable Energy Plan, ”he said.
.....
The President of Mexico and the Governor of Sonora will visit Bacadéhuachi, as it is one of the points with the highest concentration of lithium in the region, and the project for the construction of artisanal roads in eight municipalities of the mountains will also be monitored.

https://www.infocajeme.com/general/2023/01/hay-plan-trilateral-para-litio-de-sonora-durazo/

Plus to add to valuations – it’s great to see Mexico put their valuation forward, if this was an oil play the AIM BB’s would be rife with ramping

https://www.mining.com/web/mexico-values-its-sonora-lithium-deposits-at-600bn/

@docmartin75,

that's certainly been suggested here and does make sense with the $48bn loan being on the table.

I'm not sure any valuation based on the past is applicable,

When Ganfeng took an interest in BCN they had failed to get off-takes to finance the mine and plant, Trump was in office claiming that climate change was a Chinese hoax anti EV and renewables, he pulled out out the Paris climate agreement and BCN were only intending to supple the Asian market but not the USA.

Perter Secker - markets:

https://youtu.be/e3yTED79Dhg?t=1484

Automakers were still in denial with the growth in EV's replacing ICE, Morgan Stanley had lithium output reaching 650K/t by 2025 with oversupply and LCE at $7,030/t by 2022 - by 2025 now looking to be more than double 1.3m tonnes and we know how wrong they were with prices.

Let's see how things develop in coming weeks, my view is that VW and BMW will have secured supply for Mexico production and will certainly have influence with the Mexican government along with others not forgetting supply deals are already in place.

Inflation reduction act $369bn investment in renewables plus other funding for critical minerals and 75% of an EV has to be built with materials sourced in north America. As things stand Sonora and Ganfeng are the best bet for Mexico to attract investment in battery and EV's.

US mines just aren't coming online as expected Piedmont and Thacker Pass are far behind.

Thanks Struv5, Jib808 at least it appears the long patient wait to finally see where the value lies in our JV's could be coming to a conclusion.

@Struv,

not my area of I'm afraid, I'm working the dream department and I trust the numbers put up by @EV_Bull, @Observer842, @tomcat-14 and @Bannor

but I don't see £1 being a challenge in coming weeks if Ganfeng get the go-ahead which looks increasingly likely and they do tend to buyout JV's being cash rich.

If you can access this have a read:

https://seekingalpha.com/article/4538591-ganfeng-lithium-stock-hub-ev-supply-chain#comments

If that does materialise I would feel hard done by with anything under £100M for our JV's.

With LCE looking to stay high for the next 7/8 years probably $30,000+ and of course the post yesterday of juniors being snapped up could make Evergreen look very interesting.

I do wonder how the market will respond if Ganfeng announce Sonora commencement with partnerships involving car majors VW, BMW and others and the KDNC JV's get the coverage they deserve.

That for me would be a great start on the way to £1 as other assets come together.

GL

For the benefit of our new poster @roger65

May 2019 MOU Ganfeng will supply lithium to the Volkswagen Group and its suppliers for the next ten years.

https://www.volkswagen-newsroom.com/en/press-releases/volkswagen-group-secures-lithium-supplies-4804

Dr. Stefan Sommer, Group Board Member for Components and Procurement at Volkswagen Aktiengesellschaft, said: “Over the next ten years the Volkswagen Group will be launching 70-plus new pure electric vehicles. That means approximately a quarter of the vehicles we deliver in 2025 will be powered by electricity. Consequently, there will be a rapid increase in our raw material demand for cell production in the coming years. We must make sure we cover this demand at an early stage. Long-term agreements like the one for lithium, a key raw material, that we have just concluded with Ganfeng are therefore of crucial strategic significance for implementing our electric offensive.”

And some senior management moves in VW North America.

https://www.euronews.com/next/2023/01/13/volkswagen-americas

Volkswagen of America President and CEO Pablo Di Si will take on the role of chairman of the company's Mexican supervisory board, and Andrew Savvas, Chief Sales & Marketing Officer at Volkswagen of America, will become chairman of its Canadian supervisory board.

An interesting appointment:

https://media.vw.com/en-us/executives/volkswagen-of-america/pablo-di-si

Blimey - that looks like big plans for Mexico!

Pablo Di Si
President & CEO, Volkswagen Group of America; CEO of Volkswagen Brand North American Region
Pablo Di Si was appointed President and CEO, Volkswagen Group of America, and CEO, Volkswagen North American Region, effective Sept. 1, 2022. He is responsible for the Group‘s growth strategy in the U.S., with a portfolio of more than 25 EV models planned by 2030. He assumes leadership for the 20,000+ employees across the region who are helping seize the historic market opportunities across the U.S., Mexico, and Canada.

They must have confidence in supply coming online - this has to be leading up to big news for lithium production in Mexico.

Of course LTH's will be aware!

http://www.ganfenglithium.com/new_detail_en/id/15.html

According to the announcement, Ganfeng Lithium Industry and its wholly-owned subsidiary Ganfeng International signed a "Long Term Supply Agreement" with BMW of Germany recently, confirming that the company and Ganfeng International will provide Germany with an agreement from 2020 to 2024 (they can be extended afterwards). The variety and specific quantity of lithium chemical products supplied by BMW's designated battery or cathode material suppliers, and the price is adjusted according to market price changes.

better the devil you know?

Ganfeng could be producing in 18 months others may be several years away, that is of course if they can develop the technical know how Ganfeng has and find the quality and concentrations of the JV's.

https://mexiconewsdaily.com/news/amlo-says-bmw-will-build-e-vehicle-plant-in-slp/

German automaker BMW will invest 800 million euros (about US $866 million) to build an electric vehicle manufacturing plant in San Luis Potosí, President López Obrador announced Thursday.

“There is already a flow of foreign investment to North America from all over the world,” he said. “I will be with [Minister of Foreign Affairs] Ebrard in San Luis Potosí in February because BMW from Germany decided to set up its plant.”

@roger65,

We were valued more than double the current SP, he is still here seemingly more confident than ever, 32p will seem very cheap very soon.

Not a single doubt in my mind that we are close to landing big news soon.

Another loan

https://source.benchmarkminerals.com/article/us-doe-backs-domestic-lithium-with-700-million-ioneer-loan

It's catching

https://source.benchmarkminerals.com/article/lithium-majors-tianqi-and-sqm-make-swoop-for-australian-juniors

Think like it's the beginning of big oil - it's Disruption!

Oh the simple things in life!

Similarly, the President of Mexico and the Governor of Sonora will visit Bacadéhuachi, one of the points with the highest concentration of lithium in Mexico and the world.

Can bring the most pleasure.

Okay off for a beer -

https://www.bnamericas.com/en/analysis/mexico-seeks-to-renegotiate-lithium-concessions-granted-prior-to-nationalization

I'm becoming more confident that the concessions are being seen as the jewel in the crown and Ganfeng our JV partner will go to production and very likely with some proceeds from the sale of concessions or parts of to US companies.

I believe we should know before the photo shoot in Bacadehuachi, seems LitoMX haven't got to an agreement with Ganfeng just yet but the fact they are still negotiating is very positive after 18 months or so of reviewing!

Anyone looked at where Cajeme is where the military security services are being located?

if it's the location I'm looking at between Hermosillo and the coast that looks to be mainly flat agricultural land
that could logistically support road freight military escorts from the port at Guaymas to the Solar farms on the coast further north but also roads through Hermosillo to Bacadehuachi:

Durazo announced that, on his tour from February 17 to 19, the president will supervise the progress in the construction of the solar power plant in Puerto Peñasco. For a subsequent visit, go to the municipality of Bacadehuachi, in the Sierra Alta, registered at this time as the one with the highest concentration of lithium in the entity.

Just thinking if Ganfeng were getting underway then having that security would be prudent!

If I do have the correct location of course

That would be worthwhile for A_L.O visiting Bacadehuachi to launch LitioMX JV operation and the beginning of the Sonora plan lithium production alongside the solar farms.