(Bloomberg) — The European Union is working on deals with Argentina and Chile that will widen its access to critical minerals and metals such as lithium needed for electric-vehicle batteries as part of its goal of creating a less carbon-intensive economy.
Preliminary memorandums of understanding could be signed during the next four months, according to the European Commission, the EU’s executive arm, which added that further partnerships are possible in South America and beyond.
While the market for electric-battery materials was booming, one group of investors stayed on the sidelines: mining giants. That seems surprising. Firms such as Anglo American Plc, BHP Group, Glencore Plc, Rio Tinto Group and Vale SA got where they are today by spotting whatever commodities would see strong demand and weak supply in future, scouring the world for the best resources, and watching the money roll in.
A decade ago, the likes of lithium, cobalt and graphite were minor materials, affected less by electric vehicles than the markets for lubricants, drill-bits and smelting equipment. Nowadays, battery demand is so intense that rising prices risk holding back the energy transition, and major industrial consumers are rushing to lock down supplies.
The global boom in electric vehicle production has sent demand for lithium-ion batteries soaring. That’s turned Chile’s vast, lithium-containing salt flats into a vital national resource. In Chile’s Salar de Atacama, near the border with Argentina and Bolivia, close to one-third of the world’s lithium is produced from brines.
But South America’s fifth most-populous country is losing market share on the world stage to Australia, which in 2017 leapfrogged Chile to become the largest producer of lithium. Argentina is also gaining momentum thanks to increased international investment.
BUENOS AIRES, May 8 (Reuters) – Argentina, known better for its Malbec than its mining, has its sights set on becoming a top ten copper producer by 2030, with an investor friendly stance luring global players like Glencore (GLEN.L) and Lundin Mining (LUN.TO) to its mountainous north.
The South American country has a pipeline of copper projects that could produce 793,000 tonnes a year by the end of the decade, government forecasts show, well below neighboring No. 1 producer Chile but near big players like Australia and Zambia.
A decision by the world No. 2 lithium producer Chile to tighten control over the key battery metal sector has left many in the industry wondering what the announced state-led public-private model will look like and who, if anyone, will benefit from it.
The lack of specifics on how much ownership the government will demand from companies and the pushback President Gabriel Boric could face when trying to create a national lithium company, add to the uncertainties Chile’s new policy has created.
https://www.northernminer.com/
Canadian juniors in Mexico were blindsided by a new mining regime on Apr. 29, after the Mexican Senate rushed through a contentious bill that experts say will deter investment.
Under the new mining law, companies have to deal with an increased burden of pre-consultation, impact studies and water concessions, among other things. The new law also requires financial commitments (bonding) that will be difficult to meet for junior explorers.
There are few minerals that play as pivotal a role in the global energy transition as lithium. The silvery white, soft, reactive metal is particularly good at storing energy, which is why it is used in all commercial electric vehicle batteries today and is unlikely to be replaced by another material anytime soon. The demand for lithium batteries is expected to grow more than five times by 2030.
Recognizing its strategic importance, economic potential, and its environmental consequences, President Gabriel Boric of Chile, the world’s second largest producer of the metal, announced plans in late April to increase state participation in the country’s lithium industry.
President Gabriel Boric’s programme to exert state control over lithium production sparks conservative backlash.
Santiago, Chile – It’s white — not yellow — but like gold, lithium has rapidly become one of the most sought-after precious metals on earth. Theoretically you can find it almost anywhere, but in practice lithium is best extracted from salt flats.
This explains why lithium fever is spreading throughout what is known as the lithium triangle, the salt flats of Chile and neighbouring Bolivia and Argentina. According to World Economic Forum, they account for around 60 percent of the world’s known lithium reserves. Of the three, Chile is currently the largest producer.
The move by the government of Chile to demand a controlling stake in all future lithium projects could be a boost for countries with large resources that are deemed more investment friendly, says Quebec-focused explorer Arbor Metals.
The nationalisation of lithium deposits in Chile and Mexico will “hasten a shift in future investments in lithium projects to other countries that are recognised as safe havens, such as Canada”, says the TSX-V-listed junior, which owns the Jarnet project, in the James Bay region.
LONDON, April 25 (Reuters) – Chile’s assertion of state control over its lithium industry has sent shock waves through the new energy metals sector. The country’s two big lithium producers, SQM (SQMA.SN) and Albemarle (ALB.N), have seen their share prices fall on the prospect of having to relinquish majority control of their operations or risk losing their licences once they expire in 2030 and 2043 respectively.
Shares in companies such as Pilbara Minerals (PLS.AX), Australia’s biggest lithium producer, have risen on the premise of slower investment and project growth in Chile, which hosts the world’s largest deposits of the battery metal.
Chile’s President Gabriel Boric announced on Thursday night his government would nationalize the country’s lithium, applying a model in which the state will partner with companies to develop the local industry.
The long-awaited policy in the world’s second-largest producer of the battery metal includes the creation of a national lithium company, Boric said on national television. State copper giant Codelco, the world’s No.1 producer of the metal, will be initially in charge of signing up partners for new contracts.
https://www.mining-technology.com/
A group argues that European energy companies have failed to take action to address human rights violations despite knowledge of abuses in the Columbian coal mining production chain.
Alleged victims of human rights abuses by the Columbian coal industry on Thursday filed an OECD complaint against several European energy companies, alleging their complicity in human rights abuses.
Victims of the coal industry in Columbia, submitted the complaint to the National Contact Point for the OECD Guidelines in The Hague, Netherlands. The guidelines are recommendations addressed by governments to multinational enterprises operating in or from adhering countries.
(Bloomberg) — Chile delivered its long-awaited lithium policy late Thursday, giving the state a majority stake in all new contracts and sending shares in the two current producers in the South American nation — SQM and Albemarle Corp. — tumbling.
While the government will respect existing arrangements with the two companies, both would move to the state-controlled model once contracts expire in 2030 and 2043, respectively. Alternatively, they could opt to give up a majority stake in their operations before then. SQM shares were down a record 20% at 3:35pm in New York, while Albemarle lost 10%.
SANTIAGO, April 14 (Reuters) – Lundin Mining Corp’s (LUN.TO) bid for control of Chile’s Caserones copper mine comes despite ongoing uncertainty over potential policy changes to royalties and taxes, an indication that investors may be regaining confidence in the world no.1 copper-producing country.
Lundin last month agreed to pay $950 million for 51% control of the mine, calling the deal “an endorsement that we believe the mining royalty and taxation discussions are trending in the right direction.”
Guatemala may have become the latest battleground in America’s bid to gain a foothold in the race for strategic metals dominated by China amid a remarkable proposed acquisition of a notorious nickel mine worth $1 billion, Newsweek can reveal.
A memo obtained by Newsweek indicates that, with the support of the U.S. government, the Guatemalan assets of the Switzerland-based Solway Investment Group—which were put under U.S. sanctions amid allegations of Russian influence peddling and ecological devastation—are in line for acquisition by a Canadian company for a “substantial discount.”
