Let's Look at Lithium...!

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greg~judy
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Re: Let's Look at Lithium...!

Post by greg~judy » Thu Jul 05, 2012 8:29 pm

~
a nice road trip for pablo...
but the big question remains - privatization vs. state enterprise...
i.e. should chile take the bird in the hand (7% royalties = X00-millions$)
or wait for the two birds in the salars... (X-billions)?
:|
Chile Invites Private Investors for Lithium Contracts
Resource Investing News | Jul. 5, 2012

Last month, Pablo Wagner, the deputy mining secretary of Chile, completed a marketing road show in New York and Toronto in an attempt to interest investors in bidding for contracts to produce lithium in Chile. Wagner met with as many as 300 representatives of investment banks and mining companies during his four-day visit. The trip generated some interest, with as many as 24 investors becoming involved in the lithium bidding process.

On June 12, Chilean President Sebastian Pinera invited local and foreign companies to tender offers to mine the country’s lithium resources. Under the guidelines, a successful bidder will be granted the rights to extract up to 100,000 tonnes of lithium over a 20-year period in exchange for paying the government royalties equivalent to 7 percent of the total yield. The special lithium operating contract (CEOL) covers exploration and production of lithium, excluding areas already in production under a 1932 mining law. The operating contract is expected to generate as much as $350 million for the government.

Developments in Chile are extremely relevant to all lithium stakeholders as the country currently accounts for as much as 43 percent of lithium production.

Potential stakeholders

Li3 Energy (OTCBB:LIEG) and its partner POSCO (NYSE:PKX), the largest steelmaker in South Korea and the fourth worldwide, already have a project in the Salar de Maricunga and are among the potential bidders. Other stakeholders include Talison Lithium (TSX:TLH), Minera Copiapó linked to Samsung SDI and Francisco Javier Errázuriz, Pan American Lithium (TSXV:PL), and Simbalik. Chile-owned top copper producer Codelco is also a potential bidder, and its chairman, Gerardo Jofre, indicated that he is “interested in participating but must study whether investing in the metal would be profitable.”

Opposition

Chile-based lawyer Marlene Brokering indicated to Lithium Investing News that the initiative has been challenged by the opposition, which fears that the government is encouraging the privatization of state-owned resources. She commented, “some people oppose this project for two main reasons. One is that they wish for the development of lithium batteries here in Chile, so the country has better revenues for the lithium. Another [reason] people oppose the project [is] because many foreign mining companies have paid in Chile little to no taxes due to the use of different accounting procedures.”

The government wants the lithium industry to grow; however, the opposition says the state should maintain ownership over the industry, which might represent billions of dollars in future revenue. The results of this opposition are unlikely to influence Pinera, as he strongly advocates free-market policy and is the first conservative Chilean president since the end of the Pinochet military dictatorship in 1990. Senators representing the opposition recently announced their intention to bring the decision to privatize the country’s lithium reserves before the Constitutional Court.

Next stage

To participate in the bidding process, investors have until the end of July to acquire the auction conditions and terms. The deadline for submission of tenders is September 12, and the first decision is expected to be announced in the fourth quarter of this year. The government has said that this tender will be the first of several tenders.
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greg~judy
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Re: Let's Look at Lithium...!

Post by greg~judy » Thu Jul 19, 2012 11:54 am

~
ho-hum, it seems not too many allchileans are at all interested in Li...?
oh well, they may (eventually) want to watch some of the players a bit closer?
pablo wagner certainly has his nose in the market(ing)...!
another nice road trip (after nor-am)...
hope he lucks out on more lucrative~lithium bizness on the far side of the pac-rim...?
:idea:
Chile to woo Asia-Pacific investors in lithium road show --- July 19, 2012

Chile's deputy mining secretary will travel in the coming days to Australia, Japan and South Korea in a bid to attract investors for an auction of contracts to develop the country's lithium reserves.

Pablo Wagner will travel on Friday to Australia, where he will visit the cities of Sydney and Mackay, the Chilean government said in a statement.

He will later head to Japan to meet with government officials and executives of companies such as Mitsubishi and Toyota before making a final stopover in Seoul, where he will hold talks with private company executives.

Last month, Wagner met in the United States and Canada with representatives of investment banks, investment funds and mining firms interested in taking part in a bidding process for lithium contracts in Chile, which holds roughly a quarter of global reserves of the world's lightest metal.

Winners of the bid process, launched last month, will sign a 20-year special lithium operating contract, or CEOL, with the government covering exploration and production of that mineral in Chile's Atacama Desert.

President Sebastian Piñera's conservative administration opted for that type of contract because, although Chile's 1973 Mining Code defines lithium as a "strategic" mineral for which regular mining concessions cannot be awarded, the country's constitution allows special contracts to be signed to exploit those reserves.

Under the contract terms, companies will be allowed to mine up to 100,000 tons of lithium over two decades. In exchange, they must agree to sell the lithium to the Chilean market or export it under the terms and conditions specified in the CEOL.

Currently only two companies - Sociedad Quimica y Minera de Chile and Sociedad Chilena de Litio - mine lithium in the Andean nation, the world's largest producer of the metal.

Earlier this month, Piñera's government urged state-owned giant Codelco, the world's largest copper producer, to study the possibility of starting lithium production.

Potential investors have until July 31 to acquire the auction conditions and until Sept. 12 to submit their bids.

Through the CEOLs, the government plans to collect $350 million per project via a 7 percent sales royalty.

Chile's opposition and experts have questioned the government's move to open lithium mining to foreign investment, saying it is a resource that should be developed by the state.

Global demand for lithium - a key component in batteries for mobile devices and electric/hybrid vehicles - has tripled over the past 10 years, while Chile's Cochilco state copper commission says the price of lithium carbonate on world markets has risen from $2,000 per ton in 2001 to around $6,000 per ton at present.

Chile holds the planet's second-largest lithium reserves, trailing only neighboring Bolivia.
Things are not what they appear to be: nor are they otherwise.
--- Surangama Sutra
“If we want everything to stay as it is, everything will have to change."
--- Giuseppe Tomasi di Lamedusa

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zaebis
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Re: Let's Look at Lithium...!

Post by zaebis » Thu Jul 19, 2012 3:00 pm

greg~judy wrote:~
ho-hum, it seems not too many allchileans are at all interested in Li...?
oh well, they may (eventually) want to watch some of the players a bit closer?
pablo wagner certainly has his nose in the market(ing)...!
another nice road trip (after nor-am)...
hope he lucks out on more lucrative~lithium bizness on the far side of the pac-rim...?
:idea:
I am quite pumped for both cop and lit.. Both cop and lit are huge moneymakers and I see no end in sight for demand. Chile is well positioned. Also when Bolivia finally starts mining (or rather opens to foreign miners) lit will be delivered via Chile anyway so fringe benefits are here. VIVA ATACAMA !!!
Arica siempre Arica...

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Re: Let's Look at Lithium...!

Post by Fishboy » Thu Jul 19, 2012 5:21 pm

Call me a horrible pinko-commie eco-warrier, but everyone seems to think that the salares are sterile habitats with nothing to offer. They are actually pretty interesting ecosystems in their own right: remnants of the paleolakes that used to cover the Altiplano, they now represent extreme conditions and the organisms associated with them have adapted to extreme conditions (salt concentrations, UV, temperature etc). Apart from the flamingos that get the tourists all moist, there is a large and increasing interest in using them as sources of microbes and algae for biomining, biofuel and bioactive products e.g. the things that could improve the efficiency of mining, help limit fossil fuel use and stop your cancer developing. They also support endemic fishes (e.g. Orestias spp) that are not found anywhere else on the planet. They are not just shallow brine pools waiting to be monetised.

We get into another interesting Rio v Kyoto argument by proposing the development of these resources similar to that of wind turbines (Kyoto) that lead to increased mortality of conservationally important birds (Rio).
If you think that the EIA stuff for Aysén was fun, wait until it gets going for the salares...

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Re: Let's Look at Lithium...!

Post by admin » Thu Jul 19, 2012 5:27 pm

The money is not in the raw resource. The money is in the technology. How much would you pay for a pound of lithium vs. a 1 pound laptop or cell battery? You do the math.

It is the same mistake Chile made with copper. For generations chile mined the copper, sent it to some other country, then imported the finished copper wire to use in their houses. Still, very little finished, end user, copper is produced in Chile relative to the amount of finished copper Chileans use (e.g. cars, house wiring, phone lines, and so on). How many batteries used by Chileans are produced in Chile? How many finished batteries are exported from Chile?

Chile should be making the access to the lithium reserves contingent on the production in the country of finished products.
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Re: Let's Look at Lithium...!

Post by admin » Thu Jul 19, 2012 6:43 pm

By the way, that might be the only way to make both the socialist and capitalist spectrum of the political wings in Chile all happy about selling lithium at the same time.
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Re: Let's Look at Lithium...!

Post by Fugger » Fri Jul 20, 2012 9:41 pm

admin wrote:The money is not in the raw resource. The money is in the technology. How much would you pay for a pound of lithium vs. a 1 pound laptop or cell battery? You do the math.

It is the same mistake Chile made with copper. For generations chile mined the copper, sent it to some other country, then imported the finished copper wire to use in their houses. Still, very little finished, end user, copper is produced in Chile relative to the amount of finished copper Chileans use (e.g. cars, house wiring, phone lines, and so on). How many batteries used by Chileans are produced in Chile? How many finished batteries are exported from Chile?

Chile should be making the access to the lithium reserves contingent on the production in the country of finished products.
Doesn't even have to be batteries, it would already help if Chile would export 99% pure Lithium (which costs around USD 50'000 per ton) rather than the Lithium carbonate which they actually do export (and which costs around USD 5'000 per ton).
1531 pacta sunt servanda

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Re: Let's Look at Lithium...!

Post by admin » Fri Jul 20, 2012 10:58 pm

French fry oil?
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Re: Let's Look at Lithium...!

Post by greg~judy » Sat Sep 15, 2012 11:03 am

~
please stay tuned for more Li~action...
the 24th will show us the winner and the way fwd...?
:?:
3 Bids submitted to develop Chilean lithium

Chile's government said Friday that three companies have submitted bids to develop lithium reserves in the country's northern region.

One of the bidders was Posco Consortium, made up of South Korean firms Posco and Daewoo International Corporation, Japan's Mitsui and Santiago-based Li3 Energy.

The other two were the Chilean firms Sociedad Legal Minera NX UNO de Peine, controlled by Grupo Errazuriz; and Sociedad Quimica y Minera de Chile.

SQM is the world's leading lithium producer and one of only two companies - along with Rockwood Holdings - that mine lithium in the Andean nation, the world's largest producer of the metal.

"We've steadily reached each goal we've set for ourselves in opening the lithium market. In the coming days, we'll know the winner of the CEOL (Special Lithium Operation Contract)," Deputy Mining Secretary Pablo Wagner said at a press conference.

That winner "will help us inject more competition and innovation into this sector. This is a unique moment for Chile. It's an opportunity we can't miss," he said.

A total of 66 companies had acquired the auction conditions, Wagner said, adding that the three bidders met the government's requirements.

"All of the companies were rated and positively evaluated. The only decision in awarding (the contract) is the best economic offer," the deputy secretary said.

The economic characteristics of each bid and the winner of the concession will be unveiled on Sept. 24.

The winner of the bid process will sign a 20-year CEOL with the government covering exploration and production of that mineral in Chile's Atacama Desert.

President Sebastian Piñera's conservative administration opted for that type of contract because, although Chile's 1973 Mining Code defines lithium as a "strategic" mineral for which regular mining concessions cannot be awarded, the country's constitution allows special contracts to be signed to exploit those reserves.

Through the CEOLs, the government plans to collect $350 million per project via a 7 percent sales royalty.

Chile's opposition and experts have questioned the government's move to open lithium mining to foreign investment, saying it is a resource that should be developed by the state.

Global demand for lithium - a key component in batteries for mobile devices and electric/hybrid vehicles - has tripled over the past 10 years, while Chile's Cochilco state copper commission says the price of lithium carbonate on world markets has risen from $2,000 per ton in 2001 to around $6,000 per ton at present.

Chile holds the planet's second-largest lithium reserves, trailing only neighboring Bolivia.
Things are not what they appear to be: nor are they otherwise.
--- Surangama Sutra
“If we want everything to stay as it is, everything will have to change."
--- Giuseppe Tomasi di Lamedusa

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Re: Let's Look at Lithium...!

Post by JHyre » Thu Jan 31, 2013 5:53 pm

Sorry if this is redundant: http://siteselection.com/theEnergyRepor ... ources.cfm.

John Hyre

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Re: Let's Look at Lithium...!

Post by frozen-north » Thu Jan 31, 2013 8:00 pm

greg~judy wrote:
please stay tuned for more Li~action...
the 24th will show us the winner and the way fwd...?

3 Bids submitted to develop Chilean lithium

Chile's government said Friday that three companies have submitted bids to develop lithium reserves in the country's northern region. .....

Las inconsistencias que aún penan tras la invalidación de la licitación del litio

La fallida entrega a Soquimich de los derechos de explotación de 100 mil toneladas de litio, a través de una licitación que debió volver a cero, terminó con el subsecretario y la fiscal de la Subsecretaría de Minería fuera del gobierno y una cadena de gruesos errores cometidos bajo la lupa del Ministerio Público por posible fraude al Fisco. También son investigados dos ejecutivos de SQM que mintieron al afirmar que la empresa no tenía litigios con el Estado. Uno de ellos es el hermano del ministro de Minería.

http://ciperchile.cl/2012/11/22/las-inc ... del-litio/

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greg~judy
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Re: Let's Look at Lithium...!

Post by greg~judy » Thu Jan 31, 2013 8:03 pm

JHyre wrote:Sorry if this is redundant: http://siteselection.com/theEnergyRepor ... ources.cfm.

John Hyre
~
we would never accuse you of being redundant, J~H...
:alien:
<snip to end...

It is almost guaranteed that it will be profitable for any company in the electronics supply chain and ecosystem to establish a presence in the ABC region <argie-boli-chili> so it is worthwhile to explore that option while an early-mover advantage exists. And it will depend largely on the visionaries and the entrepreneurs to make it happen...

Entrepreneurial support ecosystems will also be fundamental to reach the lithium vision, and these are thriving in the ABC markets. A highly successful program called StartupChile has lead to the relocation of more than 300 entrepreneurs from around the world to start their businesses in Chile. On the Argentinean side, La Plata Valley is a group leading the technology commercialization of breakthrough battery products from the research lab to the market. Bolivia’s capital of La Paz has launched a serious incubator effort and is aiming to attract several lithium-based startups.
any entrepreneurs out there in allchile~land...?
we know there are least a few...?
don't be shy...?
:?:
Things are not what they appear to be: nor are they otherwise.
--- Surangama Sutra
“If we want everything to stay as it is, everything will have to change."
--- Giuseppe Tomasi di Lamedusa

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