La Rioja’s decision to advance in the regulation of lithium utilization it has set off alarm bells in the private sector and renewed tensions with other provinces. Precisely in La Rioja this mineral is not as abundant as in its neighbor Catamarca or in Salta and Jujuy.
Trade criticisms point at a bill passed by the provincial legislature a few weeks ago to declare the mineral and its derivatives as “strategic resources” a measure that would allow the suspension of the permits granted.
The Argentine Chamber of Construction (CAMARCO) expressed its “deep concern” about the new legislation on Tuesday, stating that “not only does it not respect the exploration permits and concessions granted to companies in the sector, but it generates distrust and follows a contrary orientation way towards the possibility of future investments”.
Meanwhile, from the Argentine Chamber of Mining Entrepreneurs (CAEM), they indicated that they hope to be able to analyze the issue together with the National Secretariat of Mines, chaired by Fernanda Ávila, and the provincial authorities. “This kind of measure raises red flags for investors, when what the country really needs is to receive productive investment,” they said.
Since its approval on December 15, it still reads 10.608 it has not been made official so it is not yet effective compliance. The only official document is the provincial legislature website, where it was reported that “the project declares lithium and its derivatives as strategic natural resources for their contributions to the energy transition and contributions to the socioeconomic development of the province”.
What is known so far from the fine print is a 7-article document that was circulating on WhatsApp. There, he declares to “public interest” the study, research, prospecting, exploration, exploitation and industrialization of lithium and its derivatives and adding value to the products obtained, while Suspend licenses for prospecting, exploration and mining concessions in the province for 120 days.
Today in the province there are no lithium projects, as they are in an incipient stage, where they have yet to explore and determine their resources. The only two lithium projects in full expansion of their production capacity and together exported for about 700 million dollars in 2022 are in Catamarca and Jujuyprovinces which together with Salta make up the so-called “lithium triangle”.
The La Rioja provision could instead affect the permits granted, since the Executive will define “areas of interest” for research, where the permits granted will expire, according to one of the articles in the unofficial draft. Last November, the province authorized Canadian mining company Origen Resources to explore for lithium in an area of 21,000 hectares bordering San Juan, where the company has another project underway.
The initiative promoted by Governor Ricardo Quintela has relaunched the official internship. In the Government they recognize that “the impact clearly will be negative” and will stop awarding contracts until the fine print is sorted out.
Surprisingly, Kirchnerist Senator Oscar Parrilli questioned the benefits and lack of regulation in the lithium industry almost simultaneously with the Rioja law.
From the Secretariat of Mines they indicated that “as stated in the Constitution, each Province have control over your own resources. We will respect the decisions they take and we will give our contribution to the development of the activity in the Province”, they assured.
Source: Clarin
