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Argentina’s lithium pipeline promises “white gold” boom as Chile tightens control

Argentina's lithium pipeline promises "white gold" boom as Chile tightens control
Photo: Reuters

April 24 |

In Argentina’s mountainous north, a robust portfolio of lithium projects about to come online looks set to unlock a production wave that could triple its output of the key metal for electric vehicle batteries in the next two years.

The world’s fourth-largest producer of the silvery-white metal sits within the so-called “lithium triangle” and has been attracting investment from Canadian mining companies to ones from China with a regional and market-driven model, even as a wave of resource nationalism has swept through the region.

Neighboring Chile, the region’s top lithium producer, last week unveiled plans for a state-led public-private model, spooking investors. Bolivia has long maintained tight control over its huge but largely untapped resources, while Mexico nationalized its lithium deposits last year.

In Argentina, although state energy company YPF YPFD.BA began exploring for lithium last year, the sector has been driven largely by private enterprise and periodic approvals of new projects as the government has sought to attract more export dollars through mining, a rare bright spot amid the economic downturn.

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“Argentina has been granting concessions to projects for the last 10 years,” said Franco Mignacco, president of the Argentine Mining Business Chamber. “That’s why today we have this level of lithium investment and development and the possibility of growth.”

Mignacco estimated that Argentina’s current production of 40,000 tons of lithium carbonate could triple by 2024-2025 to 120,000 tons, which could take it beyond China and closer to Chile, which currently produces about 180,000 tons per year.

That would be driven by new projects coming online in addition to the two currently in production. The country has six lithium projects under construction and 15 in advanced exploration or feasibility stage, Mignacco said.

Argentina, Bolivia and Chile together sit on half of the world’s mineral resources beneath otherworldly salt flats in the high-altitude Andean plains.
But strategies for developing it diverge.

“Argentina’s lithium sector has thrived through a decentralized pro-market strategy,” said Benjamin Gedan, director of the Latin America program at The Wilson Center, adding that, in contrast, Bolivia’s lithium sector “has repeatedly stagnated as a result of excessive state control.”

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Chile, he said, may have found a “smart middle ground” with its public-private model, which would hand majority control of all new lithium projects to the state in a nationalist shift, but would still give private enterprise a key role.

The wave of resource nationalism has sparked some talk among officials of a possible OPEC-style lithium cartel in the region, although analysts see this as unrealistic given the industry’s diverse models and levels of development.

Meanwhile, Argentina faces challenges including economic turbulence with high inflation and capital controls complicating business, while the country heads into general elections in October, creating political uncertainty.

However, its lithium pipeline may keep the sector buzzing and even gain ground on rivals. Overtaking neighboring Chile would be highly unlikely, but some analysts were aiming high.

“Chile today produces and exports much more lithium than Argentina,” said Natacha Izquierdo, an analyst at consultancy ABCEB. “But if the projects we have here today come to fruition, Argentina could overtake us.”

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Mexico requests extradition of ‘Mini Lic’ for murder of journalist Javier Valdez

The Mexican government has requested the extradition of Dámaso López Serrano, a former high-ranking member of the Sinaloa Cartel, who is accused of masterminding the 2017 murder of Mexican journalist Javier Valdez, the Attorney General’s Office announced on Tuesday.

López Serrano, known as “Mini Lic,” was arrested last Friday in Virginia, United States, on charges of fentanyl trafficking, a crime he committed while on parole.

“This is the key issue for us, he [López Serrano] is the mastermind of this murder. The rest of the perpetrators are already processed and in jail, he was the one missing,” said Attorney General Alejandro Gertz.

“We immediately made the extradition request,” the official added during the routine morning press conference of President Claudia Sheinbaum.

Valdez, an award-winning reporter specializing in drug trafficking and correspondent for AFP and the newspaper La Jornada, was murdered on May 15, 2017, in front of the office of his magazine Riodoce in Culiacán, the capital of Sinaloa state.

“Mini Lic” was originally arrested in 2017 when he voluntarily turned himself in to U.S. authorities and pleaded guilty to trafficking methamphetamine, heroin, and cocaine. In 2022, he was released on parole.

Gertz confirmed that the Mexican Attorney General’s Office had requested López Serrano’s extradition “countless times,” but Washington had declined to act on the request because he had become a “protected witness” for the U.S. government and “was providing a lot of information.”

“Now, with this situation where they themselves are acknowledging that this individual is still committing crimes, I think there are more than enough reasons for them to support us,” the prosecutor added.

The Sinaloa Cartel is one of the largest drug trafficking organizations in Mexico and was founded by Joaquín “El Chapo” Guzmán, who is serving a life sentence in the United States.

Culiacán has been shaken by a wave of murders since the arrest of Ismael “Mayo” Zambada, another key leader of the cartel alongside Guzmán, on July 25 in New Mexico, United States.

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International

Cuba’s government stresses openness to serious, respectful U.S. relations

Cuba reiterated on Tuesday its willingness to engage in dialogue with the United States, just weeks before Republican President Donald Trump assumes office. During his first term, Trump halted the historic rapprochement between the two countries, which had been initiated just ten years earlier by Democrat Barack Obama.

“It will not be Cuba that proposes or takes the initiative to suspend the existing dialogues, to suspend the existing cooperation. Not even the discreet exchanges on some sensitive issues,” said Cuban Deputy Minister of Foreign Affairs Carlos Fernández de Cossío at a press conference in Havana.

“We will be attentive to the attitude of the new government, but Cuba’s stance will remain the same as it has been for the last 64 years. We are willing to develop a serious, respectful relationship with the United States, one that protects the sovereign interests of both countries,” he added.

His statements come on the occasion of the tenth anniversary of the historic rapprochement announcement between Washington and Havana.

On December 17, 2014, Cuban leader Raúl Castro (2006-2021) and Barack Obama (2008-2016) announced the beginning of a thaw in relations, which led to the restoration of diplomatic ties in 2015, after more than half a century of confrontation.

This process of thawing bilateral relations was later halted by businessman Donald Trump, who significantly reinforced economic sanctions against the communist-ruled country. The Republican will return to the White House on January 20.

Cuba, under a U.S. trade embargo since 1962, was re-listed in 2021 on the “blacklist of countries supporting terrorism,” blocking financial and economic flows to the island of 10 million inhabitants.

Subsequently, the administration of current Democratic President Joe Biden made only slight adjustments to the sanctions and also kept Cuba on this list. However, his administration resumed bilateral contacts with Havana on migration issues and the fight against terrorism.

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International

Mexican government to use church atriums for gun surrender program to combat violence

The atriums of Mexican Catholic churches will be used for the voluntary surrender of weapons in exchange for economic and legal incentives as part of a plan announced on Tuesday by the government to reduce violence.

According to the Mexican government, there is a link between the illegal trafficking of weapons—almost entirely coming from the United States—and the spiral of criminal violence that has plagued the country since late 2006, when a controversial military anti-drug offensive was launched.

“The idea is to set up areas in the church atriums where people can voluntarily surrender their weapons, and in return, they will receive financial resources based on the weapon they are turning in,” explained President Claudia Sheinbaum during her regular press conference.

The left-wing leader emphasized that the program, called “Yes to Disarmament, Yes to Peace,” guarantees that those who surrender their weapons will not face any “investigation.”

“What we want is to disarm. This will be implemented next year. We also did it in Mexico City, and it had significant results,” added the former mayor of the capital, with a population of 9.2 million.

The disarmament plan is part of the government’s “comprehensive security strategy,” one of whose pillars is promoting a culture of peace, especially in regions severely affected by organized crime violence, Sheinbaum pointed out.

More than 450,000 people have been murdered in Mexico since the government launched its military-led anti-drug operation, alongside about 100,000 people who have gone missing.

Despite being a secular state, the Mexican Catholic Church has played a key role in efforts to contain violence, with priests acting as mediators between citizens and criminals. Several clergy members have been killed for this cause.

Just last week, the Catholic hierarchy called on cartels to declare a truce in their violent actions during the celebration of the Virgin of Guadalupe on December 12 and the upcoming Christmas holidays.

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