Lithium Could Replace the Oil Industry: AMLOBy Paloma Duran | Wed, 03/23/2022 - 17:47
President López Obrador said Mexico cannot abandon the oil industry until it has a flourishing lithium industry, otherwise the country’s development will stall. He explained that oil can be replaced by lithium, since the mineral enables renewable energy-based power production by serving as the key component for battery storage. Following the president's statement, experts believe that if the energy reform and the nationalization of lithium are approved, the government could also issue more tenders for renewable energy projects.
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In 2021, the total investment attracted by the Mexican mining sector was US$4.24 billion, 15.6 percent lower than what CAMIMEX projected at the beginning of the year. Jaime Gutiérrez, President, CAMIMEX, explained that the country’s decrease in investment is a consequence of the lack of concessions, tax incentives and political certainty. In addition, he highlighted that the investment received in 2021 is 9 percent lower than levels prior to the pandemic.
The region has a significant share in the industrial market, of which 4.6 percent of production comes from the mining sector. Last year, of the US$11.2 billion invested in exploration worldwide, US$660 million went to Latin America. The continent’s biggest beneficiaries were Mexico, Chile, Peru, Brazil and Argentina. According to experts, the region has great opportunities to become a more welcoming mining hub. However, it must first address its social, political and legal uncertainty.
The company announced that it has completed the acquisition of the La Preciosa Project in Durango from Coeur Mining, which positions Avino as an intermediate-sized silver producer in Mexico. The company explained it decided to acquire the project due to its proximity to the Avino mine, which could generate financial and operational synergies between both projects.
The company announced that construction at the Camino Rojo Oxide Mine is 99.8 percent complete and that mining and processing rates are consistent with the company’s ramp-up plan. In addition, the company continues to evaluate several scenarios for its Camino Rojo Sulfide project to drive it forward. The company announced that its next milestones are achieving commercial production at Camino Rojo, metallurgical testing for the Camino Rojo Sulfide Project, as well as exploration programs in Mexico and Panama.