Lithium Production Could Be in Government HandsBy Paloma Duran | Thu, 10/07/2021 - 14:22
President López Obrador has sent his electricity reform to congress, which seeks to give the government exclusive control of the country's lithium reserves. Bacanora Lithium ensures that proposed electric reform is not a threat to the company or project since it meets the new criteria and licensing requirements. In addition, López Obrador apologized to the Yaqui community and provided them with more than 2,900ha in lands in an attempt to provide social justice.
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The electricity reform that seeks to strengthen the CFE and grant it more than 50 percent of the market share has been sent to congress. If approved, the reform would also give the state exclusive control of the country's lithium reserves, while private companies could lose their concessions if they do not meet the new criteria.
Bacanora Lithium has stated that the new electricity reform proposed by President López Obrador will not affect its lithium concessions since the company has already started exploration work, and has also met all licensing requirements.
President López Obrador has granted an official apology to the Yaquis indigenous group for the crimes committed by authorities against them. In addition, the president has returned lands to the group in an attempt to deliver justice and repair the damage caused in the past decades.
The Mexican government has requested bids to hire legal advisors for the international arbitration processes of 2 cases in which the country is the defendant and another 10 cases that could be filed against Mexico. In addition, experts believe that the new electricity reform, if passed, could generate more lawsuits for the country.
The International Council of Mining and Metals (ICMM) has welcomed CAMIMEX as a member of the organization, together aiming to further develop and promote sustainable mining in the country. CAMIMEX is now part of the 28 companies and over 35 national, regional and commodity associations that make up the ICMM, an organization dedicated to a safe, fair and sustainable mining and metals industry.
Copper prices have followed a downward trend after China, the largest consumer of metals, began to suffer an energy supply crisis, which suspended activities in factories and created uncertainty in demand for the metal.
The situation in China has fueled uncertainty among investors, who want to reduce exposure in the volatile market environment. In addition, there are other factors that are contributing to this uncertainty such as that central banks are preparing to reduce stimulus and the risks that the US might fall into a financial crisis, reported Reuters.