Two issues raised today - one which is 'whacko Jacko' stuff. Chile is a member of the OECD, WTO and APEC and is a signatory to a number of global free trade and market agreements and other instruments - including a Free Trade Agreement with Australia. Nationalising its mining industry would be economic suicide - it would end up like Venezuela, an economic pariah. There is zero chance of that happening.
In terms of Codelco and what it could bring to the table at Maricunga. For starters it is part of the institutional furniture in Chile, much like BHP is in Australia, except it is government-owned. It is the largest copper miner in the world and has a strong balance sheet, occasionally fed from Chilean Government coffers.
A joint venture of some type with Codelco - an equity buy-in to the current project or participation in a stage two joint venture at Maricunga would give LPI enhanced government and corporate acceptance in Chile and shore up our standing in that country. It could possibly present value-adding investment opportunties that dont currently exist, but which could develop along with expanding EV and other battery demand. The Chilean Government is very keen to develop lithium-related value added industries and sees Codelco as being a player in that sector.
However, if push comes to shove, we dont need Codelco or the Litio tenements as there is a strong possibility the Old Code ground at Maricunga could hold around 2.5 to 3 million tonnes of very high grade LCE - 50k of annual BG LCE production for 30 years. The Litio tenements are icing on the cake AND we must not forget that the Chilean Government has recognised our property rights and permitted LPI/MSB to apply for a CEOL over our new code ground. Time will tell which way Codelco will jump, but I have a strong feeling the delay in the EIA was to accomodate analysis of higher BG LCE output at Maricunga, production that would accommodate Codelco in some form. We hold all the aces in the pack at Maricunga, including the only flat off-salar land for site development works. Codelco cannot build its processing plant in the National Park adjacent to its tenements. Its needs us more than we need them.
The Chilean Government recognises the enormous amount of work LPI, MSB and its predeccessors have done over many years at Maricunga and that the project is not that far off a FID. The Chilean Government wants and needs foreign investment and it is not going to jeopardise its hard-earned international reputation as a safe place to invest. . Patience required. Onwards and upwards. Good times ahead. Stay focussed on the things that matter - BS PR is not one of them.
LPI Price at posting:
27.0¢ Sentiment: Buy Disclosure: Held
