Originally posted by help_me
Except lithium is essentially already nationalised under Chile's current mining code. Lithium is currently deemed as property of the state. We know the current government wants to do away with this antiquated law that was created in the midst of the Cold War, during a time where nuclear weapons were the cause of global panic, but I don't think there is any certainty that they will be able to do so due to not having control of the lower house. If the mining code cannot be altered, then a CEOL will be required, which comes at the decree of the President. Now, I'm certainly no expert on Chilean law and CEOL's, but I would assume if one President can issue a CEOL to a private enterprise, another may take it away. This is where I believe a partnership with Codelco will guarantee protection from any such nonsense, as any President willing to retract a CEOL from a government owned entity would likely face extreme public backlash, and I suspect the reason why we haven't already applied for our own CEOL as of yet despite being formally invited to do so.
Also to be noted that our property rights were not recognised until a few days after Pinera took power. I don't think this was a coincidence in timing. I believe the previous government did not want to recognise our right to exploit lithium from our old code tenements, though would of likely been forced to do so eventually, but not without dragging it out for as long as possible in an attempt to strong arm us in to giving them what they wanted. They made their intentions pretty clear after issuing a CEOL to Codelco covering properties that they do not own.
I don't want to place my faith in any future governments, they may have the intention and capacity to introduce any number of mechanisms that could severely harm our ability to operate if we choose to go at it alone. I see establishing a partnership with Codelco, and thus the government, as our greatest means of protection from any future unknowns.
All IMO
Mate, you need to read the mining legislation for nearly every mining jurisdiction around the world, particularly the definition's section of each framework and you will find that ALL mineral resources in most jurisdictions are classified as "property of the state'. That is why a miner pays a royalty on any minerals and/or petroleum and gas for resources which are exploited/produced. No different in Chile except lithium and some other minerals are classified as 'strategic', and all that stems from is Chile's ambitions to become a producer of nuclear energy back in the 1970s - something the current Mining Minister has stated needs to be changed because he thinks it is rediculous, as there are no more ambitions to create a nuclear energy industry in Chile. Also you need to research Chilean Mining Law/Regs a litle more as there are three avenues a tenement holder can take in seeking a CEOL. A Presidential grant is just one option.
Decree 64 was nothing more than a tanty thrown by the previous Government because LPI/MSB withdrew from the Maricunga tender and LPI/MSB was Codelco's ONLY viable development option at Maricunga. It was nothing more than a stunt and it has been PUBLICLY STATED that LPI/MSB has been invited to apply for a CEOL over Litio by the current Mining Minister. Just because there has been no public announcement about LPI/MSB applying for it's CEOL doesn't mean they haven't applied. I dont remember a public announcement about LPI/MSB applying to CCHEN for its old code quota, do you? I only remember the announcement that we were granted a quota over those tenements, the first in 30 years.
My advice to you - SELL, as you and some others on this site continue to jump at shadows. AND as I stated in my previous post, if push comes to shove we dont need Litio or Codelco to develop a very large BG LCE operation at Maricunga. We have ALL the leverage at that salar and the current Government knows it. Codelco hasn't broken soil on the salar. Its exploration efforts to date are ZERO. The exploration/pre-development works on the LPI/MSB tenements to date are the accumulation of around 10 years years of appraisal activities and over $70 million in expenditure. That cannot and will not be ignored by a Government, no matter their stripes.
