Mr Faargs, I did write a post earlier this morning on the Codelco matter but deleted it before the EGM started. I just don't think the Codelco application carries any substance. We have a media article out of Chile, no different to the nationalisation calls made by the media some months ago, only for the Government to put that matter to bed and call for foreign investment in its mining sector - which the Mining Minister was doing again in London this week.- and notably at the London Metal Exchange.
What Codelco is applying to do, is nationalise the Maricunga salar which in effect is against government policy and contrary to a string of international treaties Australia and Chile are signatories to.
It is a last ditch attempt by Codelco to remain relevant at Maricunga. It has sat on its hands for the last ten years and done very, very little in relation to its lithium tenements. How interested are Codelco about getting into lithium? I have been informed that Codelco's Lithium Division has a workforce of one. That shows you how serious they are about mining the white metal and confirms the Mining Minister's public comments some months ago where she stated that Codelco is not interested in lithium as it has enough on its plate with its copper operations.
I have my own ideas as to why Codelco have made this move but wont expand on them here.
The AGM in mid-November will offer shareholders an opportunity to question the Board and management. If you are concerned, frustrated or angry, that forum will provide an opportunity to respectfully ask questions about the company and its activities. I was surprised that I was the only person who raised questions at this morning's EGM.
Taking a break from HC and looking forward to the AGM.
LPI Price at posting:
60.0¢ Sentiment: Buy Disclosure: Held
