General Discussion AGY, page-18294

Argentina’s government will this month decide whether to implement a supercharged lithium tax which could spell disaster for a number of WA-based explorers and an Australian mining giant.

Federal and provincial leaders in the South American nation are proposing a special tax on lithium mining profits to fund significant infrastructure upgrades across the country.

The exact details of the tax are yet to be released but the plans are set to be finalised by October 30, according to local reports.

Argentina comprises a key part of the ‘lithium triangle’ in South America, a region rich in lithium brine deposits that also encompasses Chile and Bolivia.

The lithium triangle is estimated to account for approximately 60 per cent of the world’s known deposits.

For context, the WA State Government’s battery and critical minerals profile report estimated the State hosts approximately a quarter of the world’s lithium resources.

Argentina’s proposed tax has emerged as another headwind for WA-based companies with projects in Argentina whose share prices have already been hammered by a sharp downturn in lithium prices since July this year.

This includes Argosy Minerals, Galan Lithium and Lake Resources.

The share prices of these companies has declined by between 30 and 60 per cent since the beginning of July.

Argosy’s core focus is the Rincon lithium project, while Galan is developing the Hombre Muerto West and Candelas projects, and Lake Resources is progressing its flagship Kachi project.