INF 0.00% 5.1¢ infinity lithium corporation limited

Ongoing SP Discussion, page-1364

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    The regulation that the European Union is finalizing to guarantee the supply of the so-called fundamental raw materials, among which is lithium, directly favors mining and industrial projects such as the one in the Valdeflores valley, in Cáceres, or the mine in Cañaveral lithium , which may be eligible to be declared strategic projects. Last Thursday, the European Parliament approved the text of this regulation, which is mandatory for member countries, which offers a whole series of advantages to projects that are declared strategic, a true 'red carpet' in key aspects such as administrative deadlines, the financing or preferential treatment that the authorities of each country will be obliged to give them.

    This legislative project on fundamental raw materials was approved in the European Parliament with 515 votes in favor, 34 against and 28 abstentions. Now the Chamber will defend that text in a negotiation with the Spanish presidency of the Council, from which the final rule will emerge, which may include some modification but not much in substance. It will enter into force 20 days after its publication in the Official Journal of the European Union.

    Less external dependence

    What Europe seeks with this regulation is, basically, to reduce as soon as possible foreign dependence on those raw materials that have been declared "fundamental" by the EU, which in some cases, such as lithium, is extreme. The deadline is 2030 to be able to produce at least 10% of raw strategic raw materials and 50% of processed ones. It expressly mentions lithium as one of the essential raw materials to achieve the objectives of sustainable mobility.

    To this end, a system of recognition of "strategic projects" is established, for the implementation of which all types of facilities will be provided. For a project to be declared strategic, it must meet certain requirements, including that it "contributes significantly to the security of the supply of raw materials in the Union", and that "it is or will be technically viable within a reasonable period of time and that the volume of production can be estimated with a sufficient level of confidence.

    Both the Cáceres and Cañaveral lithium mines seem to fit these two criteria without problems, but in order to be declared strategic projects they must also meet a third, more uncertain condition: that "they be executed in a sustainable manner, particularly in the which refers to the prevention and minimization of social, environmental and climatic impacts, including those affecting water, air and soil.

    Once the new European regulations come into force, the promoter will be able to submit the application as a strategic project to the Commission at any time. In addition to demonstrating that it meets the technical requirements, you must add a plan of "measures to ensure the active involvement of affected communities." In the case of extractive projects, such as the Cáceres lithium mines, also "a plan to improve the environmental situation of the areas after the end of exploitation", and if the mine is on protected land, as is the case of Valdeflores, it is also required to demonstrate "the tangible link between the project and the public interest."

    Advantages

    If the project is finally declared strategic by the Commission, it will be legally given priority status, with a whole series of advantages that member countries will be obliged to comply with. They will be given "the greatest possible national importance", the administrative processing will be accelerated to the maximum and possible judicial procedures for the resolution of disputes must be urgent.

    Facilities are also provided for aspects such as environmental processing, financing and the execution of strategic projects. Ultimately, it is about establishing favorable conditions for these projects to go ahead, and to do so, all administrations are actively involved. The regulation expressly states, in its article 14, that "the Commission and the Member States, as well as the local and regional authorities concerned, shall undertake activities to accelerate and facilitate strategic projects and attract private investments for them." They will also have to provide "administrative support to strategic projects to facilitate their rapid and effective execution", including providing them with public resources.

    A maximum period of two years to authorize the extraction of essential minerals

    The European regulation on fundamental raw materials does not remain only in general concepts, but gives specific instructions to the States, especially with regard to the reduction of the administrative deadlines that they will have to apply to projects that are declared strategic. Thus, the duration of the authorization process may not exceed 24 months for projects that require extraction, and if these projects are already being processed when they are declared strategic, as would be the case of the Cáceres lithium mines, this maximum period will not exceed 21 months. During this procedure, once the project requests the environmental impact declaration, the administration will have only 20 days to communicate what information must be included in the environmental report, and in addition "the competent national authority" must "guide" the promoter throughout the process. Once all the information is received, the environmental impact statement will have to be issued within a maximum period of 80 days. When the project receives all permits to begin operating, the support work of the States does not end. Both the central government and the regional and local administrations will be obliged to provide them with assistance to fulfill their administrative obligations, and in any case to give them priority over other files that do not have this strategic declaration. This has already provoked some criticism, such as that of the National Association of Aggregate Manufacturers of Spain,


 
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