Hello colleagues,a brief summary about the STEP 2023 in Argentina (voting is mandatory. 2 monthsto go before the presidential elections)
The clear winnerhas been Milei, of liberal thought, who does not agree with state interventionin the market, interventionism or the management of resources by the publicsector. It considers, therefore, that the economic development of a countrymust come from the hand of the private sector. He believes that lithium shouldplay a very important role in the development of Argentina in the coming yearsand that they should get foreign financing. He is also in favor of adding valueto the lithium chain in Argentina, that is, not only being a country wherelithium is extracted but having companies, factories, dedicated to thetransformation of lithium as a mineral into other products of more value.
If we look at themap, in the province of Catamarca the party "Union for theFatherland" has won, I will not go into the ideological differences ofthese two parties, I am more interested in the difference between their twocandidates; Sergio Massa and Juan Grabois. Luckily for everyone, Grabois onlygot 5.9% of the vote. He is a strong advocate of the nationalization of lithiumand that the extraction of this mineral must go through the management of apublic company. He has been seen in several interviews chatting amicablytogether with Evo Morales, president of Bolivia, where we all know what happenswith lithium and its management.
On the otherhand, Sergio Massa, defends that mining in Argentina will enjoy high growth inhis country. He has obtained several agreements with Chinese companies orhelped them in negotiations with Argentine institutions, in several sectors,not only in mining, mainly in the region of Salta, but also in Catamarca andJujuy. Works of all kinds; trains, electricity, water, roads and mostimportantly a gas pipeline, but as I say, it has also secured some 4 billion ininvestment from Tibet Summit, Ganfeng and Tsingshan for lithiumextraction.It is also in the ideological branch of Milei in that lithium should not only be extracted and exported, but that the lithium value added chain in Argentina should be promoted.
Finally"together for change" that do not manage to change anything.Nationalization of lithium. Government price intervention in markets; food,rent, gasoline, lithium... Messages that no longer reach Argentines.
This is thepolitical map of Argentina today and its ideological and economic orientationtowards the private sector, specifically towards lithium extraction. Any otherconversation that tries to relate the model of Chile or Bolivia with that ofArgentina regarding lithium, are fallacies.
Add that theroyalties that communities can charge private companies in the mining sector reachup to 3%, a fairly low value, so the governments of these communities (Jujuy,Catamarca and Salta) try to get the companies involved to invest in publicsectors of their community. If you remember, Galán has already made this stepby investing in medical equipment for hospitals and in associations for socialsecurity, pensions and decent working conditions for miners (social securityincludes the relatives of miners).It seems that this step of investment in the public sector is an unwritten obligation.
Let you an interesting video about what will face Milei if, finally, he's president. (in spanish) www.youtube.com/watch?v=lOFGlIS27T8
(20min delay)