no worries Funky - it was a perfectly ok question, and yes, it is probably legitimate to wonder if they are going to be held to ransom, although that may be a little unfair to the local authorities given the changing nature of their project. The more I read, the more I wonder what permits they actually have. Below is from p222 - delving in to the fine print, and, as usual, the highlights are mine...
That body approved LAC’s Environmental Impact Report for the exploration work of the Cauchari-Olaroz Project (Resolution No. 25/09 on August 26, 2009). There have been subsequent updates to accurately reflect the ongoing exploration program, including a 2009 update IIA (Environmental Impact Indicator, or Indicador de Impacto Ambiental) including topographic and geophysical studies, opening loan wells and new exploration wells. In addition, there was an IIA for the installation of a brine enrichment pilot plant, and in 2011 the renewal of the IIA was presented for the exploration stage, specifying all activities undertaken and planned exploration activities for the 2012-2013 period. An addendum to the IIA for Exploration was submitted in May 2014 for the installation, implementation and subsequent operation of the POSCO lithium phosphate plant which was approved in July 2014 (Resolution 011/2014). And in June 2015 and June 2016 two separate IIA exploration permit addenda were submitted for on-going exploration work. These remained in the approval process and, in agreement with the authority, were replaced in the approval process by the update of the IIA for exploration submitted in February 2017.
...At the end of 2011 an IIA was presented for the operations stage to the enforcement authority of the Province of Jujuy. The preparation of this study was based on the Law No. 24,585: Environmental Protection for Mining Activities (“De la Protección Ambiental para la Actividad Minera”) and the procedures stipulated in Decree No. 5772-P-2010, from the Province of Jujuy Environment Law (“Ley General de Medio Ambiente de la Provincia de Jujuy”) and approved by Resolution 29/2012 on 08 November 2012 based on an initial annual production of 20,000 tonnes of lithium carbonate with a second expansion phase to 40,000 tonnes/year.
A report for the renewal of the permit was submitted in March 2015 based on the same Project description as the initial 2011 filing, which has yet to be approved by the Authority. A further renewal was submitted in February 2017 based on the new Project parameters, and it was agreed with the Authority that this would replace the March 2015 submission.
Plenty of applications - not quite so many approvals. The 2011 process looks like it was ok but it feels like they are now stalled with something less than what is needed in order to operate in spite of the brave talk to the contrary. Applications in process from March 2015 - make of that what you will...
ORE Price at posting:
$3.55 Sentiment: Buy Disclosure: Held