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clock Created with Sketch. 06/07/22
16:53
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Originally posted by TheGekko:
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Shack, the BIGGEST risk that WAS before LPI over the last few years was sovereign/government risk. Under the new Chilean Government, taking in all the commentary from the new Mining Minister (she is a breath of fresh air) over the last four months, I have never felt so confident about a Chilean administration as this one. They truly get the mining industry. They have not changed the mining tax regime for the lithium sector recognising that the industry is not mature enough. They are supporting small miners with government-funded programs and lower taxation. They will be introducing an advalorem royalty system to apply to the BIG copper miners that is no different to that imposed by Australian state governments on its resources sector participants. The new Chile Government has publicly stated that it WANTs foreign investment and it NEEDS foreign investment.
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Thanks Gekko for your thoughtful and informative response, is much appreciated. Rightly or wrongly I consider the capex (assuming business case stacks up, which per stage 1 npv appears to do so, more a key part of the funding risk. As you rightly point out, Mitsui are a key partner on this front.
