https://www.*.co.uk/columns/sp-angel/30222/today...

https://www.*.co.uk/columns/sp-ange...highlights-major-deficit-in-nickel-30222.html

China Lithium carbonate 99% US$10,068/t vs US$9,894/t

• Argentina’s decision to tax primary exports will impact future lithium projects across one of principal countries in the global ‘lithium triangle’, just as the country is ramping up efforts to mine its sizable resources of the white, light metal essential to rechargeable batteries.
• The government said this week it will put a levy on shipments of lithium at three pesos per dollar until 2020. That will be equal to an 8-10% tax on sales, on top of the royalty of about 3% that mining companies pay the government, Credit Suisse Group AG analysts said in a note Wednesday. The tax could potentially delay investment decisions, although it shouldn’t affect some existing expansions, Credit Suisse said.
• Argentina holds the world’s largest identified lithium resource, but it trails Australia and Chile in terms of production, according to the U.S. Geological Survey. Over the last few months, established miners and junior companies have started to build and expand lithium operations in its salt flats.
• Country has ~200 lithium projects under construction or exploration and needs foreign investment to help spur economic growth; between 2015-2017, country experienced a 29% increase in exploration activity.
• However, Argentina’s national mining secretary Carolina Sanchez insists the nation remains attractive for foreign investment, citing no evidence mining investors have been deterred by the decision to impose a temporary levy on shipments of lithium by existing producers until 2020. The nation’s output is expected to rise to ~70ktpa lithium carbonate equivalent from ~25ktpa from two existing projects, with additional production forecast from growing number of projects in development.