everyone talks about lithiumactually give their opinion based on the numbers: the mining investments produced in the last 4 years in the province of Salta exceeds 3800 million dollarswhere capitals of Chinese, Canadian, American, French, Korean, Australian origin, among others, stand out.
The boom in activity, which to date in Salta registers 3 lithium projects under construction, 8 in pilot plant and 28 in exploration, boosted the growth of employment generating 4,265 direct jobs, of which 896 are occupied by women. To this is added a multiplicity of actors related to the entire value chain, with 316 registered in the Provincial Registry of Local Suppliers of Mining Companies of Salta.
Lithium, a mining resource that recalls past conflicts in Argentina
Few know the Puna Regiontheir needs, their postponements, their identity character for the general population of their provinces.
Lithium: strategic interest
Some propose, ignoring the activity, the declaration of an abstract “national strategic interest” activity, reserves, or anything that sounds like lithium.
There is no regulation that regulates and establishes what such a statement means or that determines what rights and obligations this implies. Nor does it arise from the projects, nor from the proposals. However, despite this dangerous abstraction, there are legislative proposals, projects or drafts that make the statement in question, without explaining what does it mean.
In this regard, it would be appropriate differentiate on the one hand the mining activity itself, and on the other hand industry development of batteries, or the development of electro-mobility.
Why lithium is the great Argentine opportunity
Strategic interest means grammatically, an activity that is given great political, economic or social importance, beyond individual interest. Something that deserves special attention according to specific purposes and objectives. This would imply some type of more intense regulations, privileges, change of ownership in management, etc.
It should be remembered that the growth of the activity under analysis in our country has already been developing due to a planned strategic interest, currently in full execution, from the I have been working for many years synergistically between government, communities and private capital.
The exploration concessions, which are later transformed into exploitation concessions, were granted several years ago. in the last 15 years the area covered with mining properties has grown by almost 150%. For example, after 25 years of exploration, Lindero (gold/silver) was commissioned, which today is the only producing project in Salta.
Regarding Lithium, Salta is the province with the largest number of projects under exploration, three of them going through the first stages to consolidate today in the construction phase and the forecast that they begin to produce in the year 2024.
Lithium, a critical mineral for development
These concessions generated large investments, planning, business development, payment of taxes, and from which the businessmen have not yet obtained profits. This economic development, in which even without producing and obtaining profits generates jobs, infrastructure development and social capital, responds to regional growth strategies.
In this sense, in 2020, Salta, Jujuy and Catamarcathe t’sthree provinces in which lithium is obtained, formed from certain areas of their territory, the Lithium Region. This space for economic and social development is a tool enabled by the National Constitution of 1994, in its article 124.
The conformation of the Lithium Region it complied with the constitutional steps: it was approved by the three legislatures, and sent for the knowledge of the National Congress. This conformation is a strategic decision of high institutional, legal and economic flight of the three provinces, to promote the development of the activity.
So that there is no shortage of lithium, US$ 51,000 million in investments are needed
That is to say, the provinces, who are the owners of the subsoil, have the legal domain, and are authorized to grant it in concession, for years they have been working in a sense of strategic interest, not only local, but at a regional level, and with the knowledge of Congress National.
This region has as administrative bodies the so-called “lithium table”where the provincial governments, communities, national state agencies participate, and now the private mining sectors and providers of this activity were invited.
The strategic interest of the sector has been developing for a long time, with specific policies and activities.
On the other hand, as previously mentioned, the development of electromobility Currently, it does not have any type of development in the country, and it does a promotional development of the automotive industry, regarding which, the federal government has tools, competences, and perspectives to generate growth in the activity.
These aspects in which the federal government, (mining activity) cannot intervene, since it does not have jurisdiction, domain, or promotional tools.
It would be a serious mistake for the latter to advance on the activity by entering through the window, meddling with respect to something that does not belong to him or understand. An intervention with ignorance of the activity and the important work carried out, based more on an ideological prejudice than on a true strategic planning.
Does the declaration of “strategic interest” imply expropriating the companies that are currently operating the activity? A quick estimate can be made according to the level of investment made in the 3 provinces, with respect to an eventual payment for expropriation, it would cost thousands of millions of dollars. Does this have something strategic?
Battery
It should be remembered that in the development of the famous battery, although the lithium constitutes an essential and irreplaceable input, represents only 1% of the contained volume and approximately e3% of the final cost (data provided by the document “From lithium to battery: analysis of the Argentine position. CCE Working Documents No. 16, October 2021, Council for Structural Change – Ministry of Productive Development of the Nation), for which of the resource is not enough to advance in the value chain towards instances of manufacture of batteries or their parts.
The rest of the components like sulfur, manganese, nickel, cobalt, copper, among others, are not produced on the necessary scale in our countryand its transport and logistical development are of a very high cost at present.
However, the challenge is to be able to overcome this logistical, production and technological knowledge problem. In this matter, it would be very useful to develop national policies within the possibilities of the exchange rate regime, which allow imports to be unblocked and currency transfers possible.
Lithium and participatory procedures
Another aspect to highlight is the extensive and previous participatory procedures that are planned in the activity. The province of Salta has established by Resolution 235/18 of the Ministry of Mining, holding social tables with the different native communities. Said process consists of a space for dialogue between the original communities, the mining companies and the Provincial State, where each of the parties presents their proposals, concerns and needs, with the aim of achieving a public-private articulation.
By Resolution No. 04/18 of the Ministry of Mining, participatory environmental monitoring was established. Representatives of the native communities, technicians from the mining companies and the Ministry of Mining participate in said procedure. are taken air, water and soil samples, whose results are shared and made available to the former. To participate in it, it is convened well in advance and the communities are the ones who designate their representatives to whom it is explained what is going to be done and the steps to follow in taking each sample.
Public hearings and prior consultations are carried out for projects whose stages so warrant, in accordance with the terms provided in the Ley Provincial 7070; giving due participation to the competent Bodies.
In all stages of mining projects, communication and linkage plans with the original communities and presentation of the projected activities are required prior to carrying them out, which is established as an obligation in the Environmental Impact Statements (DIA).
Conclusion
Lithium ore and its extraction have not only been developed and treated strategically for years in the country, but also with intelligent and effective economic and social planning. The mineral, with the treatment given to it, acquires no less added value.
This virtuous policy of developing an activity, which is carried out harmonizing different jurisdictions, political belongings and temporary governments, is a true state policy, of which so much is claimed in our country. It must be completed by a national state policy that establishes and outlines the virtuous value chaina, through the development of electro-mobility.
Strategic development cannot be an empty, ideological word or a concealer of obscure interests, but a serious, intelligent and studied decision-making, which is oriented towards the development of goals and objectives that transcend individual, sectoral or ideological interests.
The lithium strategy for years is already underway.