Orocobre has issued a very interesting news release describing the recent changes in Argentina. I would like to use this opportunity and wish to all proud people of Argentina Merry Christmas and Happy New Year! You deserve it - take your country back now!
Please read carefully my legal disclaimer. Please be advised that NI 43-101 qualified person at TNR Gold and International Lithium has not reviewed any data provided by Orocobre and it should not be relied upon in any financial decisions. Please always consult with your preferred qualified financial adviser.
Mr. Kirill Klip, President, International Lithium Corp. comments, “We have always viewed Argentina as a favorable location for mineral exploration and development and have been able to operate in a mutually beneficial manner with the local people and governments. The results of the recent elections have managed to give foreign corporations greater confidence in the future of business and mineral resource development in Argentina. We welcome the change and look forward to working with the newly elected officials and advancing our Mariana lithium brine project in cooperation with our strategic partner, Ganfeng Lithium. Security of lithium supply is becoming more important as witnessed by recent price increases in China, all in advance of the completion of new battery production facilities announced by Tesla and other manufacturers. We continue to build a vertically integrated lithium business with Ganfeng Lithium to meet the future demand of lithium products that will address the increasing demands for lithium raw materials and chemical products.” Read more.
Today I would like to share with you the article written by very talented member of TNR Gold Team Roberto Lara from Argentina. Proud people of Argentina are looking for a change coming to that beautiful country and this report from the ground brings the great energy of the coming spring after the very long winter. Please carefully read my disclaimer and always consult you preferred qualified financial adviser. Read more.
I hope that this excitement will get to our companies as well one day! We are ready, we have not only saved our assets, but built new business in Argentina with Ganfeng Lithium - $2.5 Billon market cap giant from China, which is financing International Lithium Mariana J/V project in Argentina.
TNR Gold And McEwen Mining: Los Azules Copper - Conservative Mauricio Macri Wins Argentina Presidency.
The proud people of Argentina are taking their country back! Nobody knows the future, but now we have the hope that conservative Mauricio Macri will bring his country back where it belongs on the international arena. I expect that now, finally, country risk will become the huge value catalysis.
TNR Gold holds:
1. Royalty in giant Los Azules copper project with McEwen Mining and 1% on Sale of this project;
3. 25.5% in International Lithium, which develops J/V Mariana Lithium project in Argentina being financed by giant from China - Ganfeng Lithium.
Please carefully read my legal disclaimer and you can find all latest financial information about TNR Gold and International Lithium on SEDAR. Please never make any investment decisions without consulting with your preferred qualified financial adviser. Read more.
Brisbane, Australia (FSCwire) - Orocobre Limited (ASX:ORE) (TSX:ORL) wishes to provide guidance on the impact of changes in Argentine Government policy on its business operations in Argentina.
Mauricio Macri was elected as President of Argentina at the final round of elections held on 22 November 2015 and assumed office on 10 December 2015. The election of President Macri represents a significant break with the policies of the previous administration. President Macri and his administration have a stated aim of turning Argentina into an open and free economy, reconnected to the world.
President Macri's administration has moved quickly to implement sweeping changes to lift economic restrictions and controls.
Key changes made that directly benefit the Company's operation in Argentina include:-
- removing the "dollar clamp" to allow the free flow of capital in and out of the country
- effectively allowing the floating of the Argentine peso and ending the artificially high official exchange rate
- eliminating export taxes on almost all agricultural and industrial products, specifically removing the 5% export duty on lithium carbonate and refined boron products
- removal of most controls on the importation of goods into Argentina
The importance to Orocobre of the removal of the dollar clamp at this stage of our operations is of significant importance as not only will the risk of delay in receiving imported equipment and consumables be removed but the removal will permit the free flow of dividends in the future from our operating companies. Previously, export proceeds had to be repatriated to Argentina after payment of debt service obligations but access to foreign exchange for the purchase of equipment, reagents or to pay dividends was restricted. With the changes, companies can access US$2m to December 31 increasing to US$4m from then to the end of May 2016 and unlimited access from the end of May 2016. This has a positive impact on operational matters, the treasury function and the payment of dividends. Although the restrictions on dividend payments had not affected the Company during construction of the Olaroz Lithium Facility, this restriction was a major point of concern with the investment community.
After a long period of a an overvalued AR$, the re-adjustment of the currency to a lower value through the floating exchange rate has improved the competitiveness of our operations, in particular at Borax Argentina where there is a higher proportion of local costs. Our SBLC dollar guarantees against peso loans are also strengthened, creating additional local funding.
The Macri administration has removed or significantly reduced the export retentions (duties) on all agricultural and industrial products. A 5% duty on the Company's high value added lithium carbonate and refined borax products has now been removed. The 10% duty payable on boron mineral concentrates remains in place for the time being.
Finally, the removal of import restrictions which affected the Company during construction will allow for more rapid international sourcing of materials and equipment and will remove the procurement challenges previously encountered by the Company's teams at Olaroz and Borax Argentina.
Orocobre has been working in Argentina since 2006 and has been able to finance, build and operate the Olaroz Lithium Facility, the first new brine based lithium facility in approximately 20 years, high in the northern Andes of Argentina with quite onerous government policy constraints in place. We are very pleased that Argentina now has a government determined to encourage business development and facilitate the country's economic growth.
This change in philosophy and approach is good for Orocobre now and in the future.
About Orocobre Limited
Orocobre Limited is listed on the Australian Securities Exchange and Toronto Stock Exchange (ASX:ORE) (TSX:ORL) (OTCMKTS:OROCF), and is building a substantial Argentinian-based industrial minerals company through the construction and operation of its portfolio of lithium, potash and boron projects and facilities in the Puna region of northern Argentina.
The Company has built, in partnership with Toyota Tsusho Corporation and JEMSE, the first large-scale, greenfield brine based lithium project in 20 years at the Salar de Olaroz with planned production of 17,500 tonnes per annum of low-cost battery grade lithium carbonate."