Argentine province moves forward with the suspension of lithium exploration permits

In Tuesday’s official gazette, the province of La Rioja suspended 23 prospecting, prospecting, and exploration permits that would have been granted by the mining authority in the areas of interest after enacting the law that enables this suspension.

This decision is part of a debate in the Argentinean political leadership regarding how to exploit lithium resources.

In addition, the province governed by Ricardo Quintela resolved to establish “a strategic vision for the development of lithium production in our province, one of whose main actions is to establish areas of interest for such purposes with the effects foreseen in the aforementioned legal provision”.

A provincial company will now explore these zones.

This decision contradicts the position of the three provinces that make up the lithium round table (Catamarca, Jujuy, and Salta) and are more advanced in developing this mineral, which is opposed to declaring lithium as a strategic resource.

Business chambers rejected the measure.

THE DETAILS OF THE MEASURE

In the decree published this Tuesday, which aligns with the Law approved in mid-January in La Rioja, the province resolved that “the prospecting and exploration permits that have been granted by the mining authority in the areas of interest will expire”.

And it defined the 23 zones of interest in question.

BUSINESS REJECTION

At the time of the debate in the legislature of La Rioja, different business chambers expressed their rejection of the Law.

The Argentine Chamber of Mining Entrepreneurs (CAEM) stated that “suspending concessions and permits damages the possibilities of future socioeconomic development”.

The Argentine Industrial Union (UIA) also expressed its concern about the negative impact of this Law.

It said that “it attempts against the challenge that the country has in terms of development”.

With information from Bloomberg

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