iShares 10-20 Year Treasury Bond ETF T.TLH

"Saudi Arabia of Lithium"? Chile!

[Satman3]

Great article on the countries with the largest deposits of Lithium, TLH has a huge stake in Chile and has the 'Salares 7' project consists of 117,904 hectares (117.9 sq km) with 39,404 hectares (394 sq km) of exploration potential solely within actual salares/brine lakes. The company believes this is one of the largest land and pure salare concession packages in the lithium exploration sector.

Who is going to become the "Saudi Arabia of Lithium"
With demand for the metal set to grow as car makers increasingly look to lithium as a fuel solution, so Chile, Bolivia and Afghanistan are emerging as the giants of lithium resources
Author: Lara Smith
Posted: Wednesday , 01 Dec 2010

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Technological advances driving lithium market onwards

JOHANNESBURG -
As automakers and battery companies are scrambling to develop the most economic and effective battery power fuel solution, questions are being asked about whether current deposits can meet projected demand for the electric vehicle market.
Chile's SQM, the global leader in lithium carbonate supply believes that there are more than enough resources to satisfy future demand from electric vehicles. According to SQM, considering current players' capacity expansion plans, the market will remain well supplied over the next 15 years, even for an optimistic scenario of demand growth for electric cars. On the other extreme side of the spectrum are a host of countries and resource companies alike who believe that unless other lithium mining resources are unlocked demand from the electrical vehicle market will throw the market into a severe shortage.
Two countries, Bolivia and Afghanistan, both with exigent political circumstances, appear to be vying for the title "Saudi Arabia of Lithium". Afghanistan has been involved in seemingly endless wars, first with Russia in the late seventies and now the US and Britain. In 2001, the US military's Operation Enduring Freedom was launched, along with the British military, in response to the September 11, 2001 attacks on the US. The countries have been embroiled in a war ever since with no end in sight. It was during the US occupation in 2004 that US geologists began exploring Afghanistan's mineral resources. In June 2010 the US announced that it had discovered nearly $1tn of untapped mineral deposits in Afghanistan, including vast lithium resources.
According to US geologists and the Pentagon there are vast brine reserves in the salt lakes of Ghanzi province in Western Afghanistan, enough to make Afghanistan the "Saudi Arabia of Lithium". This term was originally coined to refer to Bolivia's Salar de Uyuni which is estimated to contain 9m tonnes of brine.
Bolivia, though not in a war situation, has failed to attract foreign direct investment (FDI) owing largely to nationalist government policies. Bolivia was rated 'Repressed' by the 2010 Index of Economic Freedom. The index consists of a series of 10 economic measurements designed to establish the degree of economic freedom in a particular country. Bolivian President Evo Morales, the leader of the Movimiento al Socialismo, (Movement for Socialism) is also widely regarded as hostile towards European and American businesses. Bolivia boasts the largest brine source in the world, Salar de Uyuni and foreign corporations and governments alike are lining up to court the Bolivian government with the intent of gaining access to their vast resources.
Bolivia's capacity to implement large scale commercial production of lithium without international partnership is highly unlikely and until a political decision is forthcoming, commercial scale development of Salar de Uyuni will remain uncertain.
Chile has consistently maintained its position in the world mineral economy as a leading supplier of many raw minerals, ores, and concentrates. The country remains one of the most stable and prosperous nations in South America, leading in human development, competitiveness, income per capita, globalization, economic freedom, and low perception of corruption. Chile lays claim to the world's largest actively mined brine resource, Salar de Atacama and consequently is the world's leading producer of lithium (in the form of lithium carbonate), accounting for about 42% of global mine production.
As the lithium market is poised for greater growth, driven by demand from the electrical vehicles market, Chile will continue to dominate lithium carbonate supply. Even with enormous amounts of resources, both Bolivia and Afghanistan are besieged with severe political and infrastructure challenges.
Author: Core Consultants Email: [e-mail]