PERUMIN 34: Radio "El Puerto" interviewed Ulise Solishttps://www.facebook.com/elpuertonoticiasilo/videos/849086398819075/?video_source=permalink
Friends of “El Puerto Noticias”, we are in Perumin, Perumin 34, one more edition here in the “White City” of Arequipa that has brought together investors from Peru and around the world. This is the second most important world fair and for that we are here with Mr. Ulises Raul Solis of the company Macusani Yellowcake.
Mr. Solis, how are you, we are here from Ilo, for radio “El Puerto”, “El Puerto Noticias”, the only media outlet in the Moquegua region.
Very good. Thank you very much, greetings to all your viewers and, what better, I am from Ilo, you know it, so doing a little for our homeland here, in Arequipa.
How is this idea of you and the presence in Perumin born?
Well, I'm a manager of a mining company called Macusani Yellowcake in Peru, in Canada it's called Plateau Energy Metals. We are the only company that is currently exploring for lithium. We already have a vast resource of this mineral, we are at 4.7 million tons of lithium carbonate equivalent and ... nothing, we are still working, we have started our environmental impact study, our PEA must be presented this end of September or the first week of October, and we are converting our resources to reserves and continuing with the mining exploration work.
And this project, where will it be executed?
Exactly in the district of Corani, in the department of Puno. It is a fairly poor district, we are working on 4,800 meters above sea level; there is no agriculture there, there are no rivers or lakes to destroy, to disturb, so the conditions are very favorable. We have water, which rains every day, there is no agriculture, under 4,5000 meters there is only the native potato; in this area there is only livestock, but alpaca livestock, right? We live with the community members, we are in the area, we have good relations with the communities, we have five peasant communities, all of direct influence. So we believe that the project has all the conditions to get ahead, there is energy, we have San Gaban at a short distance. As I repeat again ... we have the transoceanic that takes us to our point of exploration, very soon of exploitation. So the conditions for this project to come true are given.
It is an important initiative. When is this project born? What stage are you in? And when would it be implemented?
Well, we are actually exploring since 2006, but we were exploring for uranium. We have always seen the existence of lithium, as of December 2016 we had 124 million pounds of uranium as resources and only 175 thousand tons of lithium carbonate. That is, there was lithium, and we knew there was a deposit... why? because the geological features denoted it. Until we enter the Chacaconiza community for the first time, we entered with a single drilling machine, and found the lithium deposit. That lithium deposit we plan to exploit now, now, right now, we think that in 2022 should be in operation, it will be fast. And then we will see what we will do with uranium, we also have to exploit it too. But, little by little, isn't it? It's like eating salame, little by little we have to eat the cake.
Perfect. And lithium is a mineral that Bolivia also has.
Of course, in South America there is the triangle of lithium. The lithium triangle is made up of Chile, Argentina and Bolivia, but in salt flats, which is totally different from Peruvian lithium. Peruvian lithium is in rock, we have found a mining deposit, in rock. We are going to do conventional mining, such as the open pit of Toquepala (Southern Copper Corporation)...
Open pit.
Open pit, it will be an open pit like Toquepala, in rock. Well, they produce copper, we are going to produce lithium, right?
And there will be a concentrator,... all that.
Of course, there is going to be a concentrator, we have to produce the lithium carbonate and if the authorities, the permits facilitate it, then go to a battery factory, right?, which is the production of the future. So, that's what we are in, that's what we're aiming at. I repeat again, community relations are good and I think that is the main thing. The governor of Puno has also had a lot of affinity with the project, unfortunately he is now detained, but the new governor is also very pro-mining, pro-investment, proactive. And something that is good, and you should know, Puno does not have a mining project at this time. There is the San Rafael mining operation, since many years ago, but a new mining project there isn’t. Then this mining project will bring many benefits to the Puno region.
How many jobs do you estimate?
It is a mine that must have at least two thousand jobs, like Toquepala, like Southern, right? That is the direct, the indirect is something else.
It is a millionaire project, what amount are we talking about?
We started with US$ 860 million as a project, I think it will be a little more than US$ 800 million investment. But the PEA will give exact numbers this end of the month.
It is a Canadian company with mixed Peruvian capital.
No, it is a company of purely Canadian capitals.
It is important that you can highlight, you are from Ilo by the way, you have investments in Ilo, and we congratulate you for this initiative that is already underway, the development of this important project for the southern region, Puno, and it is also understood that this mineral will have to be exported, hopefully Ilo is the chosen port, right?
There are definitely only two ports to take, Matarani and Ilo. I think it goes without saying where I want it to go, right? (laughs) I am from Ilo, I have investments in Ilo, and what better way to give movement to Ilo, to the port of Ilo.
And how can you have this role, which you are fulfilling, of social responsibility with the communities? How is it that they are now affordable to the company, to you? Unlike the conflicts and social problems that exist, for example, with Tia Maria, or for example now what is happening with Quellaveco. What reading do you have of that?
As my good friend Miguel Inchuustegui once said, if there were a recipe, be assured that everyone would buy it. All communities are different, all of them, you can't do the same job with the different communities that exist in the country. We cannot promise what we will not accomplish, we must not give them more than we can give them. So we have to work with them, we have to teach them what is responsibility too. They do not pay taxes, we do pay taxes; they have not bought the land, the state has given it to them. So if we start from that principle and start educating them and educate ourselves ... because we have to respect them, the superficial land belongs to the communities, whether we like it or not.
Before starting to do a job in the mine we have to knock on the door to the community, we cannot enter without knocking on the door, we have to ask permission, whether we like it or not. Then we have to respect all their ideology, all their customs, their beliefs, dance with them, drink with them, celebrate their birthdays, celebrate their anniversaries, share and live with them. Never give more than we can and do not bribe the authorities. Don Hernando de Soto, who is a great friend of mine, told me, don't bribe the presidents (of the communities), the directors, they change and you already have a bad image. Become friends with the leaders; in every town, in every community there is always a leader, a remarkable neighbor. Then we have to make friends with them, of the authorities of course, and respect them, just respect all their beliefs, whether we like it or not.
That will lead us to have a good relationship with the communities, a good social relationship, and that is what we have done. There is another company in the area, called Bear Creek, which has a silver project, unfortunately the price of silver does not help them, they have done a good social job. So what do I have to do? The worst thing I can do is match them, I can't do anything worse. Thus, the communities there lend themselves to private investment, to mining investment.
Something final, Mr. Solis. Any reading you have about the political situation, regarding projects like Tia Maria, regarding the issue of Quellaveco, which is still there, the project has not been executed but it is in the construction stage.
A very difficult question and unfortunately I say things as they are. We lack a good government. That is the truth, but I cannot say more. It is incredible that people oppose a project as big as Tia Maria, a project that will bring much benefit to Arequipa, which will bring much benefit to Tambo, Islay, to all these provinces that I know, but ... what's up, I don't know, I don't understand. Who are the parades? Who are the marchers? Who are those against mining? Ask yourself that question. All of us who are in favor of the investment are here, fighting, taking out the dirt, but no, people don't want to understand it. Who goes out? And who are interested in the project not coming out? That is the question, I think we should look for the answer.
It's incredible someone says no to mining. We just wanted to be present here, we have come as a media from Ilo because in reality this convention has congregated and congregates Peruvian and world investors, and it is incredible to be able to say no to mining knowing the things it offers, derivatives and industrialization of what mining is, right?
That’s completely true. I do not know why many people who march against mining, why send their children to universities to study geology, mining engineering, metallurgical, and all engineering. Where will they work if there is not going to be mining in this country? There is no work, there is no work, you are seeing it yourself. The economy is in the floor, there is no development and still we are going to close mining projects? What we need is more work and that is what we have to look for.
We say thank you very much to the businessman Ulises Solis for his statements. The company Macusani Yellowcake is betting on development and private investment. Well, we return to studies with more information.