In case anyone missed it. We are in Catamarca near Neo LIthium.
On October 5, 2021, the leading provinces of the lithium industry in Argentina, Salta, Jujuy, and Catamarca, signed the interprovincial treaty (the “Treaty”) which creates the Lithium Mining Region to promote the economic and social development resulting from the extraction, production, industrialization and commercialization of the mineral, its products, and derivatives.
The interprovincial treaties are provided in article 125 of the National Constitution as an instrument that enables the provinces to create regions for the economic and social development and establish the competent bodies to fulfill their purposes.
In this context, the Regional Lithium Committee (Mesa Regional del Litio) was created as a result of prior efforts to establish a forum to outline uniform strategies, encourage regional competitiveness and investments, and develop the supply chain of lithium. It will serve as a common space for the academic, institutional, and corporate sectors to discuss the applicable regulations and standards as well as the lithium’s price evolution in the local and foreign markets. The federal government has endorsed the initiative and integrates the Regional Lithium Committee.
Thus, the joint efforts of the three neighboring provinces that have a prominent role in the lithium sector will create the appropriate conditions to promote investments across the Lithium Mining Region by setting clear rules and stable regulations.
Argentina is the fourth world lithium producer and could become the main world’s producer due to its large existing reserves and a favorable legislation which provides a limited intervention of the State. Moreover, there is an increased demand for lithium due to the global need for electric transportation and renewable energies, among others, in accordance with the international agreements. Hence, the Treaty can increase Argentina's potential to become the first global lithium provider.
Finally, the Treaty will enter into force after being ratified by the legislatures of the signatory provinces and approved by the National Congress. It should be noted that on November 16, 2021, the Chamber of Deputies of the Province of Salta passed the law approving the Treaty.