Mexico's mining chamber: Ganfeng lithium concessions
The President of Mexico's mining chamber, Jaime Gutierrez, has stated that Mexico lacks the legal authority to revoke concessions granted to China's Ganfeng Lithium.
This recent revelation came as the Mexican government seeks to enhance control over its potentially valuable lithium reserves.
Ganfeng Lithium, a major player in the lithium industry, disclosed in a filing last August that Mexican mining authorities had notified its local subsidiaries of the cancellation of nine concessions. This action was taken in response to Mexico's comprehensive lithium nationalisation effort implemented last year, aimed at ensuring the country benefits from the growing demand for this essential metal, highly sought after by global rechargeable battery manufacturers.
Jaime Gutierrez expressed, "I do not believe it is possible to cancel concessions under the law." He added that concessions granted prior to the lithium nationalization should remain unchanged, as the law does not have a retroactive effect.
Despite indications of substantial lithium deposits, Mexico has not yet commenced lithium production. One of the cancelled concessions pertains to an open-pit project in the state of Sonora, which Ganfeng claims to hold approximately 8.82 million metric tons of lithium carbonate equivalent.
The Mexican government initiated a review of Ganfeng's concessions and requested evidence of compliance with investment obligations by its local subsidiaries from 2017 to 2021, as disclosed by the company in its filing. Although the evidence was submitted in May, Mexican authorities proceeded with the cancellation of the concessions.
