Peru wants to seize lithium 'window of opportunity,' says minister (updated)

American Lithium

27/04/2023 19:38

(Adds detail, background)
       LIMA, April 27 (Reuters) - Peru's economy minister on
Thursday said "conditions were being established" to develop
lithium mining projects in the country, a week after Chile
launched a plan to boost state control of the industry.
        "A window of opportunity has opened and we want to take
advantage of it," said Economy Minister Alex Contreras, saying
that there was "a lot of interest" in speeding up development in
Peru as decisions in other countries were spooking investors.
  
        Contreras declined to give further detail on what
projects were being developed in Peru.
  
        The world's second largest copper producer, Peru
currently has a lithium exploration project in the region of
Puno, on the border with Bolivia, run by Macusani Yellowcake, a
subsidiary of Canada's American Lithium Corp  LI.V .
        Nearby Chile, Argentina and Bolivia form the so-called
"lithium triangle," which is believed to contain more than half
the world's resources across its extensive salt flats. 
  
        Prices for the metal - key for powering electric
vehicles - have however dipped from last year's records amid
high output and weaker Chinese demand.
  
        Chile's move follows a sweeping lithium nationalization
plan enacted by Mexico last year, while Bolivia's ruling
socialists have also favored state control, though it is
counting on Chinese partners to unlock its huge but untapped
reserves.
  
        "There are investors interested, not only in lithium but
in different economic sectors," said Contreras, saying other
industries could benefit from potential investment in lithium
battery plants.
  
        New mining operations should be key to growing the
nation's economy by an average of 3% annually over the coming
years, he added. Peru's government has trimmed down its economic
growth forecast to 2.5% for this year.
  
        Peru's mining sector has been hit by extended nationwide
protests following the ousting of former President Pedro
Castillo in December last year.
  
        Contreras predicted a fiscal deficit of 2.1% of the
country's gross domestic product (GDP) this year, adding that
private investment in the country was expected to fall in 2023
for a second year in a row.
  

 (Reporting by Marco Aquino; Writing by Sarah Morland and Isabel
Woodford; Editing by Brendan O'Boyle and Diane Craft)
 ((Isabel.Woodford@thomsonreuters.com;))