Chile’s nationalisation move could benefit Canada – explorer

25th April 2023

By: Mariaan Webb

Creamer Media Senior Deputy Editor Online


Font size: - +

The move by the government of Chile to demand a controlling stake in all future lithium projects could be a boost for countries with large resources that are deemed more investment friendly, says Quebec-focused explorer Arbor Metals.

The nationalisation of lithium deposits in Chile and Mexico will “hasten a shift in future investments in lithium projects to other countries that are recognised as safe havens, such as Canada”, says the TSX-V-listed junior, which owns the Jarnet project, in the James Bay region.

The company notes that Quebec ranks second in Canada and sixth globally in the Fraser Institute’s 2021 top jurisdictions for investment based on the Investment Attractiveness Index.

Last week, President Gabriel Boric announced that he would nationalise Chile’s lithium industry, which is the world’s second-biggest producer of the metal, to boost its economy and protect its environment. Mexico last year also nationalised its lithium deposits.

Canadian mining billionaire Robert Friedland has also warned that the Chilean government’s plan will make it harder to invest in Chile, undermining the country’s reputation as one of the safer places for foreign investors in Latin America.

Arbor believes that the exploration for and development of lithium projects in northern Quebec will benefit from these, and other, announcements, such as the substantial investment plans of automotive giant Volkswagen’s to build a large-scale new electric vehicle battery plant in St Thomas, Ontario.

The junior also welcomed the news that the Sayona mine, near La Corne in the Abitibi region of Quebec, has started operations and that North Carolina’s Piedmont Lithium has reopened the North American lithium mine in late March.

Arbor states that it plans to expedite its exploration plans for its Jarnet lithium project.

Encompassing roughly 3 759 ha, the Jarnet project is comprised of 70 map-designated claims. The Jarnet South block is located less than 2 km northwest of Patriot Battery Metals’ CV-5 pegmatite target, where an intensive diamond drill programme is currently under way and has led to several noteworthy discoveries.

Edited by Creamer Media Reporter




Sandvik automation image
Sandvik Mining and Rock Solutions

Sandvik Mining and Rock Solutions products and services provide you maximum value in terms of performance, quality, safety, flexibility and not...

SMS group
SMS group

At SMS group, we have made it our mission to create a carbon-neutral and sustainable metals industry.


Latest Multimedia

sponsored by

Photo of Martin Creamer
ARM, GoldOre, Gautrain make headlines
22nd September 2023
Magazine cover image
Magazine round up | 22 September 2023
22nd September 2023
Resources Watch image
Resources Watch
21st September 2023

Option 1 (equivalent of R125 a month):

Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format

Option 2 (equivalent of R375 a month):

All benefits from Option 1
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.

Already a subscriber?

Forgotten your password?







sq:0.091 0.126s - 92pq - 2rq
Subscribe Now