Mexico not able to cancel Ganfeng Lithium concessions, chamber says

27th September 2023 By: Reuters

MEXICO CITY - The president of Mexico's mining chamber Jaime Gutierrez does not believe it is possible for the government to cancel concessions for China's Ganfeng Lithium under the law, he said during a press conference on Wednesday.

Lithium giant Ganfeng said in a filing dated August 29 that Mexico's mining authorities had issued a notice to its local subsidiaries indicating nine of its lithium concessions had been canceled.

Last year, the Mexican government enacted a sweeping lithium nationalization aiming to ensure the country profits from surging demand for the ultra-light metal.

Gutierrez said concessions granted before the lithium nationalization should not be altered, as the law is not retroactive.

Mexico's economy ministry did not immediately reply to a request for comment on the canceled concessions.

Since he took office in late 2018, President Andres Manuel Lopez Obrador has refused to offer any new mining concessions, arguing that too many had been granted by previous governments.