Argentine government representatives recently traveled to Europe to promote the country’s rich mineral resources to prospective investors.
Mining Secretary Flavia Royon and governors from the lithium-producing provinces of Catamarca, Jujuy, San Juan and Salta met with German Parliament members on Feb. 1. The officials then made their way to Belgium this week where they spoke with the European Commission.
The primary meeting in Germany was held in front of more than 140 investors, mining industry leaders and other influential government figures.
“During this meeting, the Ministry of Mining, in collaboration with the governors and representatives of the business sector, eloquently presented the capabilities of our country as a safe, reliable and sustainable supplier in the mining and critical minerals industry,” Royon’s office said in a media release.
German officials showed a particular interest in Argentina’s lithium and copper resources. Representatives from the Economic Affairs Committee of the German Chamber of Deputies will visit Argentina next month. The goal will be to foster further cooperation in developing the nation’s resources for mutual benefit.
“The governors present gave a detailed presentation on the vast potential of assets in their respective provinces,” Royon’s office said. The statement highlighted “the remarkable progress made in a short period of time and the considerable potential they possess.”
Royon spoke with Franziska Brantner, Germany’s State Secretary for Economic Affairs and Climate Action, at a mining conference in Berlin’s Argentine Embassy. Ignacio Lamothe, Secretary General of Argentina’s Federal Investment Council, travelled to Europe with Royon and the governors as well.
Participé en la Conferencia sobre Minería y Materiales Críticos realizada esta mañana en las instalaciones de la Embajada Argentina en Berlín. pic.twitter.com/k7eTYSP1v3
— Flavia Royon (@FlaviaRoyon) February 1, 2024
Argentina is key to EU minimizing supply chain risks
The Delegation of the European Union to Argentina has emphasized the importance of critical and raw materials for an assortment of applications. These include “the net-zero industry,” aerospace, and defense.
It says the South American nation is key to mitigating supply chain risks.
“Strategic partnerships on raw material value chains with third countries such as Argentina are key in achieving this,” reads the EU news release.
Argentina observed its highest rate of mineral exploration in a decade during 2022. About US$370 million was spent throughout the country that year and the nation’s cash flow from mining shows no signs of slowing.
Mining companies from various nations and major automotive manufacturers have collectively invested billions in the country this year alone, particularly in lithium production. Some analysts have predicted that by 2040 Argentina’s lithium industry will be worth over 29 times as much as it is now.
Taking this into consideration, early-stage lithium resource developers in the country like Argentina Lithium & Energy Corp. (TSX-V: LIT) (OTCQX: LILIF), Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) and Galan Lithium Limited (ASX: GLN) are potentially lucrative long-term investment prospects.
Despite the commodity’s low price at the moment, lithium is the fastest-growing segment of the country’s mining industry.
Argentina is estimated to have 98 million tons of lithium carbonate equivalent resources.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage