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Thursday, Jul 25, 2024
Mugglehead Magazine
Alternative investment news based in Vancouver, B.C.


POSCO leader visits Argentine economy minister in Buenos Aires to strengthen lithium ties

President Jeong Ki-seop traveled to Chile on Friday too where he met with senior officials from the nation’s mining ministry

POSCO leader visits Argentine economy minister in Buenos Aires to strengthen lithium ties
POSCO President Jeong Ki-seop (left) and Argentina's Economy Minister Luis Caputo in Buenos Aires on Wednesday. Photo credit: POSCO Holdings

Jeong Ki-seop, President of Posco Holdings Inc (KRX: 005490), traveled from South Korea to South America last week to strengthen lithium mining partnerships with officials in Argentina and Chile.

Argentina’s Economy Minister Luis Capoto told Ki-seop that he would help create a more favourable business and investment environment for the company. POSCO already has substantial lithium infrastructure within the nation and wants an even greater footprint.

“We request continuous interest and assistance from the local government so that POSCO Group’s lithium business could be included in the ‘Incentives for Large-Scale Investment’ support program being promoted by the Argentine government,” Ki-seop said. 

If POSCO is authorized to take part in that program it will benefit from significant tax reduction benefits.

The Korean steel manufacturer currently has two lithium operations, one completed processing plant and another under construction in Argentina. Furthermore, the company shares in a joint venture with Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) at the Hombre Muerto North lithium brine resource in Salta. POSCO will have the second plant constructed next year and is aiming to set up a third one, South Korean media outlets say.

POSCO Argentina (a local subsidiary) recently secured a major loan needed to complete the second phase of development at its flagship Sal de Oro project in the Salar del Hombre Muerto salt pan. The company’s newly constructed lithium hydroxide plant is expected to start full-scale production by the end of the year.

It will be capable of supplying 25,000 tons of the chemical per annum. The second plant will have the same capacity once finished. Meanwhile, the third one will be the largest of the three, sources say.

POSCO leader visits Argentine economy minister in Buenos Aires to strengthen lithium ties

POSCO is jointly developing two claim blocks with Lithium South at Hombre Muerto North. Photo: Lithium South Development Corporation

Read more: Lithium South raises $4M in private placement

Read more: Lithium South expands well installation program at Hombre Muerto North

Chilean officials seek POSCO’s help

Officials in Chile have requested that the company assist with development of two major projects in the Altoandinos and Maricunga salt flats.

“There are many opportunities for POSCO Group to participate in new lithium brine development projects that the Chilean government plans to promote,” Chile’s Mining Ministry stated.

POSCO sees the current lithium price slump as long-term investment opportunity.

“We want to use the ‘chasm’ or the recent slowdown in the global EV uptake and mineral price declines as an opportunity to buy good assets such as lithium lakes and mines cheap,” a POSCO representative said.


Lithium South Development Corporation is a sponsor of Mugglehead news coverage 


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