 | Get all the essential market news and expert opinions in one place with our daily newsletter. Receive a comprehensive recap of the day's top stories directly to your inbox. Sign up here! |
While not welcomed by many investors, Wealth Minerals CEO Henk Van Alphen said that the proposed changes to Chile's lithium sector clears up ambiguity and provides a way forward.
On Friday Alphen spoke to Kitco at Deutsche Goldmesse 2023 spring show in Frankfurt, Germany.
Last month Chile's President Gabriel Boric said he would nationalize the country's lithium industry, the world's second largest producer of the metal essential in electric vehicle batteries, according to a report by Reuters. Future lithium contracts would only be issued as public-private partnerships with state control. Investors didn't like the change. Lithium giant Sociedad Quimica y Minera de Chile (SQM) dropped 18%, and Albemarle slid 10% on the day the news broke.
Alphen said the industry was stuck trying to advance new projects, and the government's proposed changes are a path forward.
"[Nothing] has happened in the last six years," said Alphen. "[We] may have to give up a majority but at least there's a way to move forward. They're very keen on getting stuff to happen ASAP. For us it's moving forward."
Wealth Minerals (TSX.V: WML) is focused on three projects.
The company's Atacama project in Chile is Wealth’s flagship lithium project. The company says the project is directly north of world-class production assets, which account for 25% of global lithium production.
Wealth's Ollagüe project is also in Chile. The company says the project can be brought to production quickly. Wealth expects to announce a preliminary economic assessment on the project this year.
Outside lithium but still within the critical metal space is the company's Kootenay project in B.C., which has nickel and copper mineralization. The company has funded an exploration program for the property for the 2023 season.
Coverage of Deutsche Goldmesse 2023 sponsored by Defiance Silver.
