Silence is Golden?
posted on
Aug 18, 2020 01:21AM
I need to credit Al on TOB for first posting the following link. I had seen the article earlier, but didn't get around to posting it. Al is always the consumate researcher when it comes to LAC.
https://www.mining.com/lithium-americas-to-restart-argentina-project/
"The mine would achieve full production before the end of 2022, continuing to generate 40,000 tonnes per year from 2023 to 2060.
The projections were made before covid-19 hit the world economy. The company is now reviewing the impacts of the project’s suspensions on the timeline and budget. It said it would provide an update once those assessments had been completed."
So, of course, the updated post assessment statement will revise the Timeline as expected in response to the delay in construction at Cauchari-Olaroz.
Notice in perusing this article that there is an important subject completely absent from any mention in this article: The Government of Jujuy Province, Argentina and its indictment of Minera Exar on criminal charges for not complying with the restrictions imposed on the mining industry in Jujuy Province earlier this year due to the Corona virus situation. I have not heard anything about those criminal charges being dismissed. Is there any investor in LAC who has updated information about those criminal charges?
Just for completeness, let us examine closely the article by Cecilia Jamasmie and see exactly what she had to say about LAC, Cauchari-Olaroz and the Corona virus situation:
_____________________________________________________________________
"The company, which is developing the asset with the help of China’s Ganfeng Lithium, had to suspend construction at Caucharí-Olaroz again in early July after two workers tested positive for covid-19.
“We remain focused on protecting our workers and communities, while coordinating closely with the province of Jujuy to ensure we operate responsibly and safely as we begin to restart construction activities over the next few weeks,” president and chief executive Jon Evans said while delivering second-quarter results.
______________________________________________________________________
Well, now... how 'bout them apples? No mention of Minera Exar and the criminal indictments. No mention of the relationship of Ganfeng/Lithium Americas AND Minera Exar and no mention of how Minera Exar is accused of being one of the few, possibly the only, mining operation in Jujuy Province who blatantly continued to operate in violation of the restrictions placed upon all mining operations in Jujuy Province by the Provincial government. Hmmm.... a convenient silence on the subject, wouldn't you agree?
Apparently Jon Evans and LAC's official position is to ignore this "crimina charge" against Minera Exar in the hope that it will go away. What would you bet that some very high priced lawyers financed by both Ganfeng and LAC have created a long line to the Halls of Justice in Jujuy Province pleading the case for dismissal of those "criminal charges"?
Maybe some sub rosa manuevers lubricating the Blind Justice statue? I don't know, but one thing is for sure: LAC and Ganfeng are going to continue their Ostrich "Head in the Sand" strategy of ignoring that such a situation even exists. They sure don't want to draw attention to it, and frankly I don't blame them for their deaf and dumb act about Minera Exar.
Below is a statement from the 30 September 2019 posting on the LAC website. Keep in mind that the 50/50 arrangement for LAC/Ganfeng has since then been revised to a 49/51 situation, but the statement does show the relationship of both to Minera Exar:
"Vancouver, Canada: Lithium Americas Corp. (TSX: LAC) (NYSE: LAC) ("Lithium Americas" or the "Company") is pleased to provide results of a 40,000 tonnes per annum (“tpa”) definitive feasibility study (“40,000 tpa DFS" or “DFS”) on the Caucharí-Olaroz lithium project ("Caucharí-Olaroz" or the “Project”) currently under construction in Jujuy Province, Argentina. Caucharí-Olaroz is 100% owned by Minera Exar S.A. (“Minera Exar”), a 50/50 joint venture between Lithium Americas and Ganfeng Lithium Co., Ltd. (“Ganfeng Lithium”). Lithium Americas and Ganfeng Lithium have authorized Minera Exar to proceed with the plan to produce 40,000 tpa of battery-quality lithium carbonate (“Li2CO3”) as outlined in the DFS."
Anyway, it appears that Ganfeng and LAC are treating Minera Exar as their country bumpkin distant cousin who has come to town for a visit and looking for a place to stay.... Ganfeng and LAC are basically saying: "Who are you? We don't know you!" I'm sure both Ganfeng and LAC want the Minera Exar bad publicity to just "go away!!!". Can't blame either one for that. But this could come back to bite them, unless they manage to hire some very good slick lawyers on the sly to get rid of the problem.
My predicition is that is exactly what is happening and that you will never hear another word from either Ganfeng or LAC about those "criminal charges" in Jujuy Province against Minera Exar. Time will tell, or will it.
Silence is, after all, "Golden".