China seeks to expand its presence in Argentina with investment in lithium and wind energy
Photo: Wikimedia Commons.
The Chinese mining company Ganfeng has acquired a US$70 million stake in the Pastos Grandes lithium project, located in the province of Salta, Argentina, from Canadian mining company Lithium Americas, representing a 14.9% share in the deposit.
This acquisition, previously announced, reinforces Ganfeng’s presence in Argentina, with the objective of applying the incentives of the Large Investment Incentive Regime (RIGI) – a key tool for attracting investment in Argentina – in its development plans in the north of the country.
Sam Pigott, president of Lithium Americas Argentina, highlighted the importance of this transaction to the joint efforts of both companies in Argentina, underscoring the collaboration and commitment to advance the global energy transition.
The proceeds from this sale are expected be used to strengthen Lithium Argentina’s finances, reduce short-term debt at the Caucharí-Olaroz project and support future growth plans.
The Pastos Grandes project, acquired by Lithium Argentina in 2022, is located in the same basin as other relevant lithium projects in the region, such as Sal de la Puna and Caucharí-Olaroz. The company expects to benefit from RIGI tax incentives to expand these projects and continue regional development. The results of these plans are expected by the end of 2024.
Meanwhile, in the province of Chubut, progress is being made in the construction of a new wind farm in El Escorial, in the north of Chubut. The plan is expected to be developed with the help of Chinese capital, as there are investors willing to contribute up to US$350 million for the construction of the farm.
With a projected capacity of 200 megawatts, this park could provide electricity to 80% of the province within two to three years. The project is considered key to Chubut’s energy transition.
Nicolás Cittadini, Chubut’s Secretary of Infrastructure, pointed out that the wind farm would not only supply the province, but could also provide energy to the rest of the country.
However, the project faces challenges, such as the need to interconnect municipalities that depend on isolated generation. Cittadini proposed that, with the support of the National Government, the construction of a transmission line to connect these towns to the power grid be financed.
The El Escorial project is seen as an opportunity to improve Chubut’s energy infrastructure, promote industrial development and generate employment in the region. It also highlights the importance of ensuring that the economic benefits are distributed equitably between the province and the investors, in line with the provincial government’s energy transition and sustainability goals.
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