Mexico's Lopez Obrador orders Ministry to step up lithium nationalisation

Mexican President Andres Manuel Lopez Obrador on Saturday signed a decree handing over responsibility for lithium reserves to the Energy Ministry, after nationalising lithium deposits last April.

During an event in Sonora, Lopez Obrador signed the decree that orders the Energy Ministry "to take the actions necessary to carry out" the nationalisation process.

It also declares 234,855 hectares (907 square miles) in Sonora as a mining zone known as Li-MX 1.

"(Let's make) the nation be the owner of this strategic mineral," Lopez Obrador said during the event.

Mexico holds important potential lithium deposits, a highly-sought material for the production of electric vehicle batteries.

Studies suggest Mexico may have some 1.7 million tonnes of lithium. While close to a dozen foreign companies have active mining concessions that aim to develop potential lithium deposits, Lopez Obrador has said all of them will be "reviewed," which has cast a cloud over the sector's future prospects.

"What we are doing now ... is to nationalise lithium so that it cannot be exploited by foreigners from Russia, China or the United States," Lopez

According to the business advocacy group, it "has watched with alarm and dismay the unfolding events surrounding the seemingly inept release of information" issued by the Commission on the investigation involving Prime Minister Andrew Holness and the awarding of two contracts to a company owned by a friend of his 14 years ago when he was Education

Minister.

The Chamber was responding to the Commission's rejection of allegations of misstep after it tabled a report last Tuesday in Parliament stating that Holness was referred for corruption charges, before sending the decision of its director of corruption prosecution two days later in which the Director, Keisha Prince-Kameka, had ruled that he should not be charged.

The Commissioners had said that once the report into the Holness matter was sent to the director of corruption prosecution, as required by the law, she submitted her ruling dated January 12, 2023 to the commission.

"The Commissioners, not having had the opportunity to read, understand and discuss it, took time to do so.

"The report was sent to Parliament and was tabled on February 14, 2023. Confirmation of the tabling was communicated to the Commission on February 15, 2023. The Commission's review of the ruling, having been finalised, instruction was given on the said February 15, 2023 for it to be published, and the publication was done on February 16, 2023," the directors said.

Arguing that they acted in strict compliance with the law, the Commissioners said that there was no provision in the Integrity Commission Act mandating the tabling of a ruling by the director of corruption prosecution.

(Excerpt from Jamaica Observer)

Obrador said at the event.

Last week, the chief executive of the state-run company for lithium production, Pablo Taddei, told Reuters that Mexico was open to partnerships, but that the Federal Government would have a majority stake in any future joint venture.

The decree published Saturday by the Economy Ministry said that "the rights and obligations of the holders of mining concessions in force that are within the lithium mining reserve zone remain safe".

It adds that "no mining activity related to lithium" can be carried out within the reserve, but gave few additional details.

(Reuters)