Milei Approves Incentives For Lithium Mine Expansion With China Ties

Argentinian President Javier Milei’s government on Thursday approved a series of incentives for the expansion of a lithium mine half-owned by a Chinese firm; It’s a rare move for libertarians who have prioritized their ties to the Trump administration.

Milei’s government has authorized a joint venture led by China’s Ganfeng Lithium Group, with its US-listed partners Lithium Argentina AG and state-owned JEMSE, to invest $1.24 billion in the expansion of its mine in Jujuy province.

Economy Minister Luis Caputo made a statement about the investment in X, but did not mention the companies involved. The joint venture will receive legal guarantees and tax breaks as part of Milei’s comprehensive program to attract major investments, known as RIGI.

Ganfeng owns 47% of the mine and is the largest shareholder of the project. Milei’s decision to bar its state-run companies from other projects, in deference to its ties to President Donald Trump, who gave Milei a $20 billion financial lifeline last year, is an unusual move for a Chinese firm in Argentina.

The Argentine government also approved PSJ Cobre Mendocino, formerly known as San Jorge, to join the RIGI regime. This will be the first major metal mine in the winemaking region of Mendoza and will cost approximately $891 million. Caputo added that combining the two projects will directly and indirectly create 8,000 jobs.

Milei’s administration is trying to bulletproof investments by companies that have largely stayed away from Argentina after decades of state intervention. Beyond energy and infrastructure, it wants to position Argentina as a major supplier of minerals critical to the global transition towards clean energy, electrification and advanced technologies.

The approvals contribute to a number of mining and energy projects aiming to enter RIGI, which offers regulatory stability for up to three decades, among a range of other financial incentives. Milei is also turning to mining to reverse Argentina’s chronic foreign exchange shortage, but some investors remain cautious given the country’s history of capital controls and policy swings.

Caputo said Argentina has approved 16 projects through RIGI, promising a total investment of approximately $30 billion, while another 20 proposals are under evaluation.

This article has been generated from an automated news agency feed without modifications to the text.