Gerardo Morales has arranged the establishment of Tsingshan Mining Development SA in Jujuy, which will invest $120 million to install a plant to produce hydrogen chloride and caustic soda to produce lithium carbonate.
Governor, Gerardo Moralesand the president Tsingshan Mining Development SA, John Li, signed a memorandum of understanding for the establishment of an Asian company in the Perico Industrial Park, where they will set up a plant for the production of hydrogen chloride and sodium hydroxide, which will be used mainly for the development of lithium carbonate in the Salta Mountains. The investment will amount to 120 million dollars, 80 million dollars in the first phase, while 40 million dollars will be invested in the second phase of development.
The construction of the facility will last 18 months, and during the construction period more than a thousand people will be employed, and later in the work phase around two hundred qualified workers will be employed.
Tsingshan Holding Group Co., Ltd. (Tsingshan) operates in the mining and metals sector, mainly in the stainless steel industry. In Argentina, together with the French multinational company Eramet, it is developing the Centenario-Ratones project, where it produces lithium carbonate.
Gerardo Morales emphasized the importance that "a company the size of Tsingshan Mining is investing in Argentina" and is ready to "produce lithium carbonate in Salta." He reflected on the "decision to invest in Jujuy" and promised to make "every effort to encourage more investment in the future.".
The governor predicted a great scenario for the lithium industry in northern Argentina that will "generate a cluster in the region" as a result of "an ongoing and unstoppable development," he said. He characterized as "fundamental" the decision to produce all the necessary inputs for the production of lithium carbonate, and in this sense he noted that "Tsingshan Mining leads the way in the production of hydrochloric acid and caustic soda."
President Jujuya highlighted the investment promotion regime being implemented in the province with the aim of "generating more jobs for our people". At the same time, he valued "an investment of 120 million dollars" and "the employment of 1,000 jobs during the construction of the factory, and then 200 to 300 permanent workers.".
In order to create the conditions for the development of the project, the province of Jujuy and the energy distribution company EJE SA agreed to guarantee a supply of 10 megawatts for the optimal operation of the plant. In this regard, Morales indicated that additional works will be carried out to connect the San Juancito distribution plant with the Industrial Park and the Perico Free Trade Zone, which will significantly improve the energy supply according to the projection of the future development of the industrial poles. The gas will also be supplied "in excess of the demand that Tsingshan Mining will have," as well as "to cover the demand of other companies that have announced their establishment," the president said.
It is worth mentioning that the company will occupy 14 hectares of the Industrial Park with the possibility of expanding the property in case of expansion.
Finally, Gerardo Morales expressed that "it is an honor that Tsingshan Mining has decided to settle in Jujuy".
"The goal is to develop the lithium value chain"
For his part, Tsingshan Mining Development SA President John Li expressed his satisfaction with "the start of a new chapter of the company's new energy business in Jujuy."
The executive indicated that "the goal is to develop the lithium value chain in the region and create more jobs, more value and benefits for the citizens of Argentina."
He emphasized the importance of the project in Jujuy which will "produce essential inputs for the development of lithium projects in the region" and which will "bring hundreds of skilled jobs and opportunities that will benefit local communities."
John Li, stated that he was "very impressed with the efficiency of the Jujuy government" and emphasized that "with the support of the citizens, we will succeed in this very important project".
"We are new to Argentina, but we are here to stay and continue to develop the region," concluded the CEO.
On that occasion, a cooperation agreement was signed between the province and a Chinese company framed by the Law on Investments, which establishes tax incentives for this type of investment. Minister of Economic Development and Production Juan Carlos Abud Robles and vice president of the Asian company David Chen, as well as Minister of Finance Carlos Sadir and national representative Gustavo Bouhid were responsible for the signing.
Source: Cronista
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