The mining-related project that China will finance in Argentina

The creation of a mining research center is one project in the agreements the presidents of Argentina and China, Alberto Fernández and Xi Jinping, have signed.

According to newspaper La Nación, the Chinese-Argentine Center for Geoscience Research will foster joint research from both countries’ geological services to increase knowledge about Argentina’s natural resources, especially in the lithium-rich provinces of Catamarca, Jujuy, and Salta.  

However, investments, location and timeline have not been announced.

Due to Argentina’s efforts to become a key regional lithium player, investment announcements related to electromobility and lithium battery production were expected to be included among the recently signed agreements, but officials have not revealed details.

Last year, Chinese investors started a competition for lithium assets, leading to a first result last week when Zijin Mining completed the acquisition of Canada’s Neo Lithium in a Cdn$960mn (US$755mn) all-cash deal targeting the control of the US$370mn Tres Quebradas (3Q) lithium brine project. 

In 2021, Zijin promised to invest US$319mn in 3Q, but after a recent meeting with Argentine officials, it has raised the amount to US$380mn. 

Moreover, announcements related to potential short-term sector investments may come from the Inter-American Development Bank, whose representatives recently met with mining secretary Fernanda Ávila.