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UIA rejected the lithium law of La Rioja: It damages investments

UIA rejected the lithium law of La Rioja: It damages investments

“The Argentine Industrial Union (UIA) expresses its concern about the negative impact that Provincial Law 10,608 will have, sanctioned on December 15, 2022 by the Chamber of Deputies of La Rioja“, affirmed the manufacturing entity in a press release.

In a press release, the UIA specified that “currently, Argentina has two lithium projects underway that are in full expansion of their productive capacity: together, both exported around US$700 million during 2022 and generated more than 8,000 registered jobs”.

For the entity, “the suspension of concessions and permits damages this future potential in the region, both for ongoing investments and for those that are being planned for the coming years.”

He added that “Like any productive activity that requires long-term investments, the enhancement of resources such as lithium needs laws that provide long-term predictability and that empower companies that value assets such as lithium.”

Daniel Funes de Rioja New Authorities UIA

UIA Press

For the UIA “the promulgation of this law goes in the opposite direction to the opportunities that Argentina has in terms of: energy transition, federal development, creation of registered employment and generation of foreign currency from exports.”

The business representation maintained that “as stated by the Argentine Chamber of Mining Entrepreneurs (CAEM), if the most advanced projects are considered, the lithium industry foresees investments of US$5,000 million in the coming years.”

In this sense, he specified that “in the NOA region, Argentina has six projects under construction and close to twenty in different stages of progress” and stated that “when the productive stage is reached, the country could rank third in scale global”.

Consequently, he considered that “based on the immediate future, it is essential to annul this measure, which has not yet been enacted and which is -for this purpose- under consideration by the governor of the province of La Rioja”.

The UIA affirmed that the law “attempts against the challenge that the country faces in terms of development” and requested that “a new instance of institutional dialogue be opened that allows the contributions of the productive sector to be incorporated into the regulations, respecting the rules of the game that They are the only ones that provide certainty and confidence for productive investment as the only sustainable path towards productive, territorial and sustainable development, and the generation of genuine employment that guarantees social inclusion”.

Source: Ambito

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