The Chinese company LHS Rock Tools is one of them. “We came because we are interested in the mines. We know that the mining deposit is here in Sonora and that is why we have decided to participate here… We are looking for strategic partners and distributors, we want to cover a lot”, says Fanny Varela, commercial manager of the company in Mexico, in an interview with Expansion.
The company’s main products include tapered drilling tools (such as drill bits, sump and drill rods), threaded drilling tools (reaming bits and shank adapters), as well as hydraulic drills, among others. LHS Rock Tools was founded in 1969 and is one of the largest mining machinery manufacturers originating in China. It also has a presence in Australia and Canada.
Although he highlights that his main interest is in Sonora, does not rule out “investing a considerable amount” to join the value chain of the mining sector in Mexicoconsidering also venturing into Chihuahua and the Bajío.
On the other hand, the Chinese manufacturer of concrete, excavator, lifting and road machinery, focused mostly on construction, SANY, finds in the mining sector an opportunity to increase its business by up to 30%, according to Efrén García , sales manager for the center-north of the country. “For example, here in Sonora the open pit mines buy a lot of equipment, there is a lot of movement of machinery, many contractors.”
Currently the company also has a presence in Guatemala, Costa Rica, Panama, Chile, Argentina, Colombia, Chile and Brazil, having arrived in the country for two years.
The interest of the Asian country in the potential of Mexican lithium is not new. According to Morgan Stanley research published late last year, China is investing more and more in Latin Americasince before, its main lithium-related investment destination was Australia.
We believe that China is likely to become more exposed to South American lithium resources in the next 5 to 10 years and to decrease its dependence on Australian supply.
When will lithium be extracted from the Sonora deposit?
Information on the current state of the deposit is scarce., since Ganfeng has not issued any recent statement in Mexico about its operating or production process, in addition to the fact that it is not part of the sector groups. However, in its “2022 Interim Report”, available on its website, it makes a brief mention.
Meanwhile, the Company will further accelerate the construction of the Mexico Sonora lithium clay project, striving to make it a leading project in the field of lithium extraction from lithium clay worldwide.
Among the technological processes used by the company, based on the five deposits it has in the world (located in Argentina, Australia, China and Mexico), highlights the pressure leaching of partner salt, roasting by acidification with sulfuric acid and crystallization by evaporation of forced circulation, among others.
“It has been said, and it is part of the propaganda, that there is no technology in the world capable of separating lithium from clay… We must put an end to the propagandistic myth that lithium from Sonora is not profitable. It is as profitable as any lithium in the world and even more so,” Alfonso Durazo, governor of Sonora and coordinator of LitioMX, said in October.
Armando Alatorre, president of the College of Mining Engineers, Metallurgists and Geologists of Mexico (CIMMGM), calculates that it will still take three to four years for the project to reach economic viabilitybecause being a unique deposit in the world, the amount of work and studies behind it is extensive, which places a scenario with profits in the long term.
“If they allow private investment to continue with the project, they will require three to four years to demonstrate if it is feasible and economically viable.”