On January 16, 2023, Resolution No. 15/2023 (the “Resolution“) was published in the Official Gazette whereby the Federal Ministry of Economy (the “Ministry“) proceeded to waive the export reimbursement of the goods classified as lithium, hydroxide and lithium oxide, lithium chloride, and lithium carbonate.
The Resolution orders the secretaries of the Ministry to design the required administrative measure to waive the export reimbursement. Specifically, the Resolution impacts the following tariff positions: 19.90; 2825.20.10; 2825.20.20; 2827.39.60, and 2836.91.00 of the Mercosur Customs Tariff Code (N.C.M).
The Resolution will become effective on January 16, 2023.
Background information
As a reason for the issuance of the Resolution, the Ministry established that the lithium sector has registered exponential growth, both in terms of mineral prices -driven by a great global demand- and in the progress of the numerous projects that are located in the country.
Consequently, it considered that “taking into account the electro-mobility that caused a change in the market and that the international scenario had an abrupt growth in the demand for lithium that produced an exponential increase in the price and also in the profitability of the projects, it is understood that a stimulus such as the reimbursement has fulfilled the objectives for which it was opportunely established”.
Before the enactment of the Resolution, the sector’s companies received export refunds from the Federal Government ranging from 2.5% to 5% of sales. Meanwhile, the export duty of 4.5% for lithium compounds is maintained.
Data from the Federal Mining Secretariat (“FMS“) regarding lithium
According to the FMS, Argentina has a lithium mining investment potential of approximately US$ 6,473 million. From 2020 to the second quarter of 2022, capital investment announcements for an approximate amount of USD 4,579 million have been registered. Current production is approximately 33,000 tons per year.
Regarding lithium export data, the latest Monthly Report (December 2022) of the FMS, states that “in the first 11 months of 2022 lithium sales abroad reached USD 620 million, growing 235% year-on-year and representing 18% of total mining exports. This export figure in historical terms represents this year’s number one position for the first 11 months of a year, being 139% above the accumulated of the first 11 months of 2018 (the second historical year with the highest exported amounts). As for the quantities exported of lithium, in the accumulated so far this year they exhibited a growth of 4.5%.”
For further information or questions on these issues, please contact Marcos Moreno Hueyo and/or Dolores Reyes.