Rebirth of England

"We have donated $1 million to the rescue operation of the San Jose copper mine in Chile and sent a team to assist in the rescue work..."

The person who said this to Barron was Williams Bullard, executive vice president of West African Mining Group. As for Andrew Cole, CEO of West African Mining Group, he led a team directly to Chile.

As for the San Jose copper mine accident mentioned by Williams, it refers to the landslide accident that occurred in a copper and gold mine called San Jose in the Atacama Desert in northern Chile on August 5.

This accident caused 32 Chilean miners and 1 Bolivian miner working underground to be trapped 700 meters underground. Rescue work was immediately launched. Chile attached great importance to this accident. The Chilean president and the minister of health went to the scene of the accident to organize rescue.

By August 22, the rescuers finally dug a narrow passage with a diameter of 6 inches (about 15.2 cm) from the ground to the shelter where the miners were.

Then they used this passage to receive a small note from the surviving miners in the shelter: "All 33 of us are in the shelter, and we are all safe."

At this time, the miners survived for 17 days on a small amount of emergency food stored underground, which was a miracle.

Then using this passage, the rescuers began to deliver supplies to the trapped miners, including food, water and air...

They were even able to talk to their families and watch football games - after the passage was expanded, they sent down a TV and signal lines.

According to the rescuers' plan, they will use a special drill to penetrate the hard rock formation and dig out a rescue tunnel with a wellhead diameter of about 66 cm (circumference of about 207 cm, equivalent to the size of a bicycle tire) to the space where the miners are trapped.

This requires all trapped miners to keep their waist circumference below 90 cm, because the rescue tools will also take up space in the rescue tunnel.

This rescue tunnel is planned to take 120 days to build.

West Africa Mining Group also provided assistance for this rescue, including donations and sending an experienced team...

The reason why they are so active this time is that West Africa Mining Group is seeking to acquire shares of Chilean Chemical and Mining Company (SQM) and even further control the company.

Therefore, they hope to take advantage of the current opportunity to gain the favor of Chile.

Andrew Cole, CEO of West Africa Mining Group, led the team directly to Chile for this matter.

The reason why West Africa Mining Group is interested in this company is that it hopes to obtain the lithium mining rights owned by Chilean Chemical and Mining Company (SQM), especially their lithium mining rights in Chile.

As we all know, Chile is very rich in lithium resources and is the world's largest lithium reserve country. At present, its proven reserves account for more than 36% of the world's proven reserves!

Chile's lithium resources are mainly distributed in the salt lake area in the north, located in the so-called "lithium triangle" area of ​​South America. The lithium resources in the "lithium triangle" area include Atacama Salt Lake, Umbra Torres Salt Lake and Parapolca Salt Lake.

Among them, the Atacama Salt Lake is located in Chile and is one of the world's well-known lithium producing areas.

The mining rights of the salt lake are mainly in the hands of the Chilean Chemical and Mining Company (SQM), and the lithium carbonate it produces is known for its high quality.

In addition, the Chilean Chemical and Mining Company has also acquired some lithium mining rights including Bolivia, Argentina and Australia through acquisitions. It can be said that it is currently the company with the highest lithium reserves.

The Chilean Chemical and Mining Company has mature technology and optimized lithium production processes, which can effectively control costs, have stable production capacity and high product quality.

This is why it was favored by the West African Mining Group and hopes to acquire its shares and even complete the holding of the company.

After all, Barron knows that lithium mines are very important for the battery industry in the future new energy industry.

At present, the price of lithium carbonate ore, the main source of lithium, is less than US$10,000 per ton, and in ten years, its price will soar to more than US$50,000.

By then, the Chilean Chemical and Mining Company will also double its wealth because of its rich lithium mines.

The Chilean Chemical and Mining Company (SQM), founded in 1968, is headquartered in Santiago, the capital of Chile.

They were listed on NASDAQ in 1993. Relying on their geographical resource advantages, they have developed into a global professional producer of potassium nitrate, iodine, and lithium, accounting for approximately 50%, 40%, and 35% of the global market share, respectively.

In Barron's previous life, China's Tianqi Lithium acquired 23.77% of SQM's shares for US$4.066 billion in 2018. However, this acquisition caused disputes after Chile announced that it would nationalize domestic lithium mines. Tianqi Lithium's interests in SQM were therefore infringed, and it could only resort to litigation...

However, SQM's market value is now less than US$4.5 billion. For Barron, who hopes to intervene in the lithium mining and processing industry that will have a great impact on the battery industry in the future, it is naturally a very suitable acquisition opportunity.

"We have reached an agreement with the Canadian Potash Company and are ready to acquire their 25% stake in the Chilean Chemical Mining Company for US$1.2 billion. This acquisition can be completed after being confirmed by SQM. However, If we want to continue to acquire more shares in SQM, we will need to do more work..."

Before going to San Diego, the CEO of the West African Mining Group first arrived in Canada and reached an agreement with the Canadian Potash Corporation, the world's largest potash fertilizer manufacturer, on the acquisition of SQM shares.

It is worth mentioning that in Barron’s previous life, the 23.77% stake in SQM purchased by China Qi Lithium was acquired from the Canadian Potash Company.

To purchase the 25% stake in SQM held by the Canadian Potash Company, the West African Mining Group's bid was US$1.2 billion, which corresponded to a value of more than US$5 billion for the Chilean Chemical Mining Company, giving the Canadian Potash Company a considerable premium. This is why they are willing to sell these shares.

"Lithium mines are very important for battery production. With the improvement of lithium battery technology, its application scenarios will become more and more abundant, so its price will definitely usher in a strong rise..."

For the West African mining group, Barron cited the rising future value of lithium mines as the reason for acquiring Chilean chemical mining company.

What he values ​​more is the demand for lithium batteries from industries such as mobile phones and other consumer electronics as well as electric vehicles. It can be said that the number of lithium mines controlled directly determines the right to speak in the new energy industry.