What is the situation of the production of renewable energies like in the province?
Jujuy has the Cauchari solar park that is already underway in the middle of Puna, with a production capacity of 300 Mw.
The construction of the projects I, II and III has been completed and that led to the creation of 1,200 jobs, with 60% of the workers coming from the indigenous communities of the region. Cooperatives for the provision of services have been set up as well as local providers in the different towns.
With Cauchari, the province has had a turnover of 30 million dollars since september 2020, date when energy began to be sold.
The largest solar plant in Latin America, at 4,000 meters above sea level , is made up of 600 hectares with a million solar panels and a plant, already operating, that is 100 % public. In addition, it pays 2 % of the income to the original community of Puesto Sey.
The income coming from the energy sale will be 1,200 million dollars during the next 20 years and that will allow us to pay loans with the Eximbank and the Bono Verde.
It will also make it possible the payment of the Educational loan granted for the construction of 258 new school buildings, the comprehensive repair of 700 educational centers in the whole province, connectivity works with a 2,000- kilometer network and teacher training.
Besides, as the objective is to reach 500 Mw, work is being done on Cauchari expansion to add more 200 Mw.The project is ready and we are waiting for its authorization. CAMMESA has already given the OK and we are waiting for the political approval of the national government. With this, it will be possible to generate 1,000 more jobs and an additional 600 million dollar-income for Jujuy.
The cost of all the loans that are necessary for the accomplishment of these projects will not exceed the 300 million dollars which means a 300 million dollar-income for Jujuy.
On the other hand, Jujuy develops the Distributed Generation Project, which determined the tariff signed with EJESA (energy company in the province). They are 13 solar plants for 96 Mw, at a cost of 95 million dollars, that post to reach a 220 million-dollar turnover. With this undertaking, 100 million dollars will also go into the province . Therefore, Jujuy sells tobacco, sugar and some minerals but currently it is also an energy seller.
At the same time, progress is being made with a solar thermal generation project, through an agreement with INVAP, within the framework of a strategic alliance with Jujuy Energía and Minería S.E. for the construction, marketing and operation of highly complex projects.
It is a solar thermal power plant in Cauchari made up of mirrors and a tower that has salts. The mirrors project the sun, heat the salts and these generate steam that is used for power generation. With this system, energy will be available 24 hours a day for 5 Mw or 10 Mw. The governments of Jujuy and Rio Negro have decided to build a small plant of 10 Mw in Jujuy and another one of 10 Mw in Río Negro , come out on sale and become INVAP partners. It meant an investment of 618,000 dollars. The society also involves the invention patent of this new technology.
As there are lithium ventures that consume 14 Mw, this energy flow will be able to be offered to mining, meaning a significant reduction of fixed costs.
Piedra Negra Hibrid Central , that is close to be completed, is added to these projects .This is the first hibrid central in the world. It has gas, solar panels, lithium batteries and will generate 2,5 megawatts to supply La Quiaca, border city with Bolivia.
At the same time, progress is being made on the repowering of the energy system at schools. Up till now, there are three schools equipped with photovoltaic systems and accumulators.
The Pueblos Solares Project can’t be ignored either. Jujuy has 4 : Olaroz Chico, Ciénaga de Santa Catalina, Angosto de Santa Catalina and San Francisco of Santa Catalina. Caspalá, Santa Ana, Lipán de El Moreno, el Toro, Catua and San Juan de Quillaques are on their way to becoming solar towns.
What are the existing ventures and projects in the province for the extraction and treatment of lithium?
Jujuy has been producing lithium carbonate in Olaroz-Cauchari salt flats since 2015 in the mining venture Sales de Jujuy, currently in expansion. In addition, Minera Exar is under construction and both are making a significant contribution to the repositioning of the province on the world stage.
In March 2021, Sales del Jujuy reports a 50% progress in its expansion plans and the total investment reaches 330 million dollars. By the second quarter of 2022, the works would be completed so as to have an installed production capacity of 42,500 tons / year, The total number of employees in production is 450 people and 900 more jobs are added during the expansion work.
For its part, Minera Exar intends to invest 565 million dollars during its construction and start-up from the second half of 2022,with an installed capacity of 40,000 tons/year. Up to March a 50% progress.has been reported. It was also known that 1,700 workers have been hired and it will also have a 450- people permanent plant.
Is it mineral extraction the only objective or added value as well ?
Next year, there will be an installed production capacity of 82,500 tons with both undertakings mentioned previously and it is expected to reach that production from the year 2023.This strengthens the upstream lithium value chain , adding value to the lithium brines from which the lithium carbonate is produced and marketed. Besides, jobs are created, suppliers and contractors are developed and exports and foreign exchange earnings provide a positive contribution to the national economy balance.
On the other hand, we are interested and always working on the development of the downstream value chain, to continue adding value. Toyota and Orocobre have a presence in the province in Sales de Jujuy and Lithium Americas and Gangfeng in EXAR. It is very important to take into account that in both ventures, the province has a participation of 8.5% through JEMSE.
In Minera Exar, Gangfeng holds 51 % of the share parcel. It is a very strong small Chinese company that has one of the most important battery factories of the country and has decided to install a plant for the manufacturing of lithium batteries in Jujuy once the Electric Mobility Project is in force.
The province heads towards electric mobility and the comprehensive development of the lithium carbonate value chain, through the manufacture of lithium batteries, projects that have not been accomplished up till now because there is no market available.
In addition, there is an agreement signed with Italian capital to install a lithium battery factory in Perico industrial park. This agreement will be activated once the Promotion Regime of Electric Mobility is in force.
Keeping on with electromobility , the bill promoted by Minister Matías Kulfas is convenient.The world is paving the way for a change in the energy matrix, moving from fossil energy to renewable energy and this implies the transformation of the transport matrix.
The project in question provides for benefits for the reduction of internal taxes and will have a reduction of VAT. A Bono Verde will also be granted to each buyer of an electric car; as well as it will be possible to use it for the payment of national taxes
Until the year 2040, the country will have to change the buses, transforming the units run on fossil fuels into electric ones. Accordingly, Jujuy has concluded an agreement with the National University of La Plata, by which the industrial park for the reconversion of the buses could be installed in the province.
Is there any provision that encourages the settling down of companies in the province?
Jujuy is making further progress towards the diversification of its productive matrix and has been the destination of investments of over 1,000 million dollars in mining in the last five years. It is a clear sign of the encouragement given to the investment policy developed by our government.
In addition, Jujuy , Salta and Catamarca signed the constitutive act of the Lithium Bureau, aiming at the promotion of the competitiveness of the provinces producing this resource.
Foundations were laid to generate conditions of reciprocity,based on the conviction that the joint growth of the region will boost more investment and bring about employment opportunities and genuine development.
It should be pointed out that the Argentine ambassador in the United States , Jorge Argüello,made it explicit his support to the Lithium Bureau and committed himself to building ties with businessmen of that country to boost investments.
On another level, they agreed to promote fiscal benefits and promotion ones for the establishment of new industries in the Nothwest Region,like the electromobility bill. It will bring about benefits to the provinces with lithium resources and reserves guaranteeing the legal security of the actors involved in the mining processes. Because of this, they have decided to carry out coordinated work with the national State and federal entities for the development of the national mining activity. In a joint statement , Jujuy,
Salta and Catamarca committed themselves to making up bureaus of work to outline a scheme of promotion and distribution of the benefits of the mining activity At the same time, they consolidated the original domain.over the existing natural resources in line with the Article 124 of the National Constitution.
Meanwhile, Orocobre, an Australian firm that invests in Jujuy through the project Sales de Jujuy and the firm Galaxy, operating in Catamarca, will merge in equal parts of 4,000 million dollars to drive the development of lithium at a global scale. Its demand experiences a significant increase in the manufacture of electric vehicles equipped with lithium batteries.
This business integration brings together highly complementary assets, technical resources, skills and knowledge, with the opportunity of creating a leading and independent lithium company. It will, in turn, speed up the development of combined growth projects considerably.
