Latin Resources Ltd (ASX:LRS) is moving full steam ahead at the Salinas Lithium Project in Minas Gerais, Brazil, singing a non-binding MoU with the State Economic Department of Minas Gerais and the Minas Gerais Integrated Development Institute (INDI), which together are referred to as Invest Minas.
The MoU covers collaboration on the development of a battery materials sector and supply chain in the region, as well as facilitation of support from all government bodies to fast-track regulation authorisations for Salinas.
The Memorandum of Understanding (MoU) involves two-way introductions and investment partnerships in the region, as well as facilitation of regulatory approvals, licensing and suppliers.
Given mining approvals are the biggest regulatory hurdles for mining projects, the agreement could give Latin Resources a material advantage in successfully developing Salinas.
Developing a strong battery mineral industry
“We are delighted to formalise our extremely good relationship with the State of Minas Gerais into a collaborative agreement to support the region,” Latin Resources managing director Chris Gale said.
“This partnership reinforces the existing cooperation between Latin and the State of Minas Gerais, and we are very pleased to be able to contribute Latin’s expertise and network to develop a strong battery minerals industry in the region to fuel global demand for these minerals.
“The potential streamlined approvals pathway for Latin to take the Colina Deposit through feasibility studies and into production provides significant opportunity for the development of both the project and the region.”
The regional government at Minas Gerais has positioned the Salinas Lithium Project as a priority project listing, which establishes the potential to streamline regulatory processes and accelerate the path to feasibility studies and production.
Working hand-in-hand with locals
“Invest Minas is very pleased to partner with Latin Resources in our efforts to develop a world-class lithium district in Minas Gerais,” Invest Minas CEO Joao Paulo Braga said.
“We are committed to facilitating progress for the companies operating in our state, in order to bring prosperity to the local economy and create a supportive environment for future investment.”
Under the agreement, LRS will use local suppliers and workforces whenever possible, provide support for local infrastructure needed to develop the battery minerals sector locally and leverage the company’s access to world-class engineers to provide a development model for the lithium industry in Minas Gerais.
Given Latin’s interest in a potential lithium mine in the region, the agreement is likely to smooth the way for both development and offtake opportunities.