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Chile opens lithium salt flats for investment, saves two for state control
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Chile opens lithium salt flats for investment, saves two for state control
Mar 26, 2024 7:16 PM

SANTIAGO, March 26 (Reuters) - Chile's government on

Tuesday opened up more than two dozen lithium salt flats to

private investment, while reserving the prolific Atacama and

Maricunga deposits for state majority control in lithium

extraction.

The long-anticipated announcement sheds light on how

President Gabriel Boric's government plans to carry out a policy

announced last year to boost state control over the South

American country's lithium industry, the world's second-largest

after Australia.

The opening to fresh projects could more than double Chile's

production of lithium, a key material for electric vehicle

batteries, in a decade, said Finance Minister Mario Marcel.

"What we announced a year ago is starting to become a

reality," he told a press conference.

Officials said they would open a tender process in 26 salt

flats in April, set to conclude in July, although not all would

necessarily attract interest, officials said.

In another five salt flats, state-run companies are already

beginning projects and seeking partners.

Only two companies currently extract lithium in Chile -

Chile's SQM and U.S.-based Albemarle - both in

the Atacama salt flat.

The Atacama salt flat has the world's highest concentration

of lithium in brine, and the Maricunga salt flat also has some

of the highest levels in Chile.

The government appointed state-run copper giant Codelco to

negotiate joint ventures with each company. So far, the miner

has inked a preliminary deal with SQM set to run through 2060.

Codelco this month also completed the $244 million

acquisition of Australia's Lithium Power International,

which owns the Salar Blanco project alongside Codelco's own

holdings in Maricunga.

Officials on Tuesday said the government is also interested

in participating in lithium projects outside Atacama and

Maricunga, without a majority stake.

Some projects led by private companies will require approval

by local indigenous communities, depending on the potential

impact in each region, officials said.

Mining Minister Aurora Williams noted that officials are

still evaluating the creation of a national lithium company,

part of the plan outlined last year, without a deadline for next

steps.

Environmental protection will be granted to 30% of the salt

flats, in areas that have yet to be determined, officials said.

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