Released March 28, 2024 | SUGAR LAND
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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Chilean government announced the second stage of its national lithium strategy, focused on attracting private investments to some of the country's salt flats.
On Tuesday, a group of Chilean ministers announced that the government will open 26 new salt flats for private investments and development. The state will launch the tenders for these areas in April, and the process will end in July, although not all salt flats may attract private interest.
Private companies could seek to develop these 26 salt flats themselves or seek a state-company partnership. This offers the private sector the opportunity to set foot on the world's third-largest lithium resources, according to the United States Geological Survey, without the need to partner with the government.
Officials said that state companies may seek flexible minority stakes with private companies across these areas.
The ministers also highlighted that in some of these 26 areas, community consultations will have to be carried out before the projects can be launched.
The announcement is part of Chile's national lithium strategy, which President Gabriel Boric presented last year and aims to increase state control of the industry.
On Tuesday's press conference, the Chilian minister of finance, Mario Marcel, said that the Atacama and Maricunga salt flats would remain under the state company's control, through majority stakes, given their size, reserves, and national importance.
As part of this, Codelco (Santiago, Chile), the national copper miner, was tasked with negotiating contracts with companies that already had operations in the Atacama salt flat, such as Sociedad Química y Minera de Chile (SQM) (NYSE:SQM) (Santiago) and Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina).
In December, Codelco and SQM signed an agreement that will create a public-private partnership by next year in the Atacama salt flat. The state company will control 50% plus one of the new company's shares. Through this deal, SQM was able to extend its operations in the Atacama mine until 2060.
Additionally, the government informed that state companies have launched projects or are looking for partners in five more salt flats.
Through this announcement, the Chilean government will protect 38 more salt flats from exploitation, representing about 30% of the country's salt flats.
The government expects Chile's lithium production to increase by more than 100% by the end of the decade with the development of new lithium areas through the nation's new strategy.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
On Tuesday, a group of Chilean ministers announced that the government will open 26 new salt flats for private investments and development. The state will launch the tenders for these areas in April, and the process will end in July, although not all salt flats may attract private interest.
Private companies could seek to develop these 26 salt flats themselves or seek a state-company partnership. This offers the private sector the opportunity to set foot on the world's third-largest lithium resources, according to the United States Geological Survey, without the need to partner with the government.
Officials said that state companies may seek flexible minority stakes with private companies across these areas.
The ministers also highlighted that in some of these 26 areas, community consultations will have to be carried out before the projects can be launched.
The announcement is part of Chile's national lithium strategy, which President Gabriel Boric presented last year and aims to increase state control of the industry.
On Tuesday's press conference, the Chilian minister of finance, Mario Marcel, said that the Atacama and Maricunga salt flats would remain under the state company's control, through majority stakes, given their size, reserves, and national importance.
As part of this, Codelco (Santiago, Chile), the national copper miner, was tasked with negotiating contracts with companies that already had operations in the Atacama salt flat, such as Sociedad Química y Minera de Chile (SQM) (NYSE:SQM) (Santiago) and Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina).
In December, Codelco and SQM signed an agreement that will create a public-private partnership by next year in the Atacama salt flat. The state company will control 50% plus one of the new company's shares. Through this deal, SQM was able to extend its operations in the Atacama mine until 2060.
Additionally, the government informed that state companies have launched projects or are looking for partners in five more salt flats.
Through this announcement, the Chilean government will protect 38 more salt flats from exploitation, representing about 30% of the country's salt flats.
The government expects Chile's lithium production to increase by more than 100% by the end of the decade with the development of new lithium areas through the nation's new strategy.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 Trillion (USD).
