Chile's Codelco, SQM to Develop Lithium Mining Joint Venture

---

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The leaders of Chilean miners Codelco (Santiago) and Sociedad Química y Minera de Chile (SQM) (NYSE:SQM) (Santiago) have agreed to create a joint venture to produce lithium in the Atacama Desert until 2060. The joint venture would include ongoing lithium mining operations operated by SQM in the area. Under the agreement, state-owned Codelco would own 50% plus one of the shares of the new joint venture.

The agreement is expected to become effective in early 2025 following the finalization of legal, environmental and technical requirements as well as consultation with indigenous communities.

The companies plan to reach an annual output of 300,000 tons of lithium carbonate equivalent (LCE) between 2025 and 2030 at the Atacama operation. According to Codelco's statement, the production boost will come from higher efficiency, new technologies, and the optimization of processes.

SQM will oversee the joint venture until the end of 2030, while Codelco will take the helm from 2031 onwards.

"The partnership will have 100% of our infrastructure and plants, including the largest lithium product refining center in the world located in Antofagasta. We are committed to meeting high environmental standards and to a continuous process of dialogue with the Atacama communities, to protect the ecosystem of the salt flat. With the Codelco--SQM partnership, through various means, Chile will receive 85% of the operating margin starting in 2031," said Ricardo Ramos, general manager of SQM.

This agreement follows last year's launch of the Chilean government' national lithium strategy that aims to give state companies access to lithium mining areas, such as the Atacama desert, through partnerships with private companies operating in the area.

Besides the negotiations with SQM, Codelco was also negotiating for the creation of a joint venture with Albemarle Corporation (NYSE:ALB) (Charlotte, North Carolina), another company with lithium operations in Chile. Albemarle has lithium production contracts in Chile until 2043.

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 more than 200,000 current and future projects worth $17.8 Trillion (USD).