Protestors Block SQM Lithium Mine in Chile

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Since January 9, indigenous groups in Chile's Atacama Desert have been blocking roads and access to Sociedad Química y Minera de Chile's (SQM) (NYSE:SQM) (Santiago, Chile) lithium mine. The communities are seeking involvement in the contract negotiations between SQM and Codelco (Santiago, Chile) and the environmental impact of lithium mines on the salt flat.

The protest will be indefinite until Chilean President Gabriel Boric visits the area to talk with groups and see the impact of the mines, according to a statement by the indigenous groups.

Representatives of 18 communities of the Atacama desert are present at the protests, based on information shared on X.

According to Reuters, Albemarle Corporation's (NYSE:ALB) (Charlotte, North Carolina) lithium mine, also located in the Salar of Atacama, is operating normally. Meanwhile, the indigenous groups said in a statement that "we want to categorically deny that the SQM plant is operating normally," and they have blocked the four access routes to the SQM mine and have prevented the movement of buses to the mine.

"We hope that the president of the republic fulfills his commitment to know the status of the Salar together with the communities. And see on the ground the damage caused in the extraction site itself and in the surrounding communities," said Wladimir Reyes, president of the organization representing the indigenous communities in Atacama.

In April last year, the Chilean government decreed the nationalization of the lithium industry, forcing all companies operating in the sector to negotiate their contracts with Chilean state miner Codelco and grant it participation in all the industry processes.

As a result, Codelco began negotiations with Albermarle and SQM, which operate Chile's two producing lithium mines. In December, Codelco signed a deal with SQM to create a public-private partnership to develop the company's assets, extending the SQM contract from 2030 until 2060. Codelco will hold just over 50% of the shares in the new company.

The new partnership will begin operations in 2025 after some conditions are met, according to Codelco's statement.

Meanwhile, Albemarle's contract expires in 2043, and it continues to negotiate the details of its joint venture with Codelco.

Chile is the world's second-largest producer of lithium and it has the second-largest lithium resources, according to the United States Geological Survey.

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