A group of international miners submitted a proposal to extract lithium from Chile’s Altoandinos salt flats this week. The nation’s state-owned mining regulator ENAMI will now be assessing the application’s viability. Its decision on the matter is expected by Aug. 19.
Most notably, the mining giant Rio Tinto Group (LON: RIO), South Korea’s electronics manufacturers LG Corp (KRX: 003550), the French mineral extraction company Eramet S.A. (EPA: ERA), China’s electric vehicle maker BYD Ord Shs (SHE: 002594) and renowned steel manufacturer POSCO Holdings (NYSE: PKX).
POSCO has taken a keen interest in Argentina lithium too. In January, the Korean steelmaker and Lithium South Development Corporation (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) initiated a joint venture at the Salta province’s Hombre Muerto North operation.
Read more: Lithium South and POSCO Holdings ink mutual development agreement
Chile has been enhancing its focus on this particular area of its expansive Atacama region. The nation aims to capitalize on its rich lithium brine resources through new partnerships. ENAMI says the companies on the new application have an aggregate value exceeding C$387 billion. It began seeking potential developers for Altoandinos in May.
Others with their name on the proposal include the local construction company Besalco, Argentina’s oil and gas operator Tecpetrol, Russia’s Axionit, Canada’s lithium extraction expert Summit Nanotech and the Chilean miner Grupo Errazuriz. Also, China’s CNGR Advanced Materials and a consortium designated as “BTR.”
“This confirms the conviction of these companies to advance in a public-private alliance process to materialize this [multi-faceted] project,” ENAMI leader Ivan Mlynarz said in a statement. “It reflects the trust and credibility that Enami awakens in the sector.”
#ENAMIenlaPrensa
🗞 La Empresa Nacional de Minería recibió 12 manifestaciones de interés de empresas y/o consorcios para desarrollar el proyecto de litio en Salares Altoandinos✨¡Les dejamos una recopilación de ENAMI en la prensa nacional! ✨ pic.twitter.com/3rnGjIQEIj
— ENAMI (@ENAMIChile) July 26, 2024
Read more: Lithium South raises $4M in private placement
Read more: Lithium South and POSCO Holdings ink mutual development agreement
Saudi Arabia’s mining minister visits Chile
Earth’s second largest producer of lithium has been attracting attention from the Middle East too.
Bandar Alkhorayaf, Saudi Arabia’s minister of mining, is in Chile this week to scope out potential lithium deals. He will be meeting with the South American nation’s mining minister Aurora Williams.
Alkhorayaf will be interacting with Chile’s state-owned copper miner Codelco as well.
“This aligns with the Kingdom’s direction towards expanding the production of electric vehicles,” the Saudi government said.
Read more: Codelco and SQM finalize a definitive agreement about lithium in Chile
House lawmakers oppose state lithium control
In a related development, Chile’s lower house of government just overwhelmingly approved a resolution requesting that President Gabriel Boric void the new deal between Codelco and Sociedad Química y Minera de Chile (SQM) (NYSE: SQM). The major Chilean copper miner and SQM inked a definitive agreement last month.
If the new SQM-Codelco deal goes forward, the two companies will have principal control over national lithium production in the country’s Atacama region until 2060. Codelco, which would act as manager, would have a majority stake exceeding 50 per cent for the next 35 years.
Boric wanted to use their partnership to bolster the state’s role in domestic lithium production through Codelco’s influence. However, members of the house think that a bidding and tender process should be initiated when SQM’s current contract expires at the end of the decade. This would give private mining companies a shot at developing the nation’s lithium resources.
Lawmakers specified in the resolution that they want the agreement cancelled so the process can be done through “national and international public tender and not in a direct deal.”
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rowan@mugglehead.com
