While Codelco dominates copper output in Chile, the world’s top copper producer, the state has yet to produce lithium. — Reuters
SANTIAGO: Chile will start talks with SQM over its operations in the Atacama “this semester” to convince the world’s No. 2 lithium mining company to sign onto a state-led public-private model, the economy minister says.
SQM said it would need to invest an additional US$2bil (RM8.9bil) under the new strategy.
In his first interview with international media since the government last week announced plans for state control of the metal key for electric vehicle batteries, Economy Minister Nicolas Grau told Reuters state miner Codelco would start talks over public-private lithium production “as soon as possible”.
While Codelco dominates copper output in Chile, the world’s top copper producer, the state has yet to produce lithium.
“Codelco’s conversations with the companies that operate in the Salar de Atacama, particularly with SQM, which ends its contract in 2030, is something that will begin immediately during this semester,” Grau said.
In a statement later, SQM said they met with Chile’s state development office Corfo to discuss the lithium strategy and said the company would need to invest US$2bil (RM8.9bil) of additional capital to achieve the plan’s sustainable goals.
Grau added that progress was also expected with US-based Albemarle Corp, the world’s top lithium producer, whose contract expires in 2043.
Albemarle and Santiago-based SQM are the only two lithium producers in Chile and operate in the Atacama salt flat, which has 90% of the Andean country’s lithium reserves.
Stocks for both companies plummeted on Friday following president Gabriel Boric’s nationalisation announcement. —Reuters
