Chile’s state-run mining giant Codelco is set to embark on a strategic alliance for a groundbreaking lithium venture at Maricunga, one of the nation’s prime salt flats, declared Chairman Maximo Pacheco on Monday.
With President Gabriel Boric’s administration prioritizing state involvement in Chile’s lithium mining sector, Codelco’s foray into lithium marks a significant move. The project follows Codelco’s acquisition of Australia’s Lithium Power International, consolidating its Maricunga presence to around 65%.
Partner selection, slated for the first quarter of the upcoming year, is in full swing, facilitated by financial advisor Rothschild. The chosen collaborator will claim a 49% stake in the venture, reflecting Codelco’s openness to strategic alliances.
Simultaneously, Codelco is advancing negotiations with Chile’s SQM in the Atacama salt flat, renowned for its lithium-rich reserves. However, complexities loom as community consultations face setbacks, with several groups withdrawing over perceived negotiation insincerity.
Despite the impasse, preliminary agreements have secured SQM’s concession handover in Maricunga to Codelco. Notably, the winning partner need not prioritize direct lithium extraction (DLE), underscoring Codelco’s gradual transition towards eco-friendly extraction methods.
Pacheco’s announcement, made at the CRU World Copper Conference and CESCO Week, coincided with Codelco’s $4 billion investment to revitalize copper production. As mega-projects unfold, such as the Andesita mine and Chuquicamata upgrades, Codelco remains cautiously optimistic, weighing potential debt financing against buoyant copper market prospects amidst the global energy transition.
