The Chilean President, Gabriel Boric, announced this thursday the creation of a public-private association for the exploitation of lithiuma mineral of which the country is the second largest producer in the world, as well as the production of technological products.
“The State will participate in the entire productive cycle of the mineral. The exploration, exploitation and value additionwe will do it based on the principle of virtuous public-private collaborationBoric said in a national chain message.
The president also announced sending to Congress a bill to create the National Lithium Company.
Chile is -behind Australia- the second world producer of lithiumwhich explodes only from the Atacama Salt Flats, in the Antofagasta region, about 1,700 km north of Santiago. Also, their Bookings of this mineral are among the world’s greatestaccording to the United States Geological Survey (USGS).
This is also a mineral that “is key in the fight the climate crisis and an opportunity for economic growth that is unlikely to be repeated in the short term,” said Boric.
Another of its principles is that the entire process will be carried out with the participation and involvement of the communities surrounding the mining operations. “The first milestone in this process will begin with a direct conversation between the Council of Atacameños Towns and myself“, promised the president, who will travel to the city of Antofagasta on Friday to deliver more details of the plan, which was one of the most outstanding points of his government program.
“It’s the best chance we have to move towards a sustainable and developed economy. We cannot afford to waste it,” added the Chilean president.
Boric assured that the State will be present on all farms but did not say how much the share would amount to. “Our challenge is for our country to become the world’s leading lithium producer,” she said.
through the National Lithium Companythe Chilean State will also seek “partners“for the development of projects for the generation of high technological value products. If it is formed, this company will be controlled by the state copper company Codelcocurrently the world’s leading copper producer.
Boric compared its lithium exploitation plan with the government’s decision Eduardo Frei Montalva (1964-1970) by nationalize 51% of copper miningand the president Salvador Allende, with the unanimous agreement of Congress, in 1971, of nationalize the remaining ownership of the copper industry.
Boric’s proposal is similar to some initiatives that are carried out in Argentinasuch as the creation of Y-TEC, to industrialize, together with private companies, the lithium extracted in the north of the country.
Lithium: the key mineral of the energy transition
Lithium is used to make energy storage batteries, electric cars and buses, and its demand has grown strongly in recent years at a time when the world seeks to move away from fossil fuels to curb global warming.
In 2022, lithium became the second product that contributed the most to Chile’s GDP after copper derivatives, of which the country has been its main world producer for several decades.
Last year the lithium carbonate exports grew more than six timesgoing from 1,233 million dollars in 2021 to 8,930 million dollars last year, according to data from the Central Bank of Chile.
The lithium that Chile currently extracts from the Atacama Salt Flats is exploited under a system of concessions by the Chilean company SQM and the American company Albemarlerepresenting more than 30% of the global market. There are also more than 60 salt flats and saline lagoons in the country.
Source: Ambito
