Chile advances process to award lithium contracts

Chile has concluded the initial phase of the process to receive private-sector applications for special lithium operation contracts (Ceols), attracting submissions from seven companies and consortiums.

In this stage, the government sought proposals for exploration or extraction projects in six salt flats: Coipasa in Tarapacá region, Ollagüe and Ascotán in Antofagasta, and Piedra Parada, Agua Amarga and Laguna Verde in Atacama region.

A working group that is part of the mining ministry will review the submissions within 45 business days, according to a statement.

The private entities selected to advance in the Ceol process, which is part of the national lithium strategy, will be announced at the end of March.

Raúl del Barrio, CEO of RJR Salar and holder of several mining concessions in salt flats, told BNamericas that he expects a contract to develop lithium projects “in Coipasa will to go the Fra Fra group, in Ascotán to a consortium made up of Eramet, Quiborax and Codelco, and in Laguna Verde to CleanTech Lithium, which should be ready.”

In the Coipasa salt flat, there is already a project developed by the Errázuriz group and Lithium Chile, Del Barrio said. 

In Ascotán, French firm Eramet, Chilean boric acid producer Quiborax and state miner Codelco are interested in exploring an area Quiborax knows well because it has been operating a ulexite mine there since 2006.

Meanwhile, at Laguna Verde, CleanTech has concluded a prefeasibility study to develop a US$383mn project, which is expected to produce 20,000t/y of lithium carbonate equivalent during 30 years.

The mining ministry is also preparing indigenous consultations in Atacama, Antofagasta and Tarapacá, specifically linked to the Coipasa, Ascotán and Ollagüe salt flats.

“During February and early March, resolutions will be published to begin indigenous consultations in Agua Amarga, Piedra Parada and Laguna Verde,” the ministry said in the statement.

Deadline extension

The government has extended the application deadline for the second group of lithium deposits to March 7.

Companies interested in a Ceol in the Hilaricos and Quillagua Norte areas in the regions of Tarapacá and Antofagasta, and in Quillagua Este, Quillagua Sur and María Elena Este in Antofagasta, will have more time to prepare their submissions.