Chile offers more lithium extraction areas to private sector

Chile has launched another process for the allocation of special private sector contracts (Ceoles) related to six new areas that are suitable for the exploration and extraction of lithium and other minerals.

These areas were designated by an inter-ministerial committee and are: Hilaricos and Quillagua Norte in the regions of Tarapacá and Antofagasta; and Quillagua Este, Quillagua Sur, María Elena Este and Cerro Pabellón in Antofagasta, according to a press release.

The areas have potential for polymetallic projects and lithium extraction from clays, including the possibility of applying innovative solutions.

Private companies and consortiums may submit a Ceol application for each prioritized system through January 31. They must prove that they have experience in mining or in some stage of the lithium value chain.

It will also be essential to have the financial capacity to develop a project and to hold a percentage of mining concessions equivalent to or greater than 80% of the polygon in any of the deposits.

The mining ministry will carry out indigenous consultations and issue a supreme decree to define the conditions of each contract. 

A contract will then be presented to the applicant, and if both parties reach an agreement, a public tender will not be necessary, the release said.

The Ceol allocation procedure will be similar to the first process for most areas, but differ for Cerro Pabellón because a geothermal energy generation project is at the site.

"With this announcement we have completed a total of 12 priority areas for the allocation of Ceoles to local and international private companies or consortiums, which represents 50% of the valid expressions of interest," mining minister Aurora Williams told local media.

This second set of saline systems was defined after reviewing over 80 expressions of interest the government received through a public call for proposals.

Previous process

The deadline for receiving information from parties interested in exploration or extraction at sites in the first group of deposits has been extended until January 31.

Additionally, certain requirements related to mining concessions equivalent to or greater than 80% of the polygon of interest will be simplified. Details are available here, in Spanish.

The national lithium strategy to boost the industry is facing some challenges, one of which relates to personnel.

Although enough qualified professionals exist to handle the operations of SQM and Albemarle in the Salar de Atacama, projections and technological changes, such as the government's interest in direct extraction, alter the situation.

“We don’t yet have enough professionals or specialized suppliers to address these innovations autonomously. For example, direct lithium extraction has mainly been developed abroad. It will be crucial to invest in training advanced human capital and foster an innovation ecosystem,” the executive director of Universidad Católica del Norte's lithium R&D center, Hernán Cáceres, told BNamericas.

Cáceres said that because Chile hosts the world's largest lithium reserves, it "gives us the possibility not only to lead production, but also to develop and export advanced technologies."