Lithium rush: The opportunities in Chile’s high-altitude salt flats

Private-sector companies can apply for special lithium operating contracts (Ceols) in six Chilean salt flats until December 31. 

Successful development of exploration or extraction projects depends on critical factors such as the flats' altitude, mineral concentration, proximity to international borders, presence of salt crusts or clays, protected areas and existing mining concession holders.

The Chilean government will only issue one Ceol per system. The initial list of salt flats includes Salar de Coipasa (Tarapacá region), Ollagüe and Ascotán (Antofagasta region), and Piedra Parada, Agua Amarga and Laguna Verde (Atacama region).

All of these sites are situated over 3,500 meters above sea level (masl), with some at more than 4,000masl. The high-altitude location will mean that conditions for construction will be very harsh, particularly during winter.

Conditions are notably different on the main salt flat of Salar de Atacama, currently exploited by local firm SQM and US-based Albemarle, which sits at 2,300masl with a basin covering 18,100km², of which 986km² is salt flat. The average lithium concentration reaches 1,500Li/ppm.

Details of salt systems

Salt flat	Altitude	Basin Area	Salt flat Area	Lithium concentration
Laguna Verde	4,350masl	1,075km2	15km2	200Li/ppm
Piedra Parada	4,150masl	388km2	28km2	288Li/ppm
Ascotán	3,716masl	1,757km2	243km2	-
Ollagüe	3,705masl	-	31km2	480Li mg/l
Coipasa	3,700masl	2,239km2 (mostly in Bolivia)	-	-
Agua Amarga	3,558masl	863km2	23km2	60Li/ppm

Nevertheless, opportunities exist. 

"In Laguna Verde, just like in the Salar de Maricunga, years ago, a mudslide inundated the area, causing water to settle at a depth of up to 2 meters in certain sections. This event spread lithium throughout both the brine and the now-dry areas, such as salt crusts or clays, where rare earth elements might also be found," Cecilia Fuentealba, a cartographer and expert in mining property, told BNamericas.

The proximity of some sites to volcanic complexes enhances the potential for lithium deposits due to past volcanic caldera explosions affecting subsurface and surface areas, she added. 

The flats' proximity to border areas is also significant, as these fragile and interconnected ecosystems mean any extraction could impact neighboring reservoirs.

Coipasa is the second-largest salt flat in Bolivia, extending across Oruro in Bolivia and Chile's Tarapacá region, while Ollagüe extends from Bolivia’s Salar de Chiguana.

Ascotán, for instance, is separated from Ollagüe by volcanic formations and has been a crucial water source for El Abra copper mine, co-owned by  Freeport McMoran and Chile's state-owned company Codelco. 

Ascotán is also a biodiversity hotspot, and Piedra Parada is recognized by national forestry corporation Conaf as a critical nesting area for flamingos.

Ceol requirements and key stakeholders

Only companies or consortia with experience in some phase of the lithium value chain and holding mining concessions for at least 80% of a salt flat’s area while demonstrating financial capacity for project development can participate in the upcoming Ceol auctions. 

Existing concession holders may also play a role: French company Eramet, which recently acquired concessions from Salares de Atacama SCM and Talison (a firm jointly belonging to Albemarle and Tianqi Lithium), owns the entirety of Agua Amarga and large part of Piedra Parada.

In Coipasa, Canadian company Lithium Chile, through its subsidiary Minera Kairos, holds 36 exploration and three exploitation concessions covering 11,300ha, while Grupo Errázuriz has expressed interest in partnering with the State. 

Meanwhile, Canadian firm Wealth Minerals has its Kuska project in Ollagüe across 10,500ha and the basin is all occupied. "There are even cases of mining concessions overlaps between Codelco, Wealth Minerals and private investor Terence Walker", Fuentealba said.

In Laguna Verde, Anglo-Australian company CleanTech has a project of the same name spanning 217km², while in Ascotán, Chilean boric acid producer Quiborax holds 23,000ha, or 80% of the aquifer, and may need to negotiate with Canada's First Lithium, which holds exploration rights on 1,800ha there.

A second group of salt flats is expected to be presented by year-end and after consultations with indigenous communities the government will announce each Ceol terms. 

Other key points for the private sector will be to consider proximity to road networks, electrical infrastructure and water supply pipelines.