Chile's Enami stabilizes finances, paving the way for US$1.5bn Altoandinos lithium project

Chile’s state minerals company Enami managed to stabilize its financial situation in 2024 through a strategy focused on reducing part of its debt and controlling costs.

Improving its finances allows the company to position itself more favorably to continue fulfilling its role in promoting small-scale mining and advancing its US$1.5bn Salares Altoandinos lithium project in Atacama region.

The Altoandinos project is in the basic exploration phase, covering the Aguilar, La Isla and Grande salt flats, located at around 3,000m above sea level in the district of Diego de Almagro.

Enami is currently working on project engineering and conducting tests with direct lithium extraction technologies in its laboratory, as it awaits the award of the lithium operation contract (Ceol) from the mining ministry.

This is a feasible prospect following the ministry’s successful completion of an indigenous consultation process in January, a critical step for granting the Ceol.

At the same time, Enami continues to seek a partner or financier to form a public-private partnership to develop Altoandinos, as outlined in the national lithium strategy. The company stated in a recent announcement that the selected partner will be revealed in May.

In this partnership, Enami will contribute its expertise in salt flats, exploration experience and the Ceol, according to the statement.

Based on the timeline for Altoandinos, advanced exploration is scheduled for mid-2026, with a pre-feasibility study planned for 2027, a feasibility study in 2028, and the start of the environmental evaluation process in 2029. The goal is to begin production in 2032, Enami’s lithium superintendent, Jerónimo Verdugo, said at an event last month.

In its initial phase, Altoandinos is expected to produce 20,000t/y of lithium carbonate equivalent (LCE), with production projected to triple by 2037.

In 2024, Enami closed its financial year with an operating profit of US$51mn, recovering from an operating loss of US$132mn in 2023. This figure does not include the profit from the sale of its 10% stake in the Quebrada Blanca copper operation to state-owned copper giant Codelco, a decision made to help pay down debt.

Through this sale, Enami recorded a profit of US$181mn, the company announced in a statement on Tuesday.

However, the temporary shutdown of the Hernán Videla Lira smelter in February 2024 did affect last year’s positive results. Despite this, the measure helped improve cash flow and made the smelter’s modernization project viable.

A series of operational optimization initiatives also contributed to the improved financial performance.

“This allows us to project positive operational results for 2025 as well,” said the company’s executive vice president, Iván Mlynarz.

Ebitda reached US$209mn in 2024, compared to minus US$111mn in 2023, the company added in its statement.