Mining roundup: Lithium, water rights, Mara

Chile’s mining and energy minister Juan Carlos Jobet criticized president-elect Gabriel Boric’s position regarding the awarding of 160,000t of lithium in a tender. 

Boric said the details of the tender will be reviewed once he assumes office on March 11.

In a statement, Jobet said the award considered the concerns raised by Boric and his team such as incorporating criteria for the generation of local value, benefits for communities and investment in R&D within the special operating contracts (CEOLs) to be signed with the winners, as well as setting up a group to start discussion on a national lithium policy.

“I have always looked for agreements. Amid those considerations we met with the president-elect's team and agreed on very reasonable aspects, which are included in a document produced by them,” the statement read.

On Friday, the country’s copper research center Cesco expressed in a statement its concern about the bidding process.

“The absence of a clear public policy known by Chileans has been evident in the past and again this time, transforming lithium mining once again into a political battlefield,” the document reads. 

Water use

Chile’s upper house recently approved the long-debated reform to the water code, which is now ready to be signed into law and includes new regulations for the mining industry. 

Changes include that water found inside a mine pit must be registered with water directorate DGA within three months, and its use must not put at risk the sustainability of aquifers. 

Likewise, it establishes that in the case of termination, expiry, extinction or renunciation of usage rights, the water will be free to be reserved by the State to grant new rights.

Until now, the water code did not establish a detailed regulation for the mining industry.

Yamana’s Mara project

Reporting in its 4Q21 results, Canada’s Yamana Gold said that regarding the proposals for an interest in its Argentine Mara copper project (formerly Agua Rica), “any strategic initiatives will be considered closer to the completion of the feasibility study and application for permitting later this year”. 

The project, which is located in Catamarca province and is currently held by Yamana (56.25%), Glencore (25%) and Newmont (18.75%), is set to produce some 205,000t/y of copper for 28 years. 

Mara is also due to produce molybdenum, gold and silver as byproducts.