The legal hurdle facing Chile’s lithium tender

Results of the 400,000t lithium exploration and production tender launched in October by the Chilean government are set to be published on January 14, but the process is currently facing a legal hurdle. 

Minera Salares del Norte asked the antitrust tribunal to suspend the process, arguing it would violate free competition. 

The company alleges that bidding rules requiring guarantees equal to the price offered are too high, meaning global lithium firms could be favored.

This week the country’s lithium chamber and the trade association of industrial miners Asogemin, who mostly deliver ore to state company Enami for processing, sided with Salares del Norte. 

The antitrust tribunal has notified the economic prosecutor's office as well as other companies participating in the tender, namely Salar de Maricunga, state copper miner Codelco, SQM, Tianqi, Albemarle, Livent and Ganfeng, of the situation and gave them a deadline to provide more information. 

BNamericas contacted the mining ministry but a spokesperson was not available. 

The tender will be divided into five quotas of 80,000t of lithium carbonate, lithium hydroxide, lithium bromide or lithium chloride. Bidders can make offers for up to two quotas anywhere in the country.

The special operating contracts, known as CEOLs, signed with the winners will include a seven-year period for exploration, study and project development, which may be extended by up to two years. This will then be followed by a 20-year production period.

Sale prices of the lithium produced will be negotiated according to market conditions.

Photo credit: Chile's mining ministry