Chile selects 6 sites for private lithium projects By Reuters

By Daina Beth Solomon and Fabian Cambero

SANTIAGO (Reuters) – The Chilean government has selected six priority areas for new lithium mining projects to be run by private companies, the South American country’s mining minister said on Thursday.

In October, the government will begin consulting with indigenous communities near the areas, while proposals from private firms will be announced on December 31, Mines Minister Aurora Williams added.

Chile is the world’s second largest producer of lithium metal for key batteries, with production currently coming from just two companies in the Atacama salt pan.

The government is working to boost manufacturing, both through efforts led by state-owned giant Codelco and by encouraging private investment.

Chilean authorities have already received around 20 expressions of interest for the six priority areas, which comprise five salt flats and a lagoon, and have been identified as having high potential for lithium extraction.

“We believe there will be effective competition given that these are the areas of greatest interest,” Williams told a news conference.

To obtain government approval for lithium mining, private firms must have expertise in the lithium value chain, adequate financial resources and own at least 80% of the mining concessions in the proposed project area.

Finance Minister Mario Marcel said the announcement of the six priority areas keeps Chile on track with its goal of developing three or four new lithium projects under President Gabriel Boric’s administration and increasing lithium production by 70 percent until 2030.

“We are taking all the necessary steps to meet these goals,” Marcel said.