Chile Accelerates Lithium Extraction Projects with Six Key Areas

Chile's government has identified six priority areas for new lithium extraction projects, inviting private companies to lead these initiatives. Set to begin consultations with Indigenous communities in October, proposals from interested firms are due by December 31. The government aims to increase lithium production by 70% by 2030.

Chile's government has pinpointed six key areas for new lithium extraction projects, with private companies expected to spearhead these initiatives, according to Mining Minister Aurora Williams on Thursday. Consultations with Indigenous communities near the selected areas will commence in October, and proposals from private firms are due on December 31.

Currently, Chile stands as the world's second-largest producer of lithium, primarily from just two companies in the Atacama salt flat. The government is looking to bolster production efforts through state-run initiatives by Codelco and by attracting private investments.

Officials have already received around 20 statements of interest for the six priority zones, which encompass five salt flats and a lagoon identified as high-potential for lithium extraction. Williams expressed confidence in effective competition, citing the high level of interest in these areas.

Approval for lithium extraction by private firms will require relevant experience in the lithium value chain, significant financial resources, and owning at least 80% of the mining concessions in the proposed areas. Finance Minister Mario Marcel emphasized that the six priority areas align with Chile's goal of developing new lithium projects under President Gabriel Boric's administration, aiming for a 70% production increase by 2030.

"We're taking all necessary steps to meet these goals," stated Marcel.

(With inputs from agencies.)