According to mining executives and analysts on Wednesday, the Chilean (chile) govt’s new plan to bring in private investment at several of the nation’s lithium salt flats may run into issues that investors will find concerning due to unresolved details.
Industry participants expressed concerns about opposition from environmental activists and Indigenous communities, and they are seeking information on how agreements will be awarded by officials in the nation that is the world’s second-largest lithium producer.
According to officials on Tuesday, Chile will start soliciting proposals from private companies in April who are interested in extracting lithium. A crucial energy transition material used in batteries for electric vehicles, from 26 salt flats that are not designated for state control.
One of the new tenets of President Gabriel Boric’s 2023 lithium policy, which requires public-private partnerships, is the plan.
Atacama and Maricunga, two of its best salt flats, will be kept for majority control by the government through the state-run copper miner Codelco. While five other salt flats will see projects advanced by state-run businesses.
By the end of the decade, Chile’s output of lithium carbonate equivalent is expect to double due to state-developed projects alone. Reaching approximately 500,000 metric tonnes. According to Mining Minister Aurora Williams’ statement on Wednesday.