Chile Selects Priority Areas for Lithium Extraction

By Daina Beth Solomon and Fabian Cambero

SANTIAGO (Reuters) – Chile's government has selected six priority areas for new lithium extraction projects to be led by private companies, as announced by Mining Minister Aurora Williams on Thursday.

In October, the government will begin consulting Indigenous communities near these areas, with proposals from private firms due by December 31. Chile is the world's second-largest producer of lithium, currently produced by two companies in the Atacama salt flat.

The government aims to boost lithium production through both state-run efforts by Codelco and by encouraging private investment. Authorities have received about 20 statements of interest for the priority areas, which include five salt flats and one lagoon identified for their high potential for lithium extraction.

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

To gain approval for lithium extraction, private firms must have:
– Experience in the lithium value chain
– Adequate financial resources
– At least 80% of mining concessions in the proposed area.

Finance Minister Mario Marcel noted that the selection of these areas aligns with the target of developing three or four new lithium projects during President Gabriel Boric's administration and aims for a 70% increase in lithium production by 2030.

“We're taking all the necessary steps to meet these goals,” Marcel added.