Chile's Boric rules out private lithium concessions – Reuters

Chilean President Gabriel Boric will reject a proposal from some members of Congress that would allow private lithium concessions, asserting that his nationalization plans are better for the country, Reuters reported Aug. 11.

"As long as I'm president, lithium will belong to all Chileans," Boric said at an event in Santiago, Chile. "That's why we're against this initiative."

In April, Boric announced that the state will take a majority stake in all new lithium projects and all new contracts for existing projects. Under the proposal, state-owned Codelco and Empresa Nacional de Minería, which partners with small miners, will be in charge of expanding the state's lithium production and deciding which projects can be developed through public-private partnerships.

New lithium exploration contracts will be awarded through public tender, and private companies that win contracts will get first rights to partner with a state-owned company to extract the ore.

The new policy also requires the country's two largest lithium producers, Albemarle Corp. and Sociedad Química y Minera de Chile SA (SQM), to partner with Codelco after their current contracts expire. Albemarle's contract expires in 2043, while SQM's contract expires in 2030.

Since the announcement, industry observers said Boric's plan faced long odds in Chile's fractured Congress.

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