Chile’s Mining Minister Confident in Lithium Investment Despite Price Dip
Chile's Mining Minister Aurora Williams has expressed confidence in the continued interest of lithium companies in new projects, despite the recent decline in lithium prices. In discussions with the media, Williams highlighted that, despite the price fluctuations, companies are looking ahead, considering the global push for energy transition and climate change mitigation.
The interest in investing in Chile, which boasts the world's largest lithium reserves, seems undeterred by the more than 40% drop in lithium prices following President Gabriel Boric's announcement of a new public-private partnership model. This model aims to attract investment while ensuring the most valuable deposits remain under the control of the state-owned corporation, Codelco.
Recent interactions with global lithium and mining firms, including Rio Tinto Group from London and Tsingshan Holding Group Co. from China, indicate sustained interest in Chile's lithium sector. Other companies like Tianqi Lithium Corp. and France’s Eramet SA have also shown enthusiasm towards the new investment model.
Investors are particularly interested in learning which salt flats will be open for exploration and which will be conserved. The government's strategy involves offering minority stakes to private-sector partners in strategically important areas, while potentially allowing them control in areas of lesser importance. Detailed answers to these inquiries are expected by the end of the next month, with contract specifics to be finalized by the end of June, according to Minister Williams.
Williams' comments came as she prepared for a trip to the PDAC mining convention in Toronto, where Chilean authorities plan to meet with potential investors. The discussions on lithium and copper are timely, especially ahead of Treasury Secretary Janet Yellen's visit to Chile, emphasizing the United States' interest in establishing EV supply chains with its trade partners.
Chile, currently the second-largest lithium supplier globally and the top copper supplier, faces challenges in maintaining its lithium market share, with production confined to two operations on a single significant salt flat.
