Codelco Marks Entry into Lithium Business with Acquisition of Australian Firm Lithium Power International

Codelco, Chile's state-owned copper mining company, has finalized the acquisition of Lithium Power International (LPI), an Australian firm at the helm of the Salar Blanco project. The transaction, valued at approximately US$244 million, involved a payment of AU$0.57 per share to LPI shareholders on March 7.

Following this milestone, LPI confirmed to the Australian Securities and Exchange Commission (ASX) that its shares would be delisted from the Oceanic stock exchange, marking the takeover's completion by Codelco. All shares of LPI are now transferred to Salar de Maricunga SpA, a subsidiary of Codelco established in June 2017.

The Salar Blanco project, situated in the Salar de Maricunga, is adjacent to mining properties already owned by Codelco in the region. This area is recognized as the world's second-largest deposit in terms of lithium concentration, positioning Codelco strategically in the global lithium market.

Máximo Pacheco, Codelco's board chairman, highlighted the strategic nature of this acquisition, stating, "This is a very strategic purchase for Codelco, not only because of the creation of value it generates for the company, the neighboring communities, and the country, but also because it means taking a step further in our mission to position ourselves as a relevant player in the world energy transition, with the responsible production of copper and lithium that the planet requires to confront global warming."

Codelco aims to leverage its extensive mining experience to maximize the Salar Blanco project's value while minimizing development risks. The company cites its familiarity and proximity to the Atacama Region, where its Salvador Division operates, as significant advantages.

With this acquisition, Codelco will control over 80% of the mining properties in the Salar de Atacama, encompassing more than 14,000 hectares. The Salar Blanco project, bolstered by an approved Environmental Qualification Resolution (RCA), is well-positioned for expedited development, marking a new era for Codelco in the burgeoning lithium sector.