Chile's Mining Ministry announced on December 5th that the government has designated an additional six lithium extraction sites open to private companies, in addition to the six previously announced in September.
According to Chile's National Lithium Strategy and the approval of the Strategic Committee of the Lithium and Salt Committee, the government has determined the initiation of procedures to assign Lithium Operation Contracts (CEOL) for these six new priority lithium mining areas to private companies.
This follows the first batch of six lithium mining areas announced in September this year, which are open for private capital to apply for lithium mining qualifications.
These six new projects, which allow private companies to carry out lithium exploration and development, are mainly located in the northern regions of Chile, specifically in the Tarapaca region and the Antofagasta region, including the Hilaricos and Quillagua Norte areas in the Tarapaca region, and the Quillagua Este, Quillagua Sur, María Elena Este, and Cerro Pabellón areas in the Antofagasta region.
Among them, the Cerro Pabellón in the Antofagasta region will have a separate application procedure due to the presence of a geothermal energy project.
According to a statement from the Chilean Ministry of Mining, the second group of six areas announced "consists of deposits of great interest for the development of lithium exploration and development projects and other mineral developments." The government will allow private companies involved in these projects to carry out polymetallic mining, lithium clay mining, and geothermal resource utilization, and promote private capital or consortiums to innovate in lithium exploration and lithium resource development using techniques different from traditional salt lake lithium extraction.
The Chilean Ministry of Mining also stated that the deadline for private companies to submit proposals for all 12 open lithium mining rights areas has been extended to January 31, a one-month extension from the original deadline of December 31 for the first batch of lithium deposits.
Private entities must have experience in the lithium value chain, adequate financial resources, and control at least 80% of the mining concessions in their proposed project area to gain government approval.
As the world's leading copper producer and the second-largest lithium producer, Chile is increasing its investment in the country's mining industry. According to recent release from Reuters, Chile plans to inject approximately $83.18 billion into its mining industry from this year through 2033, a 27% increase from the previous year's estimate, as reported by the Chilean Copper Commission (Cochilco) in a recent study. The report outlines 51 upcoming mining projects in Chile, with more than half of the total investment, amounting to $42.96 billion, earmarked for projects between 2024 and 2026.
Additionally, the report shows that global lithium consumption for lithium batteries is expected to reach 1.25 million tons by 2025, accounting for 89% of total lithium consumption, with lithium consumption for electric vehicle batteries accounting for two-thirds (67%) of total lithium consumption. Furthermore, lithium consumption in glass, ceramics, grease, lubricants, pharmaceuticals, and other industries will decrease from 16% in 2023 to 11% in 2025.
