Lithium: international mega-operation jeopardizes SQM leadership
Wednesday, October 10, 2012 5:00
It is buying the Australian dela Talison by Rockwood Holdings in the U.S. about $ 732 million.
The eyes of the Chilean miner SQM-linked to Julio Ponce and Canada's PCS-were not only the first failed tender Lithium Operating Agreement (Ceol), but also fell on a international mega-operation materialize affect all market: buying the Australian Talison by Rockwood Holdings in the U.S. about $ 732 million.
As commented knowledgeable of the operation, this is in the final steps of the "closing period", which coming to fruition would change the landscape of the lithium market, where SQM has prevailed worldwide.
According to SQM data, the company has a market share of around 31%, if we consider only the chemical lithium, SQM participation reaches 38% - business that represents about 9% of total sales signature. But these numbers change from 2013, and operating the new Rockwood.
New company "would have larger capacity market"
The general manager of the consulting signumBOX, Daniela Desormeaux, says Australia's Talison produces lithium concentrate from its spodumene mine in Australia, being the world's largest producer of concentrate "that sends mostly to China where it is transformed lithium carbonate and lithium hydroxide by other companies. "
Also Talison is evaluating the construction of a plant in Australia carbonate. Specialist explains that the company recently increased its production capacity to 110,000 tonnes LCE (lithium carbonate equivalent)
Previously, the company had bought Talison Lithium Salares which had the Salares 7 project in Chile.
Desormeaux holds that "if certain acquisition, Rockwood more Talison conglomerate would have the largest production capacity in the market with about 140,000 tonnes of LCE, almost the entire market. SQM would be the second in app.48.000 productive capacity."
The U.S. has a stake in Chile Rockwood by former Chilean Society of Lithium (SCL), the only competitor for this market SQM in Chile, with production facilities in the Salar de Atacama.
Why Talison Rockwood would be interested in? "I think there are several reasons to enter a strategic China where Talison is strong, also to diversify the business," CEO responds signumBOX.
According to projections by consultancy materialize this year operation, SQM would with 19% of production capacity versus 55%.
