Lithium Power International Ltd (fka LTHHF)

[Dr_Vonschellan]

Newly"Transparent"_SQM divulges_how much_they pay_indian communes
/tribes in detail https://www.latercera.com/pulso/noticia/las-cifras-reservadas-de-los-aportes-de-sqm-a-las-comunidades-indigenas-del-salar-de-atacama/7O4DZR6ZWBFQPLPXPAAX5PG554/
For English click https://www-latercera-com.translate.goog/pulso/noticia/las-cifras-reservadas-de-los-aportes-de-sqm-a-las-comunidades-indigenas-del-salar-de-atacama/7O4DZR6ZWBFQPLPXPAAX5PG554/?_x_tr_sl=es&_x_tr_tl=en&_x_tr_hl=en&_x_tr_pto=wapp

It is interesting to note that SQM's payments to the indian communes/tribes is in part based on how far from the mining center the commune/tribe is located in kilometers, see last paragraph... that key point is quite worth remembering in the future for us.

Google long hand English translation follows below in case you can't get the normal google translation listed above to work.

The Doctor
-------------------------------------
The confidential figures of SQM's contributions to the indigenous communities of the Salar de Atacama
by Victor Guillou

SQM maintains its investment plan for this year despite a sharp drop in profits

A document sent by Corfo to the Chamber of Deputies, responding to an official letter from PC deputy Boris Barrera, details how US$14.2 million have been distributed to date. Another US$20 million is yet to be distributed. The funds, corresponding to a percentage of lithium sales, are committed as part of the lease agreement between the company and the state agency, owner of the mining properties.

More than five years have elapsed since Corfo signed the re-negotiations of the lease agreements with SQM and Albemarle, in which the only companies that produce lithium in Chile promised to deliver a percentage of the sales of the so-called white gold to the Atacameño communities. . In fact, one of the clauses of said agreement establishes that in the case of the Chilean mining company, between US$10 million and US$15 million must be allocated annually for investment and development projects that promote the sustainable development of the communities that inhabit the basin. of the Atacama Salt Flat.

Since then, and according to a document sent by Corfo to the Chamber of Deputies, in response to an inspection letter from PC deputy Boris Barrera, the mining company in whose property Pampa Calichera and the Chinese Tianqi participate, has allocated a total of US$63.5 million to be distributed as contributions to indigenous communities, but from 2021 to date only US$14.2 million have been distributed.
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This is explained for two reasons. The first, because the contributions charged to the results of 2018, 2019 and 2020 were grouped into a fund called the
1. AIA Accumulated Initial Contribution,
2. from which an advance of 30% would first be delivered to the communities that signed an agreement with Corfo.
3. Date disbursement.
4. Then, 70% would be delivered according to the progress of the initiatives.
5. Date fees charged at 70% AIA
6. Added to the above was a Supreme Court ruling that forced Corfo to carry out an indigenous consultation process for the contributions charged to the results from 2021 onwards, and that they keep US$28.9 million of the total contributions of the company blocked. mining for communities

Despite the fact that the official letter requests that the information be kept "in complete reserve and confidentiality", the document available on the Chamber's web portal reveals unknown details of how the contributions delivered up to this year have been distributed. In fact, it specifies the amounts and dates of the transfers made to 19 of the 21 communities that accepted the distribution formula approved by the Corfo Council (see table).

Contributions from SQM Salar to indigenous communities of the Salar de Atacama, by virtue of the contract with Corfo (corresponding to 2018, 2019 and 2020 results)

1. Community
2. AIA (US$)
2. Amount Advance 30% (US$)
3. Date of advance
4. Advance Amount fees charged to 70% AIA (US$)
5. Current balance AIA (US$)
Catarpe $1,298,297 $389,489 12-30-2021 $0 $908,808
Farmers and Irrigators of the Vilama River $1,052,233 $315,670 01-14-2022 $312,513
03-10-2023
06-23-2023
07-07-2023 $424,050
Solcor $1,203,465 $361,040 01-07-2022 $0 $842,425
Solor $1,267,858 $380,357 01-14-2022 $0 $887,501
Tulor and Beter $1,145,536 $343,661 12-30-2021 $0 $801,875
Yaye $1,132,537 $339,761 12-30-2021 $0 $792,776
Guatin $1,212,240 $363,672 01-14-2022 $0 $848,568
Rio Grande $1,667,464 $500,239 12-30-2021 $1,167,225.0
11-11-2022 $0
Cúcuter $1,260,612 $378,184 03-31-2022 $0 $882,428
Punta de Tocol, Alis, Celeste and Puques $1,121,633 $336,490 03-11-2022 $538,384 $246,759
San Pedro de Atacama $3,129,136 $938,741 12-02-2022 $0 $2,190,395
Socaire $2,037,016 $611,105 02-11-2022 $0 $1,425,911
Comb $2,289,507 $686,852 04-08-2022 $1,076,068 12-02-2022
05-26-2023 5$26,587
Toconao $5,055,445 $1,516,634 03-03-2022 $0 $3,538,811
Talabre $1,251,874 $375,562 02-11-2022 $876,312 11-11-2022
01-27-2023 $0
Larache $1,294,638 $388,391 05-02-2022 $712,051
03-31-2023 $194,196
Coyo $1,845,332 $553,599 07-15-2022 $0 $1,291,733
Follower and Check $1,138,327 $341,498 02-05-2022 $0 $796,829
Quitor $1,467,607 $440,282 05-02-2022 $0 $1,027,325
Machuca $1,331,721 - - - - $1,331,721
Camera $1,460,963 - - - - $1,460,963
TOTALS $34,663,441 $9,561,227 $4,682,553 $20,419,661

Thus, of the US$63.5 million that SQM has allocated from its lithium sales between 2018 and 2022 to this objective, only US$35.6 million is in the process of being delivered to the 19 communities that entered into the agreement with Corfo. And of this, US$990 thousand were destined to finance the collaborating organization designated by SQM to provide the necessary support for the generation and organization of investment projects in the communities. This body corresponds to the Center of International Excellence of the Sustainable Minerals Institute (SMI) of the University of Queensland. Thus, the communities were left with US$34.6 million to distribute.

The detail of the distribution shows that only two of the 19 communities have completed the delivery of the contributions available to them. These are Río Grande and Talabare, which concluded the receipt of the money in November 2022 and Energo in 2023, respectively.

However, it also highlights that of the total number of communities, two appear with assigned funds of over US$3 million. These are the communities of Toconao and San Pedro de Atacama. The figures respond to the fact that they are the most numerous communities of all, according to sources from the Council of Atacameños Towns.
indigenous consultation

Contributions from 2021 onwards "can only be delivered once Corfo carries out the indigenous consultation process ordered by the Supreme Court," recalls the official letter from the state entity sent to the Chamber of Deputies.

The foregoing responds to a ruling of August 26, 2022, in which the highest court accepted the claim of the Atacameña de Camar Indigenous Community filed against the process. Camar's claim questioned the formulas established by Corfo for the allocation of contributions.

Consulted, Corfo declined to give details on the progress of the indigenous consultation that will define the distribution of these contributions.

The formula approved by Corfo contemplates different weightings and criteria. 50% of the contributions are distributed equally among the 21 communities considered likely to receive contributions. Hence, the official letter details the amounts assigned to Camar and Machuca, despite not having signed the agreements with Corfo.

The other half of the funds are distributed as follows: 40% in proportion to the number of members in each community and the remaining 10% according to the distance of each community from SQM's work in the Salar de Atacama.