Sunday, April 01, 2012 3:15:50 PM
Mining ministry calls on Codelco
Mining ministry calls on Codelco to evaluate participation in lithium industry - Chile
Published: Friday, March 23, 2012 17:10 (GMT -0400)More news from Chile
By Victor Henriquez / Business News Americas
Chile's mining ministry has again called on state copper producer Codelco to evaluate its potential participation in the country's lithium industry.
"We hope that Codelco could have a significant role in lithium mining in the country," deputy mining minister Pablo Wagner said at a conference on the subject, organized by Codelco's copper workers federation (FTC).
Codelco owns lithium concessions in the Pedernales salt lake in northern region II, which were granted before the mineral was declared strategic by law and its mining was restricted.
The government granted concessions over five salt flats in northern Chile in 1932, but the mineral was declared strategic and further concessions forbidden by a constitutional reform in 1979.
"The Chilean state, through Codelco, can take part in the lithium market. It can do it today. It does not even need to participate in the tender processes for the special contracts that the government is working on," Wagner said.
Codelco executives only need to cross the street to the national nuclear commission CCHEN and ask for the authorization to start mining lithium from Pedernales, according to the deputy minister.
"We have asked Codelco to at least evaluate the market. I understand the company has other priorities, but it's perfectly capable of doing it by itself or in association with a private company," Wagner said.
In February, the ministry announced plans to award special contracts for lithium development.
The 20-year special lithium concession contracts will allow companies to mine up to 100,000t of lithium. During the contract period, it is estimated that the state could collect US$350mn for each project approved.
However, Codelco has been lukewarm on the subject. "We have lithium reserves... We're going to evaluate the possibility, but it's not part of our strategy," CEO Diego Hernández said recently.
Currently, the only companies authorized to mine lithium in the country are local non-metallic firm SQM (NYSE, BCS: SQM) and the local subsidiary of Germany's Chemetall Lithium, Sociedad Chilena del Litio (SCL).
Both were granted concessions before lithium was declared strategic.
Simbalik
However, a new competitor is about to enter the market. Taiwan-based Simbalik Group was recently granted authorization by CCHEN to start mining lithium from a concession at the Salar de Maricunga salt lake in northern Chile that dates from 1932.
Several companies - such as Lima-based Li3 Energy (OTC.BB: LIEG), Australia's Talison Lithium and US-based Pan American Lithium (TSX-V: PL, OTCQB: PALTF) - are currently exploring for lithium in Chile.
Codelco owns these concessions in the Maricunga just north of Mammoth's concessions.
If Codelco is not interested in mining their own claims and they are being called upon to consider mining lithium, then these claims become very valuable to a J/V partner. We already know that LI3 Energy & Pan American have negotiated deals and Simbalik is free to begin production. It appears that MMTE has numerous potential partners in the area.
Big picture of Codelco, Simbalik & Mammoth Energy concessions
I firmly believe the Maricunga could be a big hot spot for activity for MMTE in the very near future.[/b]
Mining ministry calls on Codelco to evaluate participation in lithium industry - Chile
Published: Friday, March 23, 2012 17:10 (GMT -0400)More news from Chile
By Victor Henriquez / Business News Americas
Chile's mining ministry has again called on state copper producer Codelco to evaluate its potential participation in the country's lithium industry.
"We hope that Codelco could have a significant role in lithium mining in the country," deputy mining minister Pablo Wagner said at a conference on the subject, organized by Codelco's copper workers federation (FTC).
Codelco owns lithium concessions in the Pedernales salt lake in northern region II, which were granted before the mineral was declared strategic by law and its mining was restricted.
The government granted concessions over five salt flats in northern Chile in 1932, but the mineral was declared strategic and further concessions forbidden by a constitutional reform in 1979.
"The Chilean state, through Codelco, can take part in the lithium market. It can do it today. It does not even need to participate in the tender processes for the special contracts that the government is working on," Wagner said.
Codelco executives only need to cross the street to the national nuclear commission CCHEN and ask for the authorization to start mining lithium from Pedernales, according to the deputy minister.
"We have asked Codelco to at least evaluate the market. I understand the company has other priorities, but it's perfectly capable of doing it by itself or in association with a private company," Wagner said.
In February, the ministry announced plans to award special contracts for lithium development.
The 20-year special lithium concession contracts will allow companies to mine up to 100,000t of lithium. During the contract period, it is estimated that the state could collect US$350mn for each project approved.
However, Codelco has been lukewarm on the subject. "We have lithium reserves... We're going to evaluate the possibility, but it's not part of our strategy," CEO Diego Hernández said recently.
Currently, the only companies authorized to mine lithium in the country are local non-metallic firm SQM (NYSE, BCS: SQM) and the local subsidiary of Germany's Chemetall Lithium, Sociedad Chilena del Litio (SCL).
Both were granted concessions before lithium was declared strategic.
Simbalik
However, a new competitor is about to enter the market. Taiwan-based Simbalik Group was recently granted authorization by CCHEN to start mining lithium from a concession at the Salar de Maricunga salt lake in northern Chile that dates from 1932.
Several companies - such as Lima-based Li3 Energy (OTC.BB: LIEG), Australia's Talison Lithium and US-based Pan American Lithium (TSX-V: PL, OTCQB: PALTF) - are currently exploring for lithium in Chile.
Codelco owns these concessions in the Maricunga just north of Mammoth's concessions.
If Codelco is not interested in mining their own claims and they are being called upon to consider mining lithium, then these claims become very valuable to a J/V partner. We already know that LI3 Energy & Pan American have negotiated deals and Simbalik is free to begin production. It appears that MMTE has numerous potential partners in the area.
Big picture of Codelco, Simbalik & Mammoth Energy concessions
I firmly believe the Maricunga could be a big hot spot for activity for MMTE in the very near future.[/b]
This is only my opinion, not an endorsement to buy or sell anything. Buying stocks is risky; you could lose all of your investment. Always do your DD.
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