Chile's nuclear agency clears Rockwood-Corfo deal
Chile's nuclear energy commission (CCHEN) has granted approval for the deal signed between US-owned lithium producer Rockwood and state development agency Corfo.
The agreement, signed by the two parties in February, will allow Rockwood to increase its lithium output in Chile.
Approval by CCHEN was a necessary condition as it has been the state agency in charge of giving the green light to any lithium-related business since the metal was declared strategic by the government in 1979.
Last month CCHEN initially ratified the agreement, but subsequent reports said the agency had stipulated several conditions that may have rendered it unviable.
CCHEN said in a statement that lithium mining represents an important opportunity for the north of the country to move to a new level of industrial development, "as the area is destined to be the main global center for solar energy development, for which lithium is strategic from the point of view of energy storage."
As part of its approval, CCHEN authorized the establishment of a strategic lithium reserve in the country, "which will allow its use for future generations, in case new technological advancements prove lithium's use for energy purposes."
THE DEAL
The agreement with Corfo allows Rockwood to raise production at its Atacama salt flat operations in Atacama region (III).
Under the deal, Rockwood can increase investment in the country by US$400-600mn over the next four years, which will allow the company to boost production of battery-grade lithium carbonate to up to 70,000t/y from about 24,000t/y currently.
The investment also covers the development of technology to produce 6,000t/y of lithium hydroxide locally.
Earlier this month US chemical group Albemarle, Rockwood's parent company, said it was confident the deal would be finalized by year-end.
Rockwood and local non-metallic miner and fertilizer group SQM are the only two private sector companies currently allowed to mine lithium resources in Chile since their concessions were granted prior to the resource being declared strategic.
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