Chile losing lithium opportunity, says SQM

Chile, the world's second largest lithium producer after Australia, is losing the opportunity to take full advantage of booming demand for the white metal, according to Patricio de Solminihac, CEO of local producer SQM.

De Solminihac said that the lithium's status as a strategic mineral in Chile, a categorization imposed in the 1970s during the dictatorship of Augusto Pinochet, is not justifiable, adding that there is plenty of competition globally.

"[Authorities] need to move in the right direction and facilitate the development of exploration and exploitation projects, because today it is too regulated and restricted," De Solminihac was quoted as saying by local daily Diario Financiero.

The executive said the limitations in Chile contrast to the facilities provided in Argentina and Australia, where the company is developing the Cauchari-Olaroz (pictured) and Mt. Holland projects, respectively.

In the case of the Argentine project, being jointly developed with Lithium Americas, the executive said it has received provincial and federal support, while the Australian project, also being jointly developed with Kidman Resources, has been labeled as a priority initiative in order to speed up development.

De Solminihac said he expects the conflict with state development agency Corfo to be resolved as soon as possible, noting that under the existing contract, production from its facilities at the Salar de Atacama in Antofagasta region (II) is secured until 2023.