Codelco partners with Rio Tinto in a $900 million investment to extract lithium from Chile’s Maricunga salt flat. The joint venture aims to tap into the world’s second-largest lithium deposits, enhancing Chile’s role as a leading lithium producer. Codelco retains a 50.01% stake, while Rio Tinto holds 49.99%.
In a significant move within the lithium market, Chile’s state-owned copper corporation, Codelco, has announced a collaboration with British-Australian mining giant Rio Tinto. This partnership aims to extract lithium from the Maricunga salt flat, renowned for housing the world’s second-largest deposits of lithium. The increasing demand for this metal, essential for electric car and smartphone batteries, has prompted mining companies to vie for access to these rich resources.
The Maricunga site, located in northern Chile, is noted for its high lithium brine concentration and ranks just behind the more famous Atacama salt flat. With this venture, Codelco is poised to deepen its involvement in the lithium industry, as the country is already the second-largest lithium producer globally, following Australia. Currently, all lithium extraction in Chile is sourced from the Atacama salt flat.
In a strategic move to enhance its operations, Codelco revealed that Rio Tinto will invest around $900 million to hold a 49.99 percent stake in the newly formed joint venture, named Salar Maricunga SpA. Meanwhile, Codelco will maintain a controlling interest of 50.01 percent, ensuring they retain significant influence over the project.
Chilean President Gabriel Boric has also emphasized the need to increase lithium output as part of a broader initiative to create public-private partnerships aimed at tapping into various sources of lithium within the nation. This collaboration aligns with Codelco’s ongoing diversification strategy, according to company chairman Maximo Pacheco.
Rio Tinto, recognized as the second-largest mining conglomerate in the world, already boasts lithium investments in Argentina and Serbia. This latest foray into the Chilean market highlights the company’s commitment to expanding its footprint in the lithium sector, amidst a global push towards sustainable energy sources.
The partnership between Codelco and Rio Tinto marks a pivotal moment in lithium extraction in Chile, reinforcing the nation’s status in the global market. With Codelco retaining control and Rio Tinto investing heavily, this joint venture could significantly boost Chile’s lithium output. As demand for lithium continues to surge, the successful execution of this project may impact the future of electric vehicle and battery technology, further solidifying Chile’s role in the Lithium Triangle.
Original Source: www.tiogapublishing.com
