Mining Ministry notifies the awarding of a public tender to increase lithium production
Date of Publication
1-1-2023 12:00 AM
Security Theme
Strategic Competition
Keywords
Critical Minerals, Contracts, BYD Chile SpA, Servicios y Operaciones Mineras del Norte S.A., Lithium Production, Chilean State, Marketable Metallic Lithium (MML), Bids, Revenue, Competition, Electromobility, Lithium Reserves, Exploration and Production, Environmental Permits, Local Communities, Industry Development Strategy, $61 million, $60 million
Description
The Chilean Mining Ministry has recently awarded contracts to BYD Chile SpA and Servicios y Operaciones Mineras del Norte S.A. These companies, despite not currently producing lithium in Chile, presented the highest bids in a public tender aimed at boosting lithium production in the country. Each company has been granted a quota of 80,000 tons of marketable metallic lithium (MML), with BYD Chile SpA bidding US$61 million and Servicios y Operaciones Mineras del Norte S.A. bidding US$60 million. These offers were significantly higher than others received, aligning with the state's objective of increasing market competition and revenue per quota. The awarded quotas, totaling 160,000 tons of MML, account for 1.8% of Chile's known lithium reserves. Prior to commencing exploration and production, the companies must secure all necessary permits and engage in dialogue with local communities to ensure environmentally responsible and legally compliant project development. Furthermore, the government intends to collaborate with the selected companies to allocate a portion of their payments towards supporting local communities and research and development initiatives. Additionally, there is a commitment to establish a National Lithium Board to formulate a state-centered, long-term industry development strategy. This move is pivotal in revitalizing Chile's position in the global lithium market.
Mining Ministry notifies the awarding of a public tender to increase lithium production
The Chilean Mining Ministry has recently awarded contracts to BYD Chile SpA and Servicios y Operaciones Mineras del Norte S.A. These companies, despite not currently producing lithium in Chile, presented the highest bids in a public tender aimed at boosting lithium production in the country. Each company has been granted a quota of 80,000 tons of marketable metallic lithium (MML), with BYD Chile SpA bidding US$61 million and Servicios y Operaciones Mineras del Norte S.A. bidding US$60 million. These offers were significantly higher than others received, aligning with the state's objective of increasing market competition and revenue per quota. The awarded quotas, totaling 160,000 tons of MML, account for 1.8% of Chile's known lithium reserves. Prior to commencing exploration and production, the companies must secure all necessary permits and engage in dialogue with local communities to ensure environmentally responsible and legally compliant project development. Furthermore, the government intends to collaborate with the selected companies to allocate a portion of their payments towards supporting local communities and research and development initiatives. Additionally, there is a commitment to establish a National Lithium Board to formulate a state-centered, long-term industry development strategy. This move is pivotal in revitalizing Chile's position in the global lithium market.
