Codelco partners with Rio Tinto to extract lithium from Maricunga salt flat in Chile. Rio Tinto invests $900 million for a 49.99% stake in the venture while Codelco retains control with 50.01%. This move comes amid rising lithium demand for batteries, reflecting a strategic shift for Codelco under President Boric’s plans to enhance lithium output.
In a significant move for the lithium industry, Chile’s Codelco, the state-owned copper powerhouse, has formed a partnership with the British-Australian mining titan Rio Tinto. Announced on Monday, this collaboration aims to extract lithium from the Maricunga salt flat, which ranks as the world’s second-largest lithium deposit. Mining firms are increasingly hunting for lithium due to its essential role in electric car and smartphone battery production.
The so-called Lithium Triangle, comprising Argentina, Bolivia, and Chile, houses an impressive 60 percent of the global lithium reserves, as outlined by the US Geological Survey. Among these, the Maricunga salt flat is noted for its significant lithium brine concentration, second only to the Atacama salt flat bordering Bolivia.
In terms of investment, Rio Tinto’s commitment is substantial, with $900 million allocated for a 49.99 percent ownership stake in the venture, named Salar Maricunga SpA. Codelco, while maintaining a controlling interest with 50.01 percent, continues to lead in the world’s lithium mining sector, placing Chile as the second-largest producer after Australia.
To bolster output, President Gabriel Boric had earlier initiated a strategy in 2023 focused on public-private partnerships aimed at tapping into unexploited lithium deposits across the nation. Codelco’s chairman, Maximo Pacheco, asserted that the new initiative reflects a clear diversification of the company’s portfolio.
Rio Tinto, boasting operations in 35 countries, stands as the globe’s second-largest mining entity following BHP. The company’s existing interests in lithium projects span countries like Argentina and Serbia, underlining its commitment to expanding its lithium footprint in the rapidly evolving market for electric vehicle components.
The partnership between Codelco and Rio Tinto highlights a significant shift in the lithium extraction landscape in Chile, aiming to tap into the Maricunga salt flat. With this $900 million investment, both companies seek to bolster lithium production and diversify their operations. As the demand for lithium surges with the growth of electric vehicles and technology, this collaboration represents a critical step forward in enhancing Chile’s role in the global lithium market.
Original Source: www.tiogapublishing.com
