Chilean court rejects appeal to stop bidding for new lithium contract

A Chilean court on Friday rejected a legal challenge from a group of lawmakers trying to block the government's bid for lithium mining rights that attracted big miners SQM and Albermarle.

Opposition representatives from centre-left PPD filed an appeal this week, but the San Diego Court of Appeal ruled that it was too late because the tender had been announced by a Ministry of Mines decree since mid-October.

Lawmakers argued that the unexpectedly announced lithium auction by the outgoing government endangered "the general interests of the country", according to one of the sponsors of the appeal.

At stake are contracts to explore and produce about 400000 tons of lithium, a coveted metal used in batteries for electric cars and other electronics. Chile's SQM and America's Albermarle are among the five competitors for these contracts.

The process will end in mid-January and has been criticized by opponents and circles close to president-elect Gabriel Borich, who has said he wants to create a state-owned lithium company.

Mining and Energy Minister Juan Carlos Jobet met with Boric advisers this week to try to reach a consensus on the process.

Baldrick will be inaugurated as president in March.