Chile Approves Codelco-SQM PPP Deal for Lithium Extraction with Mitigation Measures

Chile Approves Codelco-SQM Public-Private Partnership Agreement

The Chilean National Economic Prosecutor's Office (FNE) approved the public-private partnership agreement between the Chilean National Copper Corporation (Codelco) and the Chilean Mining and Chemical Company (SQM) on the 24th local time, with accompanying mitigation measures. The agreement involves the establishment of a joint venture to extract lithium hydroxide and lithium carbonate from the Atacama Salt Lake, with management divided into two phases: controlled by SQM from 2025 to 2030, and by Codelco from 2031 to 2060. The FNE analyzed that the transaction might reduce competition, but the mitigation measures proposed by Codelco and SQM were deemed effective, including restricting the flow of sensitive information and regular reporting. Additionally, the governance structure of the joint venture must comply with Chile's Decree No. 211 of 1973, which prohibits relevant personnel from holding concurrent positions or sharing sensitive information between competing enterprises.