Chilean state mining company Enami has shortlisted six companies for the partnership in the Altoandinos lithium project in Chile to continue its proposal for developing the lithium project in the Atacama region. The six companies are China's BYD, China's CNGR, South Korea's LG, France's Eramet, South Korea's POSCO, and Rio Tinto.The shortlisted companies will enter public-private partnership (PPP) negotiations to develop the lithium deposits in Chile's Altoandinos salt flats.
Due to Enami's precarious financial situation, in May 2024, Enami began seeking partners to provide funding or operational support in exchange for ownership stakes in the Altoandinos project. Enami aims to start construction of its first lithium project as early as 2027, aligning with the government's strategy to expand its influence in the global battery metals sector. At that time, the company's CEO Ivan Mlynarz stated that Enami was at the forefront of the government's lithium plan, collaborating with mining giant Codelco, and other potential partner companies had to register by June 7, 2024, to meet the goal of completing the selection by March 2025. The project is located within the Salares Altoandinos in the Atacama region, encompassing three salt flats—Aguilar, La Isla, and Grande, with a total area of nearly 30,000 hectares. Enami will assess the available lithium reserves and the required investment to determine its ownership percentage in the project. Mlynarz stated at the time: "We are now developing the engineering, basically to enable the project to start construction around 2027 or 2028. We have in mind partners who will see this through... partners with financial backing to ensure resource availability and experience in developing such projects." He also revealed that the Treasury's goal is to produce new lithium in Chile by 2030, and it is expected that Altoandinos will produce about 60,000 mt of lithium carbonate equivalent annually. In April 2024, Rio Tinto, Eramet, and LG Energy proposed lithium extraction technology for the early exploration stage of Chilean salt flats.In July 2024, Enami stated that 12 companies had expressed interest in the project and submitted letters of intent.
The Altoandinos project aims to find partners with established expertise and financial capability in the field to support its significant project, and the companies will now begin negotiations with the final round of applicants.
In a press release, Enami stated that during this process, it would provide companies with technical information about the resources in the deposits and knowledge gathered after national exploration activities in the region. Enami intends to establish the PPP by March 2025, with the selected companies acting as operators or financiers.
Additionally, Enami is currently consulting with local communities, linked to special operating contracts required by the Ministry of Mining, to seek the opinions of indigenous people. Basic exploration activities will resume in September 2024, which will enhance the estimation of lithium resources in the deposits.
For queries, please contact William Gu at williamgu@smm.cn
For more information on how to access our research reports, please email service.en@smm.cn