Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Codelco is in early-stage talks with prospective partners for a lithium project in northern Chile as the country with the biggest reserves of the battery metal strives to boost output.
As it wraps up an exploration program this year at the Maricunga salt flat, Codelco has been contacted by several companies, Chairman Maximo Pacheco said in an interview from the state-owned copper giant’s Santiago offices.
“We are having those discussions in a very constructive way,” he said, without giving any detail on the companies showing interest.
Pacheco spoke ahead of Friday’s announcement of the government’s long-awaited lithium development strategy, in which companies will partner with the state in new projects. Until a national lithium company is established though, Codelco will represent the state, Mining Minister Marcela Hernando said Monday. Pacheco declined to comment on that, saying only that Codelco would support the new strategy.
“We have a very robust project portfolio and we have huge business opportunities in copper and in lithium,” he said. “We will take advantage of those.”
Chile is trying to attract private capital to the lithium industry, at the same time as maximizing tax revenue, defending the environment and expanding downstream operations. Output is currently restricted to two companies — SQM and Albemarle Corp. — from a single, though giant, salt flat. The nation is losing market share just as demand for the key ingredient in electric-vehicle batteries accelerates.
(By James Attwood)
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