Brazil’s Gerdau buys out Sumitomo Corp and JSW in Gerdau Summit
The transaction is expected to close in early 2025.
Chile’s lower house of Congress approved a resolution asking President Gabriel Boric to annul an agreement between state copper company Codelco and Chilean miner SQM that would give Codelco a prominent role in the lithium industry.
The motion, passed late on Tuesday, was led by the Party for Democracy (PPD), part of the ruling coalition, and approved with 41 votes in favor, 15 against and 10 abstentions.
The partnership between Codelco and SQM is a major component of Boric’s plan to boost the state role in Chile’s production of lithium, a metal used in electric vehicle batteries.
The government-mandated deal would extend SQM’s contract to extract lithium in the prized Atacama salt flat through 2060, while giving Codelco a more than 50% stake in the project.
The tie-up sparked criticism from some lawmakers and industry experts, who said the SQM contract in the Salar de Atacama, set to expire in 2030, should have been opened to a bidding process.
The resolution signed by lawmakers calls for canceling the deal so that the process can “be done through a national and international public tender and not in a direct deal.”
The Mining Ministry and Codelco did not immediately respond to requests for comment. Boric has been supportive of the partnership, which the companies aim to finalize early next year.
Codelco chairman Maximo Pacheco has repeatedly defended the joint venture, saying the direct deal with SQM ensures a consistent flow of funds to the Chilean state, with the miner turning over 70% of its operating margin through 2030, and 85% through 2060.
“There are clear advantages that lead to the conclusion that the direct negotiation met its goals,” he told Senate lawmakers in a hearing last month.
Chile is the world’s second-biggest producer of lithium, with output from SQM and Albemarle.
(By Fabian Cambero and Daina Beth Solomon; Editing by Bill Berkrot)
Comments