SQM-Codelco in crosshairs of Chile presidential frontrunner

Chile’s leading presidential candidate is embarking on a review of a landmark deal signed last year between lithium supplier SQM and state-owned Codelco.

Evelyn Matthei has asked her coalition lawmakers to request information “in order to review the suitability of the pact for the country and the future development of that industry in Chile,” the center-right presidential candidate posted Tuesday on her X account.

Matthei’s pledge is the latest twist in drama surrounding a deal that would see SQM relinquish a majority stake in its prized Atacama salt flat mine to Codelco in exchange for three more decades of operations. Tianqi Lithium Corp., a key SQM shareholder, has said the tie-up lacks transparency and should go to a shareholder vote.

To be sure, Codelco expects to have the approval process wrapped up next quarter, which would allow the two companies to begin joint lithium operations before the next government takes office in 2026.

The tie-up is part of current President Gabriel Boric’s policy of requiring state-owned companies to partner with private-sector firms in lithium areas deemed to be strategically important.

The government accused Matthei of “engaging in discussions that divert attention from important matters, that ignore the progress we have made as a country, and that, in this case, call into question the world’s leading mining company,” spokesperson Aisen Etcheverry told the 24 Horas news network later on Tuesday.

Matthei garnered 20% of voter support, up from 18% the week prior, a Cadem public opinion survey published late Sunday showed. That level of backing puts her ahead of all other contenders. Chile’s first-round presidential vote will take place on Nov. 16 and a run-off, if needed, would be on Dec. 14.

(By James Attwood)