By Daina Beth Solomon and Fabian Cambero
SANTIAGO (Reuters) – The Chilean government has selected six priority areas for new lithium mining projects led by private companies, the South American country’s mining minister said on Thursday.
In October, the government will begin consulting indigenous communities near those areas, while proposals from private companies are due by Dec. 31, Mines Minister Aurora Williams added.
Chile is the world’s second-largest producer of the key battery metal lithium, with production currently coming from just two companies in the Atacama salt flats.
The government is working to boost manufacturing, both through efforts led by state giant Codelco and by encouraging private investment.
Chilean authorities have already received around 20 declarations of interest for the six priority areas, which include five salt flats and one lagoon, and which were identified as having high potential for lithium extraction.
“We believe there will be effective competition as these are the areas of greatest importance,” Williams said at a news conference.
To receive government approval for lithium mining, private companies must have experience in the lithium value chain, have sufficient financial resources and own at least 80% of the mining concessions in the proposed project area.
Finance Minister Mario Marcel said the announcement of the six priority areas keeps Chile on track with its goal of developing three or four new lithium projects during President Gabriel Boric’s administration and increasing lithium production by 70% by 2030.
“We are taking all necessary steps to achieve these goals,” Marcel said.
