The Chilean state copper company Codelco is preparing an incursion into the lithium business amid ongoing controversy after a private company won the multimillion dollar contract to mine the ore.

Codelco official announcement could be made as soon as with its plan to mine lithium at the Maricunga Salt Flat, in the northern region of Atacama, sources close to the government told the newspaper La Tercera.

Codelco's preparations are emerging two days after the company Sociedad Quimica y Minera de Chile owned by Julio Ponce former son in law of late dictator Augusto Pinochet, won an exclusive contract to mine lithium for 20 years thanks to a bid of more than USD 40 million USD.

The contract was criticized by various social sectors, including mining unions which described it as unconstitutional and expressed dissatisfaction because Codelco did not participate in the process.

According to the newspaper, the corporation may use a visit from representatives of its Japanese shareholder Mitsui on Thursday to make the announcement because as a state company it does not need to submit a tender.

Among other options is the possibility of forming a joint venture with Mitsui and adding an operator possibly FMC a company that is mining the Hombre Muerto Salt Flat in Argentina.

Source - Plenglish.com

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