Business News Americas reported that the Chilean branch of Li3 Energy formally asked the committee in charge of the failed lithium tender to reconsider its decision to annul the process.
Mr Luis Saenz CEO of Li3 Energy said that the request was presented to the mining ministry and the goal is to have the committee award the tender to the second best offer presented by the Posco Consortium of which Li3 is a member. The consortium's bid was for CLP 8.26 billion.
Mr Cristián Quinzio the company's lawyer said that "Li3 wants to revert the decision to invalidate the tender. The company is not preparing any other legal action as it trusts that the administration will make the right decision.”
Failed Tender;
The government awarded local firm SQM (NYSE: SQM) the first lithium rights contract (CEOL) on September 24th 2012.
SQM's winning bid offered to pay CLP 19.3 billion for the rights to explore and produce lithium. However following the announcement, Li3 claimed SQM should not have participated in the tender as it is involved in several lawsuits with the Chilean state. One of the preconditions to bid was a sworn statement declaring that participants did not have any pending lawsuits with the state.
The ensuing scandal resulted in the resignation of deputy mining minister Mr Pablo Wagner who led the committee in charge of the process.
According to Chilean mining, power and administrative lawyer Mr Winston Alburquenque the framework to award lithium concessions was badly designed from the start and should have had more solid legal support. The legal solution would have been to have a law that regulates lithium not a decree.
Further Legal Action;
Meanwhile, the third bidder in the tender, NX Uno de Peine, filed legal action in a local court against SQM accusing the latter of perjury because of its outstanding legal processes which it claims total 49. The accusation will be investigated.
Mr Francisco Javier Errázuriz president of NX UNO de Peine has publicly expressed his support for Posco Consortium's initiative. The CEOLs give the right to explore and produce the metal, with a maximum total production of 100,000 tonnes of lithium over 20 years. Although 66 entities initially purchased the bidding rules only three parties presented offers in the end.
The government decided to award the CEOLs earlier this year, in light of projected expectations for future lithium demand and as part of the country's desire to boost lithium output and keep Chile among the top global producers.
Source - Business News Americas
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