Sep. 27, 2012
Sociedad Química y Minera de Chile S.A. (SQM) has been qualified as the winner of the National and International Public Tender for the subscription of a Special Operating Contract for the Exploration, Exploitation, and Processing of Lithium Deposits (CEOL) in Chile.
SQM offered the sum of $19,301 million Chilean pesos (equivalent to approximately $40.9 million USA Dollars) for the rights to exploit a total quantity of 100,000 tons of Li (Approximately 532,000 tons of Lithium Carbonate Equivalent) for a maximum period of 20 years from the date of executing the contract.
These rights are subject to conditions that are specified in the tender bases which indicate, among other aspects, that they cannot be used in those zones covered by mining concessions constituted in compliance with the Mining Code of 1932, among which are the mining claims that SQM currently leases from CORFO in the Salar de Atacama.
SQM expects to announce the exploitation project(s) associated with the CEOL during the next 12 months, a period in which the studies and assessments of the various productive alternatives will be continued.
SQM is one of the world’s main participants in the lithium industry, with market presence for over 15 years, investing in the development of this sector with production, research, and technology. The Company has the experience, the know-how, the technology, the financial resources, and, above all, the persons qualified to successfully continue the long term development of this industry.
The lithium market is a competitive worldwide market with currently approximately 20 producers and more than 100 projects under study. The dynamic of the market is related to the assurance of the supply, production quality, productive efficiency, client knowledge, and capacity of adaptation to their requirements. SQM has the necessary attributes to maintain leadership in the development of this industry over the long term.