SQM - Codelco chairman sees 'urgency' to reach lithium deal with SQM this year

2023-05-25 12:53:29 ET

Chilean miner Codelco has a " sense of urgency" to reach an agreement with lithium miner SQM ( NYSE: SQM ) this year for a new state-controlled public-private partnership, Chairman Maximo Pacheco said Wednesday.

"There's a sense of urgency to reach a good agreement that allows Chile to become a leader in lithium production," Pacheco said after meeting with the state agency that issues lithium contracts, adding he expects to provide news in the "coming days" about the start of its conversations with SQM ( SQM ).

Codelco, the world's largest copper producer, has been instructed to carry out negotiations SQM ( SQM ) and U.S.-based rival Albemarle, as well as any new companies that plan to mine lithium in the country.

Only SQM ( SQM ) and Albemarle currently mine lithium in Chile, and the government has said it hopes to reach agreements with both by the end of President Gabriel Boric's administration in 2026.

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