SQM - SQM gains on inking MoU with Codelco for development of Salar de Atacama from 2025 to 2060

2023-12-27 17:59:45 ET

SQM ( NYSE: SQM ) rose about 7% after the closing bell on Wednesday as the Chilean miner announced a memorandum of understanding with the National Copper Corporation of Chile (Codelco) for the operation and development of the Salar de Atacama during the period from 2025 to 2060.

With the partnership, the parties aim to produce high-quality lithium products in the Salar de Atacama by way of establishing a new operating company.

The MoU highlights the entry of Codelco at the beginning of 2025 into the ownership of the new company, which would be producing lithium carbonate and lithium hydroxide on the properties that SQM currently leases from the Chilean Production Development Company in the Salar de Atacama.

Additionally, the joint venture would be responsible for the execution of the different projects and the sales of lithium worldwide.

"This partnership will permit, among other positive aspects, an efficient transition between the current SQM lease contracts with Codelco, which expire in 2030, and the lease contracts that Codelco has from 2031 to 2060," SQM added.

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