SQM - SQM wins approval from Chilean regulator on environmental plan

Chile's environmental regulator approved a compliance plan for lithium producer SQM ( NYSE: SQM ) on Tuesday, Reuters reports, a step forward for the company following a multiyear sanctioning process for environmental infractions.

The regulator said SQM's ( SQM ) revision of a previous plan provides for the gradual reduction of the company's water and brine extraction in Chile's northern Atacama salt flats.

The plan establishes a staggered reduction in the maximum brine extraction limit until it reaches 822 liters per second in 2027, and allows for a 50% decrease in the total usage of industrial water.

Reuters said the newly approved plan ultimately will cost the company $52M in investments and measures taken to address six environmental infractions detected by the regulator.

Chile votes September 4 on a new constitution, which has been losing support this summer; a rejection of the new text could dramatically reduce political risk for SQM, Sean Daly writes in a bullish analysis newly posted on Seeking Alpha .

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