Boric calls for a “dialogue process” to define lithium governance

The president of Chile, Gabriel Boric, called this Friday for a “process of dialogue and participation to gather the visions and knowledge” that contribute to define a governance of the lithium and the salt flats in the South American country.

This after some business unions were critical of the national lithium strategy announced on Thursday by the president and which gives the State a relevant role in the entire production cycle of the mineral.

“I have no doubt that the great tasks of the country -in particular, a new development model- require that we work together in unity and putting political differences aside.”, pointed out the Chilean head of state from the northern region of Antofagasta, the heart of the country’s mining production.

The president addressed the questions that several business sectors raised a few hours after the national lithium strategy was presented through a national chain from La Moneda, specifically the Confederation for Production and Commerce (CPC), the Sociedad de Fomento Fabril (Sofofa ) and the National Mining Society (Sonami), who pointed to the central role that the State will have in the Government’s plan.

The strategy, Boric noted, “It was the product of multisectoral work and that many of you who are present here may have legitimate doubts or concerns about it.”.

“That is why I have decided to come to the north (Antofagasta), because (in order) to carry out this great task with a focus on greater development for the country in the regions, we need to talk with everyone: with the workers, with the employers, with the unions, with unions, with companies, with the scientific community, with indigenous peoples and with local communities”, added the president.

He also added that “As a pillar, we are calling for a process of dialogue and participation to collect visions and knowledge regarding the new governance of lithium and salt flats, and here everyone is important, to the extent that we have the joint will to move forward and not stagnate.”.

Besides, Boric emphasized the need fornot waste” the “great opportunity that lithium presents for the development of the country”.

“We have to do it differently than we have done before. When we talk about development, we are thinking about the well-being of the inhabitants of our country, not just a few; that the wealth in our territory is better distributed in a decentralized way“, he pointed.

“The lithium industry has to be at the service of the people and not the people at the service of an industry. For this it is essential -and this is how we have defined it- that the State is present throughout the lithium production cycle and that is why we are going to send to Parliament, after the participatory process, the bill to create a National Lithium Company and the Corfo Lithium and Salt Flats Committee, also ensuring its sustainability in the medium and long term”, Boric sentenced.

Despite the fact that there are more than 50 salt flats in Chile, currently only one is exploited, the Salar de Atacama, the largest in Chile and the third largest in the world and which concentrates 90% of the lithium reserves in the country.

Today there are only two companies in charge of exploiting Chilean lithium: Sociedad Química y Minera SQM, controlled by the Chinese Tianqi and the son-in-law of former dictator Augusto Pinochet (1973-1990), Julio Ponce Lerou, and the American Albemarle.

According to the Autonomous Fiscal Council (CFA), in 2022 the State received more than US$5 billion for the exploitation of this mineral, equivalent to 1.6% of GDP.

Chile is the world’s second largest producer of lithium, behind Australia, but Argentina could gain positions in the coming years and leave it behind.

In 2022 there were sales of lithium carbonate abroad for US$ 7,763 million, an increase of 777% compared to 2021, according to the Central Bank.

With this performance, lithium carbonate surpassed salmon, iron and cherries in the Chilean export basket.

Source: EFE