Chile’s Corfo agency preps lithium contracts ahead of SQM-Codelco deal

SANTIAGO (Reuters) -Chilean economic development agency Corfo said on Monday it has submitted to the comptroller’s office the terms of a modified lease agreement with lithium producer SQM through 2030, and of a new 2031-2060 lease for a joint venture between SQM and state copper producer Codelco.

SQM and Codelco are expected to finalize a partnership this year in the Atacama salt flat in northern Chile that will mark the state’s first major foray into lithium production.

Corfo, which leases mining rights in the Atacama salt flat, said in a statement that its board last week approved the final version of the contracts.

They include lease payments tied to lithium prices and contributions. The contributions will be distributed to local governments and Indigenous communities to promote investment and fund development, and the contracts also outline stronger environmental requirements for clean energy and water use.

Corfo will also maintain its preferential pricing program for companies that seek to produce lithium-related products in Chile, it said.

Corfo added that it will lead a “monitoring table” for representatives of Indigenous communities to track the commitments made by SQM and Codelco.

Codelco, in a separate statement, said the new Corfo contracts will ensure operational continuity, environmental standards and respect for communities.

The partnership still requires the approval of Chinese antitrust regulators after other countries signed off, the last condition to finalize the deal.

(Reporting by Fabian Cambero; Editing by Daina Beth Solomon)