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Chile plans to issue tenders for five more lithium projects next year as part of a drive to more than double output of the battery metal within a decade, Mining Minister Daniel Mas told Reuters.
The world’s second-biggest lithium producer wants the private sector to play a bigger role in developing new mines, Mas said in an interview during LME Week, an annual gathering of the global metals industry in London.
“We’re trying to change so that the private sector leads the mining industry to speed things up,” Mas said.
Mas was appointed by President Jose Antonio Kast, who is seeking to revive growth in the world’s largest copper producer through corporate tax cuts and investment incentives.
His predecessor, leftist President Gabriel Boric, unveiled a plan in 2023 to increase state involvement in lithium production and create public-private partnerships to expand the industry. Lithium is a key ingredient in electric vehicle batteries.
Mas said five lithium projects awaiting approval would be fully privately operated.
Once those projects are approved, which he hopes will happen early next year, Chile plans to launch tenders for five more.
Those developments could help lift Chile’s lithium output from about 300,000 metric tons a year to 700,000 tons within five to 10 years, Mas said.
Speeding up permitting
Chile is also seeking to shorten the time needed to secure mining permits, Mas said.
The government is building on reforms introduced under Boric, whose administration presented two major bills aimed at streamlining permitting.
Mas said appeal processing times had fallen by 80% and that the government had approved 22 mining projects worth nearly $3 billion this year.
“Our commitment is that Chile stops being a country where projects drag on indefinitely and goes back to being a country where decisions are made,” he said.
The government has also created a new system under which an economic committee of 12 ministers meets every 15 days to review the progress of mining projects and identify ways to accelerate them, Mas said.
Speaking at a mining conference earlier, lawyer Charles Bond, a specialist in natural resources, noted that Chile was not among the world’s most attractive mining destinations.
He pointed to the Fraser Institute’s investment attractiveness index, where Chile ranked 32nd out of 68 jurisdictions in last year’s report.
“I think the country has really made an effort,” Bond said, adding that it would be interesting to see whether Chile climbs the rankings in this year’s index following the reforms.
(Reporting by Eric Onstad. Additional reporting by Fabian Cambero in Santiago. Editing by Mark Potter)
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