Codelco has chosen Rio Tinto as its partner for a lithium project in the Maricunga Salt Flats, following unanimous board approval. The agreement outlines the creation of a joint venture to develop this project, with Rio Tinto contributing up to $900 million.
"This process, which has been extraordinarily competitive, demonstrates the strategic value of lithium as a critical mineral, Codelco's prestige as a partner, and the attractiveness of our country as an investment location," stated Máximo Pacheco, Chairman of the Board of Codelco.
The selection process involved advice from Rothschild & Co., with legal guidance provided by Carey y Cía. in Chile and Sullivan & Cromwell LLP in the USA. Four companies submitted binding offers. Criteria for selecting Rio Tinto included financial strength and experience in lithium brine projects.
Rio Tinto's Chief Executive Officer Jakob Stausholm expressed honor at being selected: "We are honored to be chosen as a partner with Codelco to develop a world-class project using Direct Lithium Extraction technology at the Salar de Maricunga."
Under this partnership, Rio Tinto will hold a 49.99% stake in Salar de Maricunga SpA while Codelco retains 50.01%. This aligns with Chile's National Lithium Strategy and CEOL conditions set by the Ministry of Mining. The roadmap for development will focus on new technologies.
"This project continues our lithium diversification strategy," Pacheco added, emphasizing the importance of collaboration with Rio Tinto for Chile's energy transition.
Financial terms include an initial $350 million upon closing and further investments contingent on milestones like final investment decisions and production targets by 2030.
The Maricunga Salt Flat ranks second globally in lithium concentration after Atacama. Previous explorations have laid groundwork through engineering efforts and environmental permits already secured.
Codelco began exploring between 2022-2023 to build hydrogeological models and estimate resources. In 2024, it acquired Lithium Power International (LPI), owner of Minera Salar Blanco SA.
Pacheco concluded that they are "in an unbeatable position to develop a new lithium project" adhering to environmental standards while engaging communities throughout development phases.
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