Chilean regulator approves Codelco and SQM joint venture
Codelco announced in a Thursday statement that Chile's competition regulator had approved the deal between Codelco and SQM, the state-run copper company, to create a joint venture for the expansion of lithium production on the Atacama Salt Flats.
In a statement, the FNE regulator in China has yet to approve the deal. This approval is expected to be incorporated into the decisions made by the European Union, Brazil and South Korea.
In a press release, Codelco Chairman Maximo Pacheco stated that they were "really satisfied" with the decision. He added that discussions with indigenous groups in the area are also moving forward.
According to the statement, authorization from Chile’s nuclear energy regulator CCHEN was still pending. However, a complete deal is expected in the second half.
The joint venture was a crucial part of President Gabriel Boric’s plan to increase state control over lithium industry and expand its production. However, it has been resisted by legislators.
Tianqi, a Chinese company, is suing for damages
, is a major shareholder in SQM.
The deal has progressed despite this and the decision on Thursday removed a potential obstacle that could have slowed down the joint venture. (Reporting and writing by Fabian Cambero, Editing by Kylie Madry).
(source: Reuters)
