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Chilean state miner Codelco has made progress in negotiations with local communities over lithium mining and will continue to work to win their support, CEO Ruben Alvarado said on Tuesday, according to Reuters, a day after indigenous groups in the salt flat of Atacama which produces lithium have suspended talks.
Codelco has been talking to indigenous groups about the details of a new state-mandated joint venture in the Atacama salt flat with Chile’s SQM (NYSE: MQ), but the four largest indigenous groups in the area said they would withdraw from the talks due to dissatisfaction with Codelco and SQM.
Asked about the move, Alvarado said at the CRU World Copper Conference in Santiago that he recognized the complexity of the negotiations, which he said touch on historical issues.
Codelco president Maximo Pacheco told Reuters he had visited the Atacama salt flats in recent weeks to speak directly with local communities, who he said were concerned about the area’s water supply.
Chilean President Gabriel Boric tasked Codelco nearly a year ago with leading efforts to increase state control over strategic lithium projects amid growing demand for the metal needed for batteries used in electric vehicles.
ETF: (LIT)