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China’s Tianqi Lithium said on Friday that several aspects of the deal negotiated by SQM (NYSE: MQ) with the Chilean state copper mine Codelco are not yet clear.
Tianqi owns a stake of about 20% in SQM (SQM), it told shareholders on Thursday which are the talks with Codelco relating to a new partnership on lithium in progress.
SQM (SQM) plans to transfer mining concessions from the lithium-rich Maricunga salt pan to Codelco as part of a new partnership, the company said at the shareholders meeting, which was held at the request of Tianqi Lithium, one of main shareholders.
SQM also plans to transfer all assets and contracts related to the Atacama Salt Flats to the joint venture; the contract with Codelco will allow the continuation of operations from 2031 to 2060.
The two companies worked out a preliminary agreement in December as part of a government plan to increase state control of Chile’s lithium industry, and the companies were expected to announce final terms this month but extended the deadline until May.
SQM (SQM) is moving forward with the expansion of its Atacama brine extraction and processing operations, Bloomberg reported, even as many competitors have cut spending and production to deal with a supply glut that has sent lithium prices last year.