The Chilean Nuclear Energy Commission (CChEN) has authorised Minera Tarar, a subsidiary of Codelco, to commence lithium extraction in the Salar de Atacama from 1 January 2031.

The decision is pivotal for the operational continuity of the anticipated joint venture between Codelco and SQM.

Minera Tarar has been granted an initial maximum extraction of 2.5 million tonnes (mt) of lithium metal equivalent (LME) over 30 years, potentially increasing to 3.01mt of LME.

This is contingent upon the submission of an updated resource evaluation report and obtaining the necessary Environmental Qualification Resolution.

The approval from CChEN ensures that the future partnership can operate without interruptions in lithium production and commercialisation once the current SQM Salar contract ends in 2030.

To facilitate operational viability, CChEN has also sanctioned the advancement of part of the extraction quota from 1 January 2029, to mitigate production lags due to the natural delay between brine extraction and lithium marketability.

Codelco chairman of the board Máximo Pacheco stated: “The approval of this request by the CChEN is excellent news for Chile. It represents a key step forward in ensuring the operational continuity of the new public-private partnership we are promoting with SQM.”

The development complements other recent regulatory approvals in Chile and internationally, furthering the fulfilment of the preconditions for the Codelco-SQM partnership agreement.

In a related development, Rio Tinto has entered binding agreements with Codelco to form a joint venture for the Salar de Maricunga lithium project in Chile, with a planned investment of up to $900m.

Rio Tinto will acquire a 49.99% stake in Salar de Maricunga, the entity holding Codelco's licences and mining concessions, by financing studies and development costs.