SQM expects to close Codelco lithium deal by May 31 deadline
SANTIAGO - Chilean mining company SQM, the world's second-largest lithium producer, expects to meet a May 31 deadline to finalise a joint venture with state-run miner Codelco, SQM's CFO, Gerardo Illanes, said on Thursday.
Some analysts had cautioned the deal could be delayed after an earlier deadline was extended two months due to complexities in the negotiation, and flagged a high-profile dispute between SQM and shareholder Tianqi Lithium as a risk.
"There's no particular sticking point, it's just that it is a complicated transaction," Illanes said in a call with analysts to discuss first-quarter results, when asked if there was a final obstacle. He noted that work was still in progress to handle a number of details.
The deal would give Codelco a 50% plus one share stake in a SQM's lithium production in Chile's Salar de Atacama, as the government seeks to boost its role in the industry that provides a key metal for electric vehicle batteries.
When asked if SQM was preparing for potential legal action from China-based Tianqi, which holds about a 22% stake in the company, Illanes said SQM was following the steps outlined by Chile's financial regulator to finalize the deal.
"We're not planning for anything else, as the process should go as the regulator instructed," he said, without directly addressing Tianqi.
Tianqi has called for a shareholders' vote to approve the deal, which SQM says is subject only to a vote by the board of directors.
"Once the contracts are ready, the board will meet, will review the details of the contract, and will take a decision," Illanes said.
Article Enquiry
Email Article
Save Article
Feedback
To advertise email advertising@creamermedia.co.za or click here
Research Reports
Projects
Latest Multimedia
Latest News
Showroom
Established in 1983, the ASTPM is an industry association and representative body of the welded carbon steel tube and pipe manufacturers of South...
VISIT SHOWROOM
ATI systems comprises five divisions: electrical assemblies, drives and controls, feedback sensors, enclosures, and strip guiding.
VISIT SHOWROOM
Announcements
What's On
Subscribe to improve your user experience...
Option 1 (equivalent of R125 a month):
Receive a weekly copy of Creamer Media's Engineering News & Mining Weekly magazine
(print copy for those in South Africa and e-magazine for those outside of South Africa)
Receive daily email newsletters
Access to full search results
Access archive of magazine back copies
Access to Projects in Progress
Access to ONE Research Report of your choice in PDF format
Option 2 (equivalent of R375 a month):
All benefits from Option 1
PLUS
Access to Creamer Media's Research Channel Africa for ALL Research Reports, in PDF format, on various industrial and mining sectors
including Electricity; Water; Energy Transition; Hydrogen; Roads, Rail and Ports; Coal; Gold; Platinum; Battery Metals; etc.
Already a subscriber?
Forgotten your password?
Receive weekly copy of Creamer Media's Engineering News & Mining Weekly magazine (print copy for those in South Africa and e-magazine for those outside of South Africa)
➕
Recieve daily email newsletters
➕
Access to full search results
➕
Access archive of magazine back copies
➕
Access to Projects in Progress
➕
Access to ONE Research Report of your choice in PDF format
RESEARCH CHANNEL AFRICA
R4500 (equivalent of R375 a month)
SUBSCRIBEAll benefits from Option 1
➕
Access to Creamer Media's Research Channel Africa for ALL Research Reports on various industrial and mining sectors, in PDF format, including on:
Electricity
➕
Water
➕
Energy Transition
➕
Hydrogen
➕
Roads, Rail and Ports
➕
Coal
➕
Gold
➕
Platinum
➕
Battery Metals
➕
etc.
Receive all benefits from Option 1 or Option 2 delivered to numerous people at your company
➕
Multiple User names and Passwords for simultaneous log-ins
➕
Intranet integration access to all in your organisation
