Codelco Rio Tinto Partnership Targets Faster Mining Development in Chile

Codelco Rio Tinto Partnership

Codelco Rio Tinto partnership plans could accelerate major mining development in Chile as the state-owned copper and lithium group seeks deeper cooperation with global miners. The preliminary agreement will focus on identifying joint investment opportunities in large-scale mining projects across the country.

Codelco and Rio Tinto will create an executive committee made up of senior officials from both companies. The committee will identify prospective pilot projects, assess major mining opportunities, and oversee implementation where cooperation advances.

The Codelco Rio Tinto partnership reflects a broader strategic shift inside Chile’s mining sector. Codelco wants to accelerate timelines, reduce costs, and improve ESG compliance by sharing technical knowledge with established international mining companies.

Chile Turns to Partnerships to Unlock Copper and Lithium Growth

Chile remains one of the world’s most important copper producers, but project development has become more difficult. Lower ore grades, permitting complexity, water constraints, community expectations, and capital intensity are increasing the pressure on producers.

Codelco’s partnership strategy aims to address those constraints. By working with companies such as Rio Tinto, the Chilean state miner can access technical expertise, operational experience, project discipline, and global capital networks. This could help move exploration and development projects faster.

The agreement also builds on Codelco’s recent cooperation with other major miners. The company partnered with BHP last year to enhance copper exploration in the Antofagasta region. This suggests Codelco may pursue more private-sector alliances as Chile works to protect its long-term copper output.

Rio Tinto Ties Strengthen Chile’s Critical Minerals Platform

Rio Tinto and Codelco have already been strengthening their relationship through work on the Maricunga lithium project and the Nuevo Cobre region. The new agreement broadens that cooperation and positions both companies to explore additional copper and lithium opportunities.

This matters because Chile is central to both traditional mining and the energy transition supply chain. Copper remains essential for power grids, electrification, EVs, renewables, and industrial infrastructure. Lithium remains strategically important for batteries and energy storage.

The Codelco Rio Tinto partnership therefore carries value beyond individual projects. It signals that Chile’s mining future may depend increasingly on structured cooperation between state-owned champions and global mining companies with advanced technical and ESG capabilities.

The Metalnomist Commentary

Codelco’s partnership model shows that Chile understands the limits of going alone in a more complex mining environment. The next competitive advantage will come from faster permitting, stronger technical execution, and alliances that can turn resource potential into reliable supply.

Chile Projects $83.2 Billion in Mining Investments Through 2033

Chile mining

Chile is poised to solidify its position as a global mining powerhouse with projected investments of $83.2 billion spanning 2024-2033.

Massive Investments in Mining Projects

The Chilean Copper Commission (Cochilco) unveiled its latest study highlighting a significant increase in mining investments for the coming decade. The forecast includes 51 mining projects, up from 49 in the previous study for 2023-2032, which projected $65.7 billion in investments. This growth signals Chile's commitment to bolstering its mining sector and enhancing its global competitiveness.

Key players in Chile's mining expansion include major domestic entities like El Abra, Antofagasta, and state-run copper miner Codelco, which collectively account for 64.5% of the total investment. International stakeholders are also playing a vital role:

• Canadian companies such as Teck, Capstone Copper, Los Andes Copper, and Kinross will represent approximately 10% of investments.
• Japanese corporations, including Sumitomo Metals and Mitsubishi Corp, will contribute 5.7%.
• Australian firms, spearheaded by BHP Billiton, will make up 5.2%.

Copper Production and Diversification

The influx of capital is projected to increase Chile’s copper production capacity by 2.23 million metric tonnes annually, adding to the 5 million tonnes produced in 2023, according to the US Geological Survey (USGS). This aligns with Chile’s status as the world’s largest copper producer.

Additionally, $4.7 billion of the investments will be allocated to 15 projects focusing on "metals other than copper," including lithium and gold. Chile already ranks as the world's second-largest producer of lithium, a critical material for batteries and renewable energy storage.

Driving Forces Behind the Investment Surge

This investment boom highlights Chile’s strategic approach to capitalizing on the global demand for essential minerals. Increased copper production will cater to infrastructure and green energy projects worldwide, while lithium investments target the surging electric vehicle and renewable energy sectors.

Cochilco’s report emphasizes the country’s appeal to global mining giants and underscores Chile’s robust regulatory framework and resource-rich landscape as key factors driving foreign investment.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Argentina Lithium Growth Could Challenge Chile’s Regional Lead

Argentina Lithium

Argentina lithium growth could reshape Latin America’s lithium map over the next decade as new projects advance under more investor-friendly rules. Argentina is expected to match Chile’s lithium output by 2035, with some industry participants arguing it could overtake Chile even earlier.

Argentina lithium growth is being supported by faster permitting, large brine resources and stronger investment incentives. By contrast, Chile’s lithium expansion remains constrained by restrictive legislation, lengthy approval processes and uncertainty around new project development.

Argentina lithium growth is strategically important because lithium remains central to electric vehicles, energy storage and battery supply chains. Global buyers want large-scale, politically stable and western hemisphere supply outside more exposed jurisdictions.

Chile remains the region’s largest producer today. However, its future output growth depends heavily on existing producers and slow-moving new projects, while Argentina has a deeper pipeline of advanced developments.

Chile’s Lithium Policy Slows New Supply

Chile has long been Latin America’s dominant lithium producer, but its regulatory system is limiting new investment. Lithium remains non-concessionable and is still treated under legislation linked to nuclear materials.

Companies seeking to extract lithium in Chile must apply for special mining contracts. These contracts are granted through public bidding processes that can be lengthy, bureaucratic and uncertain.

This creates a major exploration problem. Companies may be reluctant to explore land if they cannot be confident of later securing extraction rights.

Chile’s national lithium strategy also requires all new projects to use direct lithium extraction. DLE is viewed as more environmentally friendly than traditional evaporation ponds, but it creates technical and cost challenges.

Each DLE process must be designed around the specific chemistry of each brine resource. That means technology used at one salar cannot simply be copied at another.

This raises development costs and lengthens project timelines. Industry participants estimate that DLE projects may require investment of up to $44,000 per tonne of lithium carbonate equivalent, compared with about $26,000/t for evaporation projects.

Chile’s new supply pipeline is therefore moving slowly. The first major new project, Rio Tinto’s Maricunga, is expected only by the end of 2030, with another new project expected in 2032.

Until then, Chile may rely mainly on capacity increases from existing producers. That could limit its ability to respond to rising lithium demand if Argentina’s project pipeline accelerates.

Argentina’s Rigi Regime Attracts Lithium Capital

Argentina is moving in the opposite direction. Its government has streamlined licensing and introduced the Rigi incentive regime for large investments.

Rigi provides tax exemptions, import-export benefits and legal protections for approved projects. It also allows companies to settle certain disputes in courts outside Argentina, improving investor confidence.

Ten lithium projects have already applied to Rigi, with three approved. The programme has become a major signal to international investors seeking policy stability and faster project execution.

Argentina now has more than 60 active lithium projects and seven producing assets, the most in Latin America. Two new developments are expected to come on line this year, lifting projected output to 159,000t of lithium carbonate equivalent.

That remains below Chile’s 305,000t in 2024. However, Argentina has more than 20 projects in advanced stages, including eight close to production.

Argentina’s mining ministry expects output to reach 583,000 t/yr of lithium carbonate equivalent by 2035. That would put the country in position to match or overtake Chile if Chile’s permitting regime does not change.

The investment logic is clear. Argentina offers large brine resources, a more open policy framework and exposure to western hemisphere supply chains. That combination is increasingly attractive to battery makers, automakers and mining companies.

Chile still has enormous lithium potential. But potential alone does not create supply. Without faster approvals and clearer rules, Chile risks losing regional leadership to Argentina.

For the lithium market, this shift matters. Argentina’s rise could increase competition, diversify supply and give buyers more options in South America. It could also make Latin America’s lithium growth less dependent on Chile’s policy choices.

The Metalnomist Commentary

Argentina’s lithium advantage is not only geological; it is regulatory. Chile still has world-class resources, but Argentina is turning policy speed into supply-chain momentum.

Chile Copper Mining Power Demand to Surge by 2034

Chile Copper

Rising Energy Needs Driven by Processing Shifts

Chile’s copper mining sector will face a sharp rise in power demand over the next decade. According to Cochilco, the state copper commission, the industry will require 32.5TWh of electricity in 2034, up 21% from 26.9TWh in 2024. In contrast, copper production will only expand by 5.6% to reach 5.7mn tonnes in the same period. The mismatch highlights the growing energy intensity of mining operations as ore grades decline.

A higher proportion of copper concentrate production and the increased use of desalinated seawater will drive demand. Cochilco estimates copper concentration will consume 18.7TWh in 2034, or 58% of the sector’s total power. Meanwhile, desalination and pumping water to arid northern mines will account for 5.4TWh, representing 17% of consumption.

Transition to Renewables Amid Rising Costs

Chile’s copper industry has already shifted much of its energy base toward renewables. By 2024, renewables represented 74% of the sector’s electricity use, with contracts steadily renegotiated away from fossil fuels. Cochilco forecasts this share will rise to 78% by 2026. Despite this progress, the overall growth in electricity demand underscores potential cost pressures and supply security challenges for producers.

Copper mining already accounts for one-third of Chile’s total power consumption, and the anticipated rise may stress the country’s grid capacity. Therefore, balancing sustainable energy supply with rising industrial needs will be central to maintaining Chile’s global copper dominance.

The Metalnomist Commentary

Chile’s copper sector is entering an era where energy demand grows faster than metal output. The transition to cleaner power sources is vital, but rising electricity costs and desalination needs will weigh on margins. Global buyers of copper should expect long-term pricing influenced not only by supply-demand balances but also by the escalating energy footprint of mining operations.

Paipote Copper Smelter Delay Pushes Chile’s Processing Expansion to 2031

Enami copper

Paipote copper smelter development in northern Chile is facing a delay of more than two years, pushing the country’s major state-backed smelting expansion further into the next decade. Chile’s national mining company Enami now expects construction of the $1.7bn project to begin in October and finish in February 2031.

The revised schedule replaces the earlier plan to start construction in February and complete the project by November 2028. The new dates were included in documents submitted to Chile’s environmental evaluation service, Sea.

Paipote copper smelter modernization is strategically important because Chile remains one of the world’s largest copper producers but has limited domestic smelting and refining capacity compared with its concentrate output. The delay extends the period in which more Chilean copper concentrate will continue to depend on overseas processing.

The project is designed to more than double smelting capacity at the Paipote metallurgical complex to 850,000 t/yr of copper concentrates. It will also include an electrolytic refinery capable of producing 240,000 t/yr of copper cathodes.

Engineering Changes Add Cost and Push Back Construction

The delay follows completion of detailed engineering studies for the smelter. Enami said the proposed changes to the original project, which was approved in October 2025, will cost $65mn.

The changes include demolition of existing infrastructure at the metallurgical complex. Some structures must be removed because of age, while others interfere with the new construction plan.

This is a common risk in brownfield metallurgical projects. Existing plants often provide strategic location and infrastructure advantages, but they can also create cost, demolition and layout challenges when new technology is added.

Enami’s filing seeks confirmation from Sea that the proposed changes do not need to be submitted to Chile’s environmental impact evaluation system. The outcome will matter for timing because any additional environmental review could further extend the project schedule.

The Paipote copper smelter delay also reflects the complexity of modern smelting projects. New plants must meet tighter environmental standards, handle higher concentrate volumes and integrate refining capacity while controlling emissions and operating costs.

For Enami, the project is more than a capacity expansion. The company suspended the existing smelter in 2024 to stem financial losses and improve environmental performance. The modernization is therefore intended to rebuild processing capability on a more sustainable and competitive basis.

Chile’s Copper Value Chain Remains Exposed to Processing Bottlenecks

The delay has wider implications for Chile’s copper value chain. Chile produces large volumes of copper concentrate, but domestic processing capacity has not expanded in line with mine output.

A larger Paipote complex would strengthen local copper concentrate processing and increase domestic cathode production. It would also support small- and medium-sized copper producers, which rely on Enami to process, smelt and refine their material.

That role is important for Chile’s mining structure. Major copper producers often have access to export markets and long-term concentrate buyers. Smaller producers depend more heavily on national processing infrastructure to convert output into marketable products.

The project’s planned 850,000 t/yr concentrate capacity would give Enami a much stronger position in Chilean smelting. The 240,000 t/yr cathode refinery would also help capture more value inside the country rather than exporting concentrate for overseas treatment.

However, the new 2031 completion date means these benefits will arrive later than planned. In the meantime, Chile remains more exposed to global treatment charges, overseas smelter availability and concentrate export logistics.

The delay also comes as copper demand is increasingly tied to grids, electrification, renewable energy, electric vehicles and industrial investment. Chile’s ability to capture more value from copper will depend not only on mine output, but also on smelting, refining and downstream processing capacity.

For Enami, execution will be critical. The company must manage engineering changes, environmental requirements, demolition, construction and financing while restoring confidence in Paipote’s long-term role.

For Chile, the project remains strategically necessary despite the delay. A modern Paipote copper smelter could improve domestic processing resilience and support a more integrated national copper industry.

The Metalnomist Commentary

The Paipote delay shows that copper resource leadership does not automatically translate into processing strength. Chile needs modern smelting and refining capacity to capture more value from its copper base, but brownfield execution risk remains a serious bottleneck.

Chile lithium mining license moves forward under private–indigenous JV model

Chile lithium mining

Chile lithium mining license dynamics are shifting as a private–indigenous joint venture moves first in the new Ollagüe process. The Chile lithium mining license application was filed by Kuska Minerals, a JV between Canada’s Wealth Minerals and the Quechua Indigenous Community of Ollagüe. The Chile lithium mining license bid positions Kuska as an early mover in a basin that the government already classed as high potential in 2024. By partnering with the CIQO, Wealth aligns directly with Chile’s requirement for agreements with affected native communities. This structure also helps the company streamline its own consultation process while offering the community a 5pc equity stake in future value.

Indigenous partnership reshapes Ollagüe lithium approvals

Chile now places indigenous consultation at the centre of lithium approvals, and the Ollagüe salt flat shows how this works in practice. Authorities recently completed native consultations that remapped the exploitable area to protect culturally sensitive zones and populated areas. As a result, the mining ministry opened a fresh application round focused on the remaining brine resources. Kuska is, so far, the only bidder to publicly submit an official application for this high-altitude basin. The JV is now verifying that it meets every technical and legal criterion and has committed to comply fully before the undisclosed deadline. This early alignment with both state and community expectations should reduce project risk if the license advances to the next stage.

Faster licensing supports Chile’s lithium expansion strategy

Chile is using a streamlined process in Ollagüe to accelerate lithium supply while preserving regulatory control. Officials expect the new licensing window to move relatively quickly, signalling to investors that administrative reforms are starting to bite. At the same time, the country has already approved seven other lithium-related permits this year, including projects linked to Eramet, a JV with Quiborax and Codelco, and two Rio Tinto applications. These approvals affirm Chile’s intent to turn selected salars into bankable projects, rather than leaving resources stranded amid policy debate. For downstream battery and EV supply chains, the Ollagüe basin could become another node in a diversified, ESG-sensitive lithium portfolio if Kuska’s bid succeeds.

The Metalnomist Commentary

Kuska’s structure shows how future lithium developers in Chile may need to blend foreign capital, state oversight and genuine indigenous participation. If this model delivers both social licence and predictable approvals, it could become a template for other high-potential salars. Global buyers should watch Ollagüe closely, as community-anchored licensing could shape both cost structures and long-term offtake security.

54% of the World's Copper Mines Face 'Drought Shock'

Anglo American Copper Mining

More than half of the world’s copper mines are exposed to 'drought risk'. Other major metal raw materials such as iron ore, lithium, and cobalt are also facing potential supply disruptions due to abnormal weather conditions.

Metalnomist stated in a report published on the 24th, “Climate anomalies caused by global warming will adversely affect the supply and demand of international raw materials.” The center cited data from the global consulting firm PricewaterhouseCoopers (PwC), predicting that by 2050, 54% of the world's copper mines and 74% of lithium and cobalt mines will experience reduced production due to drought. Water is essential for crushing mineral ores, separating impurities, and cleaning equipment. McKinsey highlighted that “copper, gold, iron ore, and zinc are particularly vulnerable to drought, as 30-50% of these mines are located in areas with insufficient water resources.”

Chile, which produced over 30% of the world's copper in 2020, is already suffering from severe drought. Chilean state-owned mining company Codelco produced only 1,325,000 tons of copper last year, the lowest in 25 years, due to water shortages and other impacts.

15 Years of Water Shortage in the World’s Largest Copper Reserve: "If Mining Halts, Prices Could Quadruple"

Metalnomist warned on the 24th, “Mining items heavily dependent on production from specific countries are at risk of global supply disruptions due to abnormal weather conditions.”

According to Metalnomist, 47% of the world's copper reserves are concentrated in three countries : Chile, Peru, and the Congo. 74% of iron ore is concentrated in China, Australia, and Brazil, while 80.8% of bauxite is concentrated in Guinea, China, and Brazil. Copper demand has recently surged due to the AI boom, raising concerns that any supply disruption could significantly impact the industry. Global infrastructure asset manager Macquarie Group predicts that the annual copper demand could increase by 2 million tons by 2030 due to the surge in AI data centers. Copper is crucial for the construction of both data centers and power grids.

Northern Antofagasta, Chile's largest copper and lithium deposit, is a prime example of a region unable to increase production due to water shortages. Reuters recently reported that local mining company Antofagasta PLC has been struggling to secure water supply as reservoirs have dried up due to a 15-year-long drought. In the first quarter of this year, Antofagasta PLC’s copper production decreased by 11% compared to the same period last year.

Limited water resources are also causing conflicts with local communities. Antofagasta PLC and Australian mining company BHP were sued by Chile’s National Defense Commission (CDE) in 2022 for environmental pollution. The CDE claimed that mining companies extracted water volumes exceeding regulations, causing severe damage to the local ecosystem and indigenous communities.

Seawater desalination plants are being considered as a solution to these issues. However, the high investment costs and long construction periods limit their ability to solve water problems immediately.

Due to structural constraints on copper supply, it is predicted that copper prices could skyrocket in the coming years. Goldman Sachs projected that the average copper price next year would be $15,000 per ton. Pierre Andurand, founder of hedge fund Andurand Capital, analyzed that the global copper supply shortage could drive prices up to $40,000 per ton by 2028. Copper traded at a record high of $10,857 per ton on the London Metal Exchange (LME) on the 21st of last month, before falling to $9,563 on the 21st of this month.

The increasing demand for electricity for cooling due to heatwaves is also expected to raise the demand for fossil fuels such as coal and natural gas. Metalnomist noted, “Europe is in a situation where it is inevitable to expand thermal power generation to meet the increasing electricity demand in summer,” and added, “In Asian countries such as Thailand, India, and Bangladesh, the demand for natural gas for power generation has increased.”

Codelco Lithium Ascotan Move Expands Chile’s Strategic Control Over New Brine Assets

Codelco Lithium

Codelco lithium Ascotan plans mark another important step in Chile’s effort to keep stronger state influence over future lithium supply. Codelco and Quiborax formed a joint venture called Minera Ascotan and applied for a special lithium operating contract. That contract is required for lithium extraction in Chile. As a result, Codelco lithium Ascotan plans now sit at the center of Chile lithium strategy.

This move matters because Ascotan is not a minor asset. The salt flat is described as the third largest lithium reserve in Chile. That gives the project long-term strategic value inside one of the world’s most important lithium jurisdictions. Therefore, Codelco lithium Ascotan plans strengthen the state miner’s growing role in Chile’s next lithium phase.

The structure of the deal also reveals the political logic. Chile’s current framework requires public-private partnerships so the state can retain control while private capital supports development. That model has been in place since 2023 under the CEOL-based lithium strategy. Consequently, Chile lithium public-private partnership is now the main route for new project access.

Ascotan Salt Flat Adds to Codelco’s Expanding Lithium Portfolio

Ascotan salt flat adds another major asset to Codelco’s widening lithium position. The state miner is already set to become the majority owner in SQM’s Atacama operations from 2031. It is also advancing its partnership with Rio Tinto at Maricunga. As a result, Codelco lithium Ascotan plans are part of a broader portfolio build, not a standalone move.

That portfolio strategy matters because Chile wants more than royalty exposure from lithium. It wants stronger long-term participation in ownership, production, and strategic decision-making. Codelco is clearly becoming the state’s main operating vehicle for that ambition. Therefore, Ascotan salt flat could become another pillar in Chile’s effort to shape its own lithium future more directly.

The Quiborax partnership appears tactical as well as commercial. The article suggests Codelco likely chose a non-mining partner to secure the CEOL process more quickly. That reflects rising urgency ahead of a political transition. Meanwhile, it shows how project structure can be shaped by policy timing as much as geology.

Chile Lithium Strategy Faces a Political Test as New Leadership Nears

Chile lithium strategy now faces a more uncertain political backdrop. The article notes that incoming president Jose Antonio Kast has shown willingness to change the country’s lithium mining policy. He is scheduled to take office on 11 March. As a result, Codelco lithium Ascotan plans may also be an effort to lock in strategic progress before policy direction potentially changes.

The future ownership structure also remains important. Quiborax currently holds 66pc of the joint venture, but both initial partners are expected to make room for a new majority owner once the CEOL is granted. That new partner would be responsible for developing the project. Therefore, Chile lithium public-private partnership will remain central even if Codelco keeps strategic influence.

This makes the Ascotan move significant for the wider market. It shows Chile is still pushing forward with a state-guided lithium model, even as political uncertainty grows. If Codelco continues adding assets at this pace, Boric’s vision of making it Chile’s leading lithium producer could become more credible than many expected.

The Metalnomist Commentary

This move matters because it shows Chile is still trying to build lithium control through structure, not just ownership slogans. Codelco is becoming the state’s main instrument for that strategy. If Ascotan advances, Chile may prove that public-private lithium development can still move forward even in a changing political environment.

Chile Expands Lithium Exploration with Six New Priority Sites

Chile Lithium

Chile has designated six additional sites for lithium exploration, expanding its priority areas to 12 as the country looks to capitalize on its position as a global lithium powerhouse.

New Lithium Exploration Areas Announced

On December 5, Chile’s mining ministry revealed six new sites for lithium exploration in the Tarapacá and Antofagasta regions. These areas include:

• Hilaricos and Quillagua Norte in the Tarapacá region.
• Quillagua Este, Quillagua Sur, Maria Elena Este, and Cerro Pabellon in the Antofagasta region.

Unlike traditional lithium production from brine in salt flats, these new sites present opportunities for polymetallic mining and lithium extraction from clays or geothermal sources.

Exploration and Tendering Process

Chile plans to issue special lithium operating contracts (CEOLs) for each of the 12 priority sites. The tendering process for the first five areas will begin in early 2025, with interested companies required to:

• Hold at least 80% of the mining concessions for a given deposit.
• Submit background information by the end of January 2025 for a simplified process.

For Cerro Pabellon, where geothermal energy companies Chilean Enap and Italian Enel operate, a separate tendering process will be announced.

Indigenous Consultation and Sustainability

The Chilean government emphasized that indigenous consultations will be conducted before tendering any sites, ensuring compliance with sustainability and community engagement standards. This approach aligns with Chile’s broader efforts to develop its critical minerals sector responsibly.

Chile's Global Lithium Standing

Chile is a key player in the global lithium market, holding 36-40% of global reserves as part of the "lithium triangle" with Bolivia and Argentina. The country is the second-largest producer of lithium globally, and these new initiatives aim to further cement its leadership in the market amid soaring global demand driven by electric vehicles and renewable energy.

Chile to Approve Two More Lithium Concessions in Salar de Quillagua

Llamara Group

New CEOL Approvals Strengthen Chile’s Lithium Expansion Strategy

Chile’s mining ministry is advancing the approval process for two new special lithium operation contracts (CEOL) in the Salar de Quillagua salt flat. The approvals will go to two groups: the Llamara Group, a consortium of Chilean miners, and a Chilean-Canadian partnership formed by Sociedad Minera Aspromin, Wealth Minerals Chile, Inversiones Valeska Minerals, and Alto Exploradora. Each will be allowed to explore distinct northern and eastern sectors of the salt flat, with rights to exploit up to 80% of their allocated areas.

Indigenous Agreements and Global Lithium Competition

Before receiving final mining approval, both groups must secure agreements with indigenous communities potentially impacted by their operations. The mining ministry anticipates these negotiations will conclude within months; otherwise, a public bidding process will be launched. Since 2023, Chile has required all lithium projects to secure a CEOL via public-private partnerships, a framework designed to balance resource development with local and environmental considerations. This year alone, Chile has advanced five other CEOLs, awarded to companies including France’s Eramet, a joint venture between Eramet, Quiborax and state-owned Codelco, the Caliche Kairos consortium, and two to Rio Tinto.

The Metalnomist Commentary

Chile’s accelerated CEOL approvals signal a strategic push to strengthen its global position in the lithium market amid growing EV demand. However, the requirement for indigenous agreements underscores the country’s effort to balance economic growth with social responsibility. For international investors, timely alignment with local stakeholders will be crucial to securing long-term operational stability.

Codelco SQM Lithium Deal Approved by Chile’s Antitrust Authority, Paving Way for JV Control

Codelco-SQM

Chile's antitrust regulator FNE has approved the Codelco SQM lithium deal, a pivotal step toward consolidating state influence over one of the world’s most valuable lithium assets. The Codelco SQM lithium deal gives state-owned copper giant Codelco a path to majority control of the Atacama salt flat operations, currently run by lithium producer SQM.

Global Approvals Advance, Final Hurdles Remain in Chile

The deal has already received green lights from regulators in Brazil, South Korea, Japan, Saudi Arabia, and the European Union. Only China’s approval remains pending. However, for full execution, the transaction must also be cleared by Chile’s nuclear energy commission (CCHEN) and the national development agency Corfo, which is conducting community consultations with indigenous stakeholders in the region.

Codelco aims to finalize the joint venture in the second half of 2025. Under the agreement, Codelco will acquire a 51% controlling interest in the Atacama lithium operations beginning in 2031, when SQM’s current mining lease expires.

Atacama: The World’s Richest Lithium Reserve

Chile holds the world’s largest known lithium reserves, according to the U.S. Geological Survey (USGS). Most of these resources lie in the Atacama salt flat, a globally strategic asset for electric vehicle (EV) battery supply chains. The Codelco SQM lithium deal signals Chile’s long-term strategy to exert greater control over critical minerals while maintaining foreign investment through partnerships.

As the global lithium market becomes increasingly geopolitically sensitive, Chile’s model offers a blend of state participation and private sector efficiency—providing stability while advancing national resource policy.

The Metalnomist Commentary

The Codelco SQM lithium deal marks a defining moment in Chile’s shift toward strategic resource nationalism. With the Atacama salt flat under partial state control, Chile positions itself as a central player in the global clean energy transition, balancing national interests with commercial partnerships.

Codelco Copper Performance Faces Review Under Chile’s Kast Administration

Codelco

Codelco copper performance will come under tougher scrutiny as Chile’s new administration prepares to review the state-controlled miner’s finances, management and operational execution. Economy and mining minister Daniel Mas said the government will take a “very critical look” at Codelco to ensure it remains a major national company.

Codelco copper performance matters because the company remains one of the world’s largest copper producers, with direct output of 1.3mn t in 2025 and 1.4mn t including its share in non-operated mines. Any operational weakness at Codelco has direct implications for Chile’s copper supply, fiscal revenue and global refined copper expectations.

Codelco copper performance has also become a political issue because the company faces rising debt, safety concerns and cost overruns at major mine-life extension projects. The shareholder review scheduled for 20 April will focus on areas requiring concrete measures to improve performance.

Debt, Cost Overruns and Mine Projects Drive Government Scrutiny

The Kast administration’s review will examine Codelco’s financial position, management quality, safety record and project execution. Mas pointed to cost overruns tied to the renovation of Codelco’s corporate offices in Santiago and major investments at Rajo Inca and Chuquicamata underground.

These projects are strategically important because they support mine-life extensions at core Chilean copper assets. However, overruns can pressure capital discipline at a time when copper producers already face higher costs, lower ore grades and more complex underground development.

Mas also highlighted Codelco’s debt burden. The company took on $8.7bn in debt to help finance around $7bn in contributions to the state between 2022 and 2025, creating tension between its role as a national revenue source and its need to reinvest in production stability.

Lithium Strategy Review Adds Another Layer to Codelco’s Role

The government also plans to review Chile’s national lithium strategy inherited from the previous administration. However, Mas said the Codelco-SQM lithium venture will have security to operate if all legal stages have been completed.

Chile’s comptroller general approved the joint venture in December 2025, which was regarded as the final condition for the deal. The transaction gives Codelco 50% plus one share in Nova Lithium, the joint venture with SQM.

Mas argued that Codelco’s 2025 profit of $2.4bn was not a pure copper result, because only $388mn came from copper sales. The rest came mainly from the fair value of the SQM-linked lithium acquisition, adding to debate over how Codelco’s performance should be measured.

The Metalnomist Commentary

Chile’s review of Codelco shows that national copper champions face rising pressure to prove operational discipline, not only resource ownership. The bigger issue is whether Codelco can fund copper renewal, manage lithium expansion and still deliver fiscal value to the state.

 

Policy change in Argentina may boost Copper mining by revising glacier protections

Argentina Copper Mining

Policy change in Argentina may boost Copper mining as the government reviews glacier protection rules. Javier Milei says unclear glacier boundaries block investment and resource development. The review targets the Glaciers Law and the perimeter criteria set by IANIGLA. Meanwhile, miners seek legal certainty near the Andes where deposits meet protected zones.

Glacier boundary authority could shift to provinces

The proposal would let provinces define glacier perimeters instead of federal technical mapping. Supporters say clearer zones could unlock projects while protecting core ice. However, critics warn looser definitions could expand mining into sensitive watersheds. Meltwater from glacier systems supports rivers and agriculture across the country.

Copper projects and incentives drive investor interest

Large copper projects in San Juan Province could benefit if permitted areas expand. The list includes BHP and Lundin Mining’s Vicuña Project, plus Glencore’s El Pachón.

The RIGI program offers tax breaks and 40-year legal stability for large projects. Therefore, policy clarity plus RIGI could narrow the gap with Chile’s export scale. Rio Tinto cites stability guarantees as a key reason it entered the country, said Jakob Stausholm. Policy change in Argentina may boost Copper mining if congress rewrites the boundary framework. However, lawmakers must weigh investment gains against water-security and social-license risk.

The Metalnomist Commentary

Argentina’s copper upside is real, but the reform must survive court and community scrutiny. Meanwhile, investors will price permitting risk until provinces publish transparent glacier maps. Therefore, the best outcome couples faster approvals with verified safeguards for meltwater.

Chile to Boost Global Copper Production Share by 2034

Chile Copper

Strategic Mining Investments Propel Growth

Chile is poised to increase its stake in the global copper market significantly, with the Chilean copper commission, Cochilco, projecting that the country will enhance its share from 24% in 2023 to 27% by 2034. This growth is anticipated to come from new mining projects and expansions in the sector.

Rising Production and Investment Trends

According to Cochilco's recent forecast, Chile will see a steady increase in copper production, achieving a peak of 6.07 million tonnes by 2027. The forecasted growth represents a 5.6% increase annually over the next decade, culminating in a production of 5.54 million tonnes by 2034, up from 5.25 million tonnes in 2024. This expansion is supported by Chile’s extensive mining investment portfolio, which includes significant initiatives like the proposed $7.5 billion expansion of the El Abra mine, a collaborative effort between the U.S. firm Freeport-McMoran and Chile's state copper company, Codelco.

Shift in Production Dynamics

Cochilco’s report also highlights a shift towards the production of copper concentrates, which are expected to constitute 88% of Chile’s total copper output by 2034, up from 80% in 2024. This change is due to a decline in copper cathode output, driven by the depletion of oxide deposits. Additionally, global copper production is projected to reach a peak of over 25 million tonnes in 2026, before a gradual decline to around 20 million tonnes by 2034.

Chile Rejects Dominga Iron-Copper Project for Third Time

Andes Iron

Chile's government has once again denied environmental approval for Andes Iron's proposed Dominga iron and copper mine, citing significant environmental concerns. This marks the third time the project has been rejected, underscoring the challenges of balancing economic development with environmental protection in Chile's crucial mining sector.

Repeated Rejection and Environmental Concerns

A ministerial committee, led by the Ministry of the Environment (MoE), unanimously voted against the $2.5 billion project. The decision stems from concerns about the project's potential impact on biodiversity and the adequacy of Andes Iron's contingency and emergency plans for at-risk species. The committee's statement highlighted these environmental risks as the primary reasons for the denial.  This follows previous rejections in 2017 and 2023, with Andes Iron's appeals ultimately leading to a Supreme Court review in 2022, which seemingly did not sway the final decision.

Project Details and Industry Context

The Dominga project, an open-pit mine proposed for the Coquimbo region, aimed to produce 12 million tonnes per year of iron concentrate and 150,000 tonnes per year of copper concentrate as a byproduct over a 27-year lifespan.  Its rejection comes as Chile anticipates a substantial increase in copper production capacity—2.23 million tonnes per year between 2024 and 2033—driven by approximately $83.2 billion in mining investments across 51 projects.  This context emphasizes the tension between Chile's drive for mining development and growing environmental scrutiny.

Andes Iron's Response

Andes Iron has repeatedly asserted that the project complies with environmental regulations and has accused the MoE of bias.  The company's future course of action regarding the Dominga project remains uncertain following this latest setback.

Chile Rio Tinto Lithium Deposit Partnership Secures Largest Undeveloped Resource

Chile Rio Tinto

Chile Rio Tinto lithium deposit partnership emerged as Chile's national mining company Enami selected the Anglo-Australian miner to explore and develop the Altoandinos project, the country's largest undeveloped lithium deposit. The Chile Rio Tinto lithium deposit agreement establishes a public-private concession with Rio Tinto holding 51% ownership while Enami retains 49%, representing a combined $3 billion investment where Rio Tinto contributes $425 million for access to over 15 million tonnes of lithium carbonate equivalent resources.

Competitive Selection Process Validates Rio Tinto's Technology Leadership

Chile Rio Tinto lithium deposit selection followed Enami's unanimous board decision choosing Rio Tinto from a competitive pool including China's BYD, France's Eramet, and South Korea's Posco. Rio Tinto's proprietary direct lithium extraction (DLE) technology provided the decisive advantage, offering faster and more environmentally friendly operations compared to traditional evaporation methods. The DLE approach eliminates brine evaporation requirements while accelerating production timelines and reducing environmental impact.

Meanwhile, Rio Tinto's Rincon plant in Argentina serves as a demonstration and pilot facility for Chilean operations since both brine deposits share similar chemical compositions. This existing operational experience provides technical validation and reduces development risks for the Altoandinos project. Rio Tinto will assume complete operational responsibility while financing the project through financial operation and contributing to pre-feasibility study expenses.

Massive Resource Scale Supports 75,000 Tonne Annual Production

However, the Altoandinos salt flat contains substantial lithium resources exceeding 15 million tonnes of lithium carbonate equivalent with production capacity reaching 75,000 tonnes annually according to Enami projections. This production scale positions the project among global lithium industry leaders while supporting Chile's strategic objectives for lithium sector development. The resource magnitude justifies the $3 billion investment commitment from both partnership participants.

Therefore, the project timeline remains under development with no specific operational start date announced pending pre-feasibility study completion and regulatory approvals. The comprehensive development approach ensures technical optimization while addressing environmental and social considerations essential for sustainable lithium extraction. Rio Tinto's operational expertise combined with Enami's local knowledge creates optimal conditions for successful project implementation.

Strategic Expansion Reinforces Chile Lithium Market Leadership

Furthermore, the Altoandinos partnership follows Rio Tinto's recent selection by Chilean copper giant Codelco for the Maricunga salt flat exploration, representing Chile's second-largest undeveloped lithium deposit. This dual partnership positioning demonstrates Rio Tinto's strategic commitment to Chilean lithium development while reinforcing Chile's global lithium market leadership. The concurrent projects create synergies for technology deployment and operational efficiency.

As a result, Chile strengthens its position as the world's premier lithium jurisdiction through strategic partnerships with established international miners possessing advanced extraction technologies. The public-private partnership model enables state participation in resource development while leveraging private sector expertise and capital. This approach maximizes economic benefits while maintaining national control over strategic mineral resources essential for global energy transition.

The Metalnomist Commentary

Chile's selection of Rio Tinto for both the Altoandinos and Maricunga lithium projects demonstrates sophisticated resource development strategy that prioritizes advanced extraction technology and environmental sustainability over purely financial considerations. The emphasis on direct lithium extraction capabilities reflects Chile's commitment to maintaining global lithium leadership through technological innovation, particularly important as competition intensifies from emerging producers in Argentina, Australia, and other jurisdictions seeking market share.

NIU Group Copper Acquisition Expands Footprint in Chilean Mining Sector

Minera Tres Valles

The NIU Group copper acquisition of Chilean producer Minera Tres Valles (MTV) signals a bold entry into South America’s copper supply chain. MTV currently produces 5,000 tonnes per year (t/yr) of copper, with plans to scale to 13,000–15,000 t/yr by 2026. NIU aims to capitalize on copper's critical role in the global energy transition.

MTV’s Growth Potential Attracts Strategic Investment

NIU Group, a European investment firm founded by Austrian investor Cevdet Caner, has committed to expanding MTV's operations. MTV holds 460km² of mining rights in Chile’s copper-rich region, of which only 5% has been explored. Proven and probable reserves currently stand at 8.2 million tonnes. NIU will inject capital to ramp up development and increase production volumes.

The acquisition includes MTV’s integrated processing plant, offering NIU an efficient and scalable platform to supply growing global copper demand. Copper remains essential for electrification infrastructure, renewable energy systems, and electric vehicles, aligning with NIU's energy transition investment strategy.

NIU Sets Sights on Global Mining Expansion

While the NIU Group copper acquisition in Chile marks a key step, the firm plans to broaden its mining asset portfolio globally in 2025. This positions NIU to secure upstream materials critical to energy transformation initiatives in Europe and beyond.

The acquisition reflects growing investor interest in mining assets, particularly those supporting low-carbon technologies. Financial terms of the MTV deal were not disclosed, but the strategic intent is clear: control supply chains for critical minerals amid tightening global competition.

The Metalnomist Commentary

The NIU Group copper acquisition illustrates how private capital is targeting upstream resources to gain influence over decarbonization supply chains. MTV’s underexplored reserves and scalable output offer long-term upside aligned with global copper demand trajectories.

Argentina Glacier-Protection Reform Opens New Path for Copper Mining

Argentina glacier

Argentina glacier-protection reform has cleared the lower house, creating a major legal shift for the country’s copper industry. The reform allows provinces to decide which glaciers are functionally important to water resources and which areas may be opened to mining.

The approval followed senate backing on 27 February and passed the lower house late on 8 April by 137 votes to 111. President Javier Milei strongly supported the bill, making official promulgation likely.

Argentina glacier-protection reform could unlock copper resources located along the Andes, where many advanced projects overlap with glaciated areas. Supporters argue the change will reduce legal uncertainty and allow provinces to regulate their own natural resources.

Copper Projects Gain New Resource Expansion Potential

Argentina’s copper industry has remained underdeveloped despite a large resource base. The country holds 116mn t of copper resources, but exported only $4bn of the metal last year, far below Chile’s $50bn in copper sales.

The reform could materially change that outlook. Argentina’s 20 most advanced copper projects represent a combined $21.9bn in investment and may now be able to expand resource bases inside previously restricted glacier perimeters.

The mining secretary has forecast that Argentina could produce more than 1.5mn t/yr of copper by 2035, equal to 6.1% of global output. That target now looks more plausible if legal access improves and the government strengthens its large-investment incentive regime.

Argentina glacier-protection reform therefore comes at a critical moment for copper markets. Global demand from grids, electrification, renewable energy and industrial infrastructure needs large new projects, and Argentina is one of the few jurisdictions with major undeveloped copper potential.

Water Security Backlash Raises Political Risk

The reform has triggered strong opposition from environmental groups, lawmakers and parts of the public. Critics argue that easing glacier protections could threaten Argentina’s water security, especially because glacier meltwater supports rivers and agricultural systems.

Greenpeace activists protested outside the lower house in Buenos Aires and warned that the reform could open the way to damaging much of Argentina’s glacial environment. Opponents say drinking water reserves should not be exposed to mining risk.

Supporters of the reform insist that provinces will not permit mining on glaciers that are vital to water resources. However, implementation will depend on how provinces define “functional” and “non-functional” glaciers in practice.

This creates a new layer of project risk. Copper developers may gain legal opportunity, but they will still need political acceptance, environmental credibility and clear provincial rules to move projects into construction.

The Metalnomist Commentary

Argentina glacier-protection reform could become one of the most important copper policy changes in Latin America. The opportunity is large, but the social licence risk is equally serious if water security concerns are not managed with transparency and science.

Lundin Mining Adjusts Annual Copper and Zinc Production Guidance

Lundin Mining

Canada-based Lundin Mining has revised its full-year production guidance for copper and zinc, reflecting operational challenges and shifting market conditions. Despite a rise in third-quarter copper production, the company reported a decline in zinc output, prompting a recalibration of its production targets.

Copper Production Sees Mixed Results

Lundin Mining tightened its annual copper production guidance to 366,000-389,000t, down from the previous range of 366,000-400,000t. In the third quarter, Lundin achieved a copper output of 99,855t, an 11% increase year-on-year. This brought the total copper production for the first nine months of 2023 to 267,576t, a remarkable 27% rise compared to the same period last year.

Chile's Candelaria mine played a pivotal role, contributing 50,018t of copper in Q3, thanks to higher head grades. However, this increase was partially offset by disruptions at other assets:

Labour action in August at the Caserones mine in Chile.

A ground fall at the Eagle East mine in the U.S. during the second quarter.

Lower grades at the Neves-Corvo mine in Portugal.

These operational challenges led to a downward revision of production guidance at these sites.

Zinc and Nickel Production Declines

Lundin’s annual zinc production guidance was adjusted to 190,000-199,000t, reduced from the earlier projection of 195,000-215,000t. While output at Sweden's Zinkgruvan mine increased, it was counterbalanced by lower production at Neves-Corvo due to rehabilitation and development impacting mine sequencing. Refined zinc production in Q3 was down 6.4%, with 46,610t produced, bringing the year-to-date total to 139,758t, a 4% decrease compared to 2022.

Nickel production suffered a significant setback, plummeting nearly 80% year-on-year to 893t in the third quarter, largely due to reduced mining rates at Eagle East.

Molybdenum Production from Caserones Acquisition

Following the mid-July 2023 acquisition of the Caserones copper-molybdenum mine, Lundin began producing molybdenum. However, third-quarter output was 693t, approximately 37% lower than the same period last year.

These adjustments highlight Lundin Mining’s proactive approach to navigating operational hurdles while maintaining a focus on long-term growth and stability in a volatile commodities market.