In a column published in the newspaper *El Mostrador*—a publication in which Senator Alejandro Guillier regularly expresses his views—the chairman of the Senate Energy Committee called for improving technology, creating synergies, and pursuing a strategic long-term approach to lithium.
El Mostrador
13-10-2014
Alejandro Guillier: Chile and Lithium
The National Lithium Commission, convened by President Bachelet, made a presentation to the Senate Committee on Mining and Energy to report on the progress of the debate regarding a national policy for the exploitation of this resource. As Mining Minister Aurora Williams explained, this proposal is expected to “envisage diversified, efficient, and effective production that will ensure optimal profitability for our country.”
As we know, 65% of the world’s reserves of this non-metallic mineral are found in the salt flats of Chile(31%) and Bolivia (34%). Global production totals 155,000 metric tons of lithium carbonate, with Chile contributing 70,000 metric tons per year. Ten companies control the global lithium market, and SQM is the world’s largest producer, accounting for 24%. In turn, the Chilean Lithium Society contributes another 17%. There’s good news: in 2013, a metric ton of this resource traded at $6,000—three times the $2,000 it was priced at in 2000.
We see the work of this Commission as an unparalleled opportunity to promote a virtuous cycle among natural resources, science, technology, and innovation. Applied knowledge, combined with a partnership between the government and the private sector—including foreign investment—could form the basis for a policy of sustainable management of this resource. But more importantly, it offers the opportunity to bring about a substantive shift away from the extractive rentier model that has prevailed in Chilean mining. Chile has few “world-class” resources. Copper, lithium, and molybdenum are among them. We must make a strategic, forward-looking commitment that extends beyond the term of a single administration and focuses on the global development of the lithium industry, looking ahead to the next 20 or 30 years.
Two ideas for discussion: First, strengthen the work being carried out by the Lithium Innovation Center (CNL), part of the University of Chile, where—despite scarce financial resources and limited government support—an interesting initiative in applied research focused on industry and cutting-edge technology has been underway since 2010. In particular, in the field of electromobility as an alternative to petroleum (gasoline and diesel). We could develop a pilot project using this technology in a medium-sized city in northern Chile. Second, I cannot fail to mention the virtuous synergy we should be fostering between the development of solar energy and lithium. I do not see this synergy or dialogue among the various ministries, government agencies, research centers, international cooperation organizations, and business associations in our country.
Whatever decision the Lithium Commission reaches—or fails to reach—by the end of November will send a powerful signal about the “new deal” we want to establish for the future of the exploitation of natural resources belonging to all Chileans. This includes the strategic role we assign to the government; the criteria—beyond the mere exploitation of the resource—by which we select strategic partners; and our commitment to ventures that prioritize greater added value, technological innovation, and value chains with a global perspective.
*Senator, Chair of the Senate Committee on Mining and Energy
Source: http://www.elmostrador.cl/opinion/2014/10/13/chile-apuesta-por-el-litio/
