In a column published in the digital newspaper El Mostrador, where Senator Alejandro Guillier regularly contributes, the President of the Senate Mining and Energy Committee called for technological improvements, the creation of synergies, and the pursuit of a strategic focus on the future of lithium.
El Mostrador
13-10-2014
Alejandro Guillier: Chile’s Commitment to Lithium
The National Lithium Commission, appointed by President Bachelet, presented to the Senate Mining and Energy Committee to report on the progress of discussions regarding a national policy for the exploitation of this resource. As Minister Aurora Williams stated, this proposal is expected to "consider efficient, effective, and diversified production that ensures optimal profitability for our country."
As is well known, the salt flats of Chile (31%) and Bolivia (34%) contain 65% of global reserves of this non-metallic mineral. Global production has reached 155,000 tons of lithium carbonate, with Chile contributing 70,000 tons annually. Only ten companies control the global lithium market; SQM, with a 24% share, is the world's largest producer, while the Chilean Lithium Society (Sociedad Chilena del Litio) holds 17%. Furthermore, market trends are favorable: in 2013, a ton of this resource traded at USD 6,000—triple the price of USD 2,000 recorded in 2000.
Within the work of this Commission, we see an excellent opportunity to promote a virtuous synergy between natural resources, science, technology, and innovation. Applied knowledge, combined with a partnership between the State and private entities—including foreign investment—could articulate a sustainable policy for managing this resource. More importantly, it offers the opportunity to significantly shift away from the extractive-rentier model that has historically dominated the Chilean mining industry. Chile possesses several "world-class" resources, including copper, lithium, and molybdenum. We must establish a strategic focus with a long-term vision that transcends government cycles and supports the global development of the lithium industry, projecting forward for the next 20 or 30 years.
Two main ideas are currently under debate: first, strengthening the work of the Lithium Innovation Center (CNL, for its Spanish acronym), part of the University of Chile, where since 2010—despite limited funding and state support—there has been a compelling focus on industrial applied research and cutting-edge technology, particularly in electromobility as an alternative to fossil fuels (gasoline and diesel). This technology could be implemented as a pilot project in a mid-sized city in northern Chile. Secondly, I must emphasize the virtuous integration that should be promoted between solar energy development and lithium—a synergy and dialogue that I find currently lacking among the various ministries, state agencies, research centers, international partnerships, and business associations in our country.
With a deadline set for late November, the Lithium Commission's resolutions will send a powerful signal regarding the "new deal" we wish to define for the future exploitation of natural resources belonging to all Chileans. This includes the strategic role assigned to the State; the conditions—beyond mere extraction—for selecting strategic partners; and a commitment to ventures involving added value, technological innovation, and global value chains.
*Senator, President of the Senate Mining and Energy Committee
Source: http://www.elmostrador.cl/opinion/2014/10/13/chile-apuesta-por-el-litio/
