- Write by:
-
Friday, November 13, 2020 - 11:56:05 AM
-
722 Visit
-
Print
Mining News Pro - Chilean regulators have accused Albemarle, the world’s largest lithium producer, of underpaying royalties by $11 million and vowed to take the US-based miner to international arbitration over what they called a breach of its contract with the government.
Corfo, which oversees Albemarle’s contract for lithium mining in Chile’s Salar de Atacama, told lawmakers the miner had misinterpreted the part of their agreement that outlines the basis for royalty payments, favoring a too-low commission on its sales.
“For (Corfo) it is unacceptable that Albemarle pretends to alter what was negotiated and agreed upon by the two parties,” said Corfo vice-president Pablo Terrazas in an Oct. 14 letter to lawmakers viewed by Reuters. He said the disagreement represented a “breach” of the 2016 contract that increased Albemarle’s quota to extract lithium.
Albemarle rejected those claims in a statement to Reuters on Wednesday, saying Corfo’s call for arbitration was unnecessary. Albemarle said it has met its royalty obligations and the contract makes clear such disputes can be settled without arbitration.
“We do not understand Corfo’s insistence on international arbitration, which is a process that will take years and will mean an enormous expense…for the State,” Albemarle said.
The latest spat comes two months after Albemarle locked horns with Chilean nuclear agency CCHEN over reserves data. CCHEN has demanded additional information on reserves held by Albemarle at Atacama, details regulators say they need to assure the miner can sustain increased output. The two are still discussing the matter, Albemarle told Reuters.
Albemarle has been pushing to expand its production in Chile. Marketwatchers expect demand for the white metal to triple by 2025 as automakers produce more electric vehicles (EVs).
The coronavirus pandemic and falling prices, however, have set many producers back, forcing them to shelve projects, cut costs and temporarily tamp down output.
Short Link:
https://www.miningnews.ir/En/News/608315
Chile’s state-run miner Codelco plans to select a partner for a future lithium project in one of the country’s top salt ...
Chile’s SQM called another investors meeting at the request of its second-largest shareholder, Tianqi Lithium Corp., ...
Lithium supplier Vulcan Energy on Wednesday announced the start of production of the first lithium chloride at its ...
A stuttering recovery in lithium prices is providing a fresh reminder of why the dramatic rally of recent years was ...
A US and European Union push to reach an accord on fostering critical mineral supply chains is set to miss another ...
Trading of CME Group Inc.’s nearly three-year-old lithium hydroxide futures contract is soaring, with more funds ...
Chile’s mining production is starting to turn the corner after months of a sustained output slump, with the country’s ...
Undeterred by slumping profits, China’s lithium giants are planning to grab a bigger slice of the market.
Mitsui & Co said on Thursday it will spend $30 million to take a 12% stake in US-based Atlas Lithium to venture into ...
No comments have been posted yet ...