Codelco and Quiborax Form Joint Venture for Lithium Exploration in Chile's Salar de Ascotán

Strategic Partnership Formed

Chilean state-owned mining company Codelco and local acid producer Quiborax have officially formed a joint venture named Minera Ascotán SpA. The primary objective of this new entity is to secure a Special Lithium Operation Contract (CEOL) for the development of lithium resources in the Salar de Ascotán salt flat, located in northern Chile's Antofagasta Region. This move is a direct response to Chile's National Lithium Strategy, which seeks to boost the country's role in the global lithium industry.

The initial ownership structure of Minera Ascotán SpA sees Quiborax holding a 66% stake, while Codelco retains 34%. However, the companies have indicated plans to seek a new majority partner once the operating contract is successfully obtained, aiming to further develop the potential project.

Salar de Ascotán: A New Frontier for Lithium

The Salar de Ascotán is recognized as Chile's third-largest salt flat by surface area with brine content. Situated at an altitude between 3,900 and 4,000 meters above sea level, the area possesses attractive exploration potential for various compounds, including lithium, potash, boron, sodium, and magnesium. Unlike the more developed Salar de Atacama, Salar de Ascotán has not yet been extensively explored for lithium, marking this joint venture as a significant step into a new frontier for Chilean lithium production.

The joint bid for the operating contract was initially submitted by Codelco and Quiborax in January 2025, alongside French company Eramet, which is no longer part of the current planning. The Mining Ministry is expected to present the joint venture and its contract terms to Chile's Comptroller General in the coming weeks for ratification.

Alignment with National Lithium Strategy

This partnership underscores Chile's commitment to its National Lithium Strategy, introduced in April 2023. The strategy emphasizes several key features:

• The promotion of public-private partnerships across the entire lithium industrial cycle.
• The state retaining a majority stake in projects deemed strategic.
• An emphasis on adopting new, environmentally friendly lithium extraction technologies.

Codelco's involvement in lithium joint ventures represents a strategic evolution for the company, aiming to diversify revenue streams beyond copper and leverage its expertise in large-scale mineral extraction. Daniel Ocqueteau has been appointed as the general manager for Minera Ascotán SpA. The board of directors includes Jaime San Martin and Felipe Killian representing Codelco, and Allan Fosk, Ignacio Riva Posse, and Yatsen Lee for Quiborax.

Quiborax's Role and Future Outlook

Quiborax, established in 1986, is a significant producer of boric acid, with operations primarily in northern Chile. The company holds mining rights to salt flats that also possess considerable potential for lithium production, making it a natural partner for this venture. Codelco's board president, Maximo Pacheco, highlighted the importance of this initiative, stating, 'Lithium is key to the planet's energy future, and Chile has a unique opportunity.' This joint venture is a distinct effort from Codelco's other lithium partnership with SQM in the Salar de Atacama, indicating a broader strategy by the state miner to expand its footprint in the critical mineral sector.