What follows are excerpts from the Companies NI43.101 Report and...

What follows are excerpts from the Companies NI43.101 Report and from a recent article published by Bloomberg.

The answer to your question is left to your judgement.


Chilean regulations respecting lithium production

Lithium is considered a non-concessionable mineral in Chile. As such, production is controlled under regulations promulgated under various acts and regulations, the key one being D.L. No 2886/1979, which established lithium as a strategic resource based on Article 19, No. 24, paragraphs 6-10 of the Constitution; Constitutional Organic Law No. 18,097 (21 January, 1982) on Mining Concessions; the Mining Code Law 18,248 of Oct. 3, 1983 and the Regulations of the Mining Code of 27 Feb. 1987.

Under the above laws and regulations, lithium production can only be undertaken by state companies or under Special Operating Contracts (CEOL) or Administrative Concessions by private companies.

It is to be noted that mineral tenements, including lithium tenements, registered under the 1938 Mining Law are “grandfathered” from the provisions of the 1982 Mining Law and D.L. No 2886/1979 which means that they don´t need a CEOL to be exploited.

Of the total 2,563 hectares for which the resource has been defined at the Maricunga JV project, 1,125 hectares are grandfathered tenements.

Source: Reidel, Brooker and Ehren, “Technical Report. Lithium & Potassium Resource Estimate. Maricunga Joint Venture, III Region, Chile. Prepared for Lithium Power International, Minera Salar Blanco S.A., and Bearing Lithium Corp.” (August 25, 2017, Page 168)
Retrieved on 19 October 2017 from http://www.sedar.com/GetFile.do?lan...ssuerType=03&projectNo=02614967&docId=4097934
The current situation

16 October 2017

In Chile, lithium producers must get a license from both the Chilean Nuclear Energy Commission (“CCHEN”) and the Mining Ministry. The Ministry hasn’t awarded a permit in more than two decades, while CCHEN has only ever approved new quotas for incumbents Albemarle Corp. and Soc. Química & Minera de Chile SA, as well as state copper producer Codelco.

A number of prospective new players are waiting for the new lithium rules to apply for their own licenses. Still, the nuclear agency’s role won’t change.

“We will make no changes to CCHEN in the short term,” Mining Minister Aurora Williams said in an interview last month. “We think it’s reasonable that CCHEN verifies lithium extraction quotas, as well as transactions.”

Jaime Alee, a professor who heads the Lithium Innovation Center in Santiago, sees no technical reason why lithium should be considered strategic or why CCHEN should control its extraction and sales.

Lithium is found in several countries, but only Chile and Bolivia require a special authorization, he said.

“It makes no sense,” Alee said. “But changing its status means changing the law, which could take from three to four years and there’s no time for that. So the most practical option is to work with what we have.”

Source: https://www.bloomberg.com/news/arti...es-stand-between-carmakers-and-lithium-riches