Corfo (a Chilean state-controlled entity) & SQM have agreed to new production quotas and also a new royalty schedule. Now, both Albemarle & SQM will be paying a high sliding-scale royalty for production out of their Atacama salar operations.
See my tweet on this subject:
At a Lithium carbonate (or LCE) price of US$ 15,000/tonne, the royalty paid to Cofro = US$ 3,372/tonne or 22.5%.
At US$ 20,000/tonne the royalty is US$ 5,372/tonne or 26.9%... Combined, Albemarle & SQM will be producing a large % of global lithium carbonate supply from their Atacama operations in the 2020's. This is great news for Argentina lithium players / all non-Chile players (incl. WA hard rock projects).
Great news for Galaxy's Sal de Vida lithium project!
GXY Price at posting:
$3.83 Sentiment: None Disclosure: Not Held
