Chile Forum

by **greg~judy** » Wed Feb 08, 2012 6:52 am

yeah, yeah... how many times do you hear it...
chile is copper country... blah, blah, blah...
wanna know something --- chile is really "lithium" country!

Lithium mine production (2011) and reserves in tonnes

Argentina -----3,200---------850,000
Australia ------9,260---------970,000
Brazil----------160------------64,000
Canada--------480------------180,000
Chile-----------12,600--------7,500,000
China-----------5,200 --------3,500,000
Portugal--------820-----------10,000
Zimbabwe-----470------------23,000
World total-----34,000-------13,000,000

... and now this...
Chile to auction lithium mining contracts
World top copper producer seeks to promote lithium industry
http://www.reuters.com/article/2012/02/07/chile-lithium-idUSL2E8D7IPY20120207

we'd make a small wager that every allchilean has/uses some (more/less) lithium
it's quite pervasive stuff these daze!
we wonder if allchileans realize how widespread applications for lithium are...
(and will become - in the future)

Usage of lithium in the USA in 2010
Ceramics and glass (31%)
Batteries (23%)
Lubricating greases (9%)
Other (15%)
Air treatment (6%)
Primary aluminum production (6%)
Continuous casting (4%)
Rubber and thermoplastics (4%)
Pharmaceuticals (2%)

btw - a bit of trivia...
just as we all know coca-cola once contained cocaine...!
did you know 7-up once contained lithium...?
it was originally marketed in the 20's as ""Bib-Label Lithiated Lemon-Lime Soda"
it contained lithium citrate - a classic "mood stabilizer"
ok, they finally removed it in 1948...

but we digress...
bipolar disorder notwithstanding - we all use a bunch of lithium these daze...
and will only be using more in the daze of the future.
hence - the chilean gubmint is being quite proactive here in industry promotion
...Chilean laws...classified the mineral as "strategic"...

regular allchileans will know - g~j like commodities (all kinds)
and now, we are starting to focus a bit more on chilean lithium plays
i.e. currently researching some good up-and-coming opportunities...
we fully intend to put our pesos where our pie-holes are...
who knows - other allchileans may wish to DYODD
:idea:

by **Fugger** » Wed Feb 08, 2012 8:49 am

Interesting topic. Thank you.

Information from USGS on Lithium: http://minerals.usgs.gov/minerals/pubs/ ... -lithi.pdf

Interesting that Bolivia is missing in the list, but then mentioned in the text having 9 million tonnes of reserves.

Short term (2011) Lithium investments were not so good. Lithium ETF down -36% in 2011 (http://globalxfunds.com/Fact_Sheet/Fund120.pdf). Probably it is better to own SQM directly

although at the moment they trade at a PE of more than 30.

From my perspective I also see Lithium as more interesting than Copper in the medium term, particularly because substitution and recycling is less of a threat and the battery business has indeed great potential.

by **greg~judy** » Wed Feb 08, 2012 10:22 am

Fugger wrote:Interesting topic. Thank you.
...
Interesting that Bolivia is missing in the list, but then mentioned in the text having 9 million tonnes of reserves.
...
From my perspective I also see Lithium as more interesting than Copper in the medium term, particularly because substitution and recycling is less of a threat and the battery business has indeed great potential.

de nada - we are happy (at least) you found the topic to be of interest...
arguably few will - (perhaps their [holistic] loss?)

but yes, recent Li development in bolivia is also something to keep an eye on...
to wit...
The Salar de Uyuni in Bolivia, at an altitude of 3,650 metres covers an area of 9,000 Km2. Unlike the
major lithium containing salares in Chile and Argentina it is completely flat due to annual flooding.
Ballivian and Risacher (1981) reported on brine grades of 0.035% Li and 0.72%K. Grades are highest in
the southeastern portion of the salar. They calculated total lithium reserves as 5,500,000 tonnes.
The magnesium/lithium ratio is high at 22/1.
Other salares, also found as the result of shrinkage by evaporation from a Lake Minchin of Pleistocene age,
include the large salares of Emprexa and Coiposa with spot samples grading up to 370 and 580 ppm Li
respectively.

and of course, argentina plays are well developed (and developing)
to wit...
After failing to negotiate a satisfactory agreement with the Bolivian Government regarding the possible
development of the Salar de Uyuni, FMC, in 1995, negotiated rights to the Salar de Hombre Muerto in
Argentina.
The salar, with a salt nucleus covering 280km2 but at an altitude of over 4,000 metres has a relatively low
lithium content but with a very low concentration of “impurities”, in particular an exceptionally low
magnesium/lithium ratio of only 1.37/1.
The company opted for a proprietary recovery technique involving selective absorption from in-situ brine.
There were major capital and operating cost over-runs and carbonate production was suspended for a few
years in the early 2000’s although chloride production continued. The company became reliant upon
Chile’s SQM for carbonate but this contract is thought to have expired in 2007.
The brine grades 0.062% Li and proved and probable reserves to a depth of 70m total 850,000 tonnes.
Admiralty Resources, an Australian company plans to commence production of carbonate, chloride and
hydroxide in 2008 from the Salar de Rincon. The company will also produce potash at an initial rate of
about 60,000 tpa.
The salar is located at an altitude of 3,740 metres. The salt nucleus covers 280km2 and the brine grades
0.033%Li and 0.624%K. The Mg/Li ratio is about 8.6/1.
Proved and probable insitu reserves are 1,860,000 tonnes Li.
Numerous other salares exist in the Argentinian altiplano and these are listed below –
Area Km2 Reputed av.grade (mg/lt)
Pastos Grandes 29 384
Centenario 59 231
Rotones 38 461
Pazuelos 57 257
Cauchari 44 414
Olaroz 140 306
Antofalla 518 150
The extent to which these salares have been studied is not

but then again - being allchileans - we must focus on our own resources...?
to wit...
The Salar de Atacama, at an altitude of 2,300 metres, is located approximately 200 kms inland from the Pacific coast. The basin covers an area of about 3,000 km2 with a salt nucleus covering 1,400 km2.
At the northern end of the nucleus a drill hole was still in salt when terminated at 1,000 metres.
The Salar was first developed by Foote Minerals in partnership with CORFO, a Government agency, in
1984. Subsequently CORFO sold its interest to Foote and later Foote was acquired by Cyprus Minerals
then by Chemetall and finally by Rockwood Holdings.
To the writers knowledge the reserve data were never published but are estimated at 500,000 tonnes Li
prior to the commencement of production. The company co-produces about 80,000 tpa of potassium
chloride.
In 1986, Amax Exploration together with a Chilean partner reached an agreement with CORFO regarding
the possible development of much of the rest of the salar but their rights were later acquired by Sociedad
Quimica y Minera (SQM) a major producer of nitrates and iodine.
The initial reserves, over 790km2, were calculated at 26.0 million tonnes of potassium and 1.8 million
tonnes of lithium at an average grade of 0.18%Li. These were in respect of the uppermost 40 metres of the
aquifer.
SQM developed the project in two phases. The first in the area of highest grades of potassium for the
production of potassium chloride and lithium, the second in an area of high sulphate values from which
they recover potassium sulphate and boric acid. Lithium, currently, is recovered only from the more
southerly well field/solar pond system although the feed grade at the northern location, at about 0.11% Li is
considerably higher than those at the Argentinian salares.
Large quantities of lithium are returned to the salar as the quantities of brine pumped to produce in excess
of 800,000 tpa of the two potash products contain much more lithium than the installed lithium pond and
plant capacity.
In 2008 SQM (personal communication) revised the reserve estimate for its block of claims resulting from
the inclusion of brine to a depth of 200 metres. This new estimate is for 77.2 million tonnes of potassium
and 6.0 million tonnes Li.
The total reserves of the Salar de Atacama are unknown. In addition to the tonnages beneath the
Rockwood and SQM mining claims covering 957km2, there are “buffer zones” between the properties
covering approximately 100 km2 and there are unclaimed areas to the north of the SQM claims with lithium
values in excess of those in the Argentinian salares. A tentative total for these other areas is 400,000 tonnes
Li taking the total to 6.9 million tonnes.
Other Chilean salares includingPedernales, Punta Negra, Maricunga and Incahuasi, are lithium containing.

so as you succinctly state fugger...
lithium is going to be VERY interesting in the near~far term chilean future
for the reasons you stated - and more...
so stay tuned to future Li newz
some may even potentially profit by this (if they care to)?
(con suerte, of course - plus ye aulde due diligence)
:idea:

by **ryanar** » Wed Feb 08, 2012 10:40 am

greg~judy wrote:hence - the chilean gubmint is being quite proactive here in industry promotion
...Chilean laws...classified the mineral as "strategic"...

"Chile is the only country in the world that still considers lithium a strategic mineral and limits concessions." - quote from a Mining News article today.

Being the only country still to do this either makes them genius' or idiots. Any thoughts on which might apply in this case? :lol:

Some other info - demand for Li is forecase to grow to 450kt/yr by 2025 due to growth in demand for car batteries. Current demand is around 140kt/yr.

by **greg~judy** » Wed Feb 08, 2012 10:59 am

ryanar wrote:
greg~judy wrote:hence - the chilean gubmint is being quite proactive here in industry promotion
...Chilean laws...classified the mineral as "strategic"...

"Chile is the only country in the world that still considers lithium a strategic mineral and limits concessions." - quote from a Mining News article today.

Being the only country still to do this either makes them genius' or idiots. Any thoughts on which might apply in this case?

Some other info - demand for Li is forecase to grow to 450kt/yr by 2025 due to growth in demand for car batteries. Current demand is around 140kt/yr.

obviously in our own admittedly narrow~subjective opinion here...
lithium has no where to go but UP...
in both future demand and future price...
those who can "supply" - will be the winners in this particular "game"
?this may just be your proverbial "no-brainer"?
although others may wish to opine that it's a fool's play...
well - whatever - no worries - it's still up to the individual, isn't it?
--- individual gubmints, individual companies, individual speculators, individual naysayers...?
you're IN or you're OUT - take yer pick?

by **greg~judy** » Sun Feb 12, 2012 6:27 am

Under current Chilean law, lithium is not exploitable via regular mining concessions and, no new lithium concessions have been issued since 1982. The Chilean Mining Code ("CMC") establishes the reserve of lithium to the State of Chile and expressly provides that the exploration or exploitation of "non-concessible" substances (which includes lithium) can be performed only directly by the State of Chile, or its companies, or by means of administrative concessions or special operation contracts, fulfilling the requirements and conditions set forth by the President of the Republic of Chile for each case...

Over the last several days, numerous press releases have circulated in Chile outlining the government's plans to improve its worldwide competiveness. The Boost Competitive Agenda (a package of reforms to remove regulatory red tape, to encourage entrepreneurship, innovation, competition and boost productivity of the economy) is coordinated by the Office of Competiveness of the Ministry of Economy and was initiated in August 2011. With the bulk of the measures having already been met, on Tuesday, February 7th, 2012, the Office of Competitiveness introduced ten new measures to extend the government's commitment to ensure that development continues to reach Chile. According to the article, Pablo Longueira, the Minister of Economy, detailed each of the measures, including the seventh, "Re-launching the Chilean Lithium Industry," which specifically addresses lithium by: "Unlocking its restrictions and implementing mechanisms to improve competitiveness within the industry, promote further investment and protect the country's market-share and standing in the world lithium market."

Senior Chilean official, Pablo Wagner, Vice Minister of Mining, outlined the basis for how the country plans to address existing laws in order to allow the exploitation of lithium with the objective of maintaining Chile's leading lithium producer status. Among other things, Minister Wagner announced plans to conduct an auction for lithium production quotas and licenses (Special Lithium Operations Contracts, or CEOLs), in a manner that wouldn't require any changes to existing mining laws. The CEOLs to be tendered will be for 100,000 tons of lithium metal (approximately 530,000 tons of lithium carbonate equivalent), be valid for twenty years and consist of a yet to be determined upfront payment as well as a seven percent of sales royalty paid to the Chilean government. The Ministry of Mining has been preparing to issue CEOLs for well over a year and expects to issue the first CEOL the fourth quarter of 2012.

it will be interesting to see which companies will get the CEOLs...
g~j are currently researching a few Jrs (with JV potential)?
a proper pick (or two) will undoubtedly enhance some (personal) speculative profits.

and those 7% royalties for the gubmint...!
a goodly pile of potential pesos - to augment the always-needy coffers!
Li seems a rosy play for 2012, may any/all enjoy some ensuing benefits !

btw - mining companies currently pay a royalty between 4-5 percent...?
a new bill (2010) initially set a (sliding) royalty at 4-9 percent...?
but, this will rise to 5-14 percent - starting in 2018???

by **Dosedmonkey** » Mon Feb 13, 2012 5:19 pm

Increased demand in car batterys? Increased demand in all types of batterys!

The most expensive of which I have purchased are for power tools. Lithium ion batterys are currently by far the best for these smaller applications, although pretty high in price, you don't need to run them down until they are dead, and are some of the only batterys that trickle charge with out killing their life off, or having to be open cover style for maintenance.

Although it is in a lot of things, how much is used in some of those indicated applications would be small. Is Chile stupid for limiting the concession of lithium and thinks it will be a strategic mineral, defenetly not, in fact all materials should be carefully controled, counted for and thought about if we don't want to fall into the same traps that we have with precious metals used for electronics. Especailly as anything used for batterys is meant to be part of the solution to when we run out of fossil fuels!

by **admin** » Mon Feb 13, 2012 5:34 pm

you know I just had a lithium battery die on a laptop that was over 13 years old. I have dozens of batteries from phones and such sitting in a closet that are perfectly fine. I really think the demand, or more exactly the potential shortage, is over blown. No one is even really thinking about recycling the stuff yet.

Bolivia I heard somewhere has like half the known reserves of the world, just the country is such a politically unstable mess no one wants to go after it. If bolivia ever got the their act together, lithium would be pretty worthless as a comodotity.

This all asumes we are not going to find a cheaper battery material or tech, and even lithium tech is getting more efficient all the time. It hardly takes very little more lithium to make more efficeint batteries.

Uranium futures anyone?

by **zer0nz** » Mon Feb 13, 2012 5:37 pm

Dosedmonkey wrote:Increased demand in car batterys? Increased demand in all types of batterys!

The most expensive of which I have purchased are for power tools. Lithium ion batterys are currently by far the best for these smaller applications, although pretty high in price, you don't need to run them down until they are dead, and are some of the only batterys that trickle charge with out killing their life off, or having to be open cover style for maintenance.

Although it is in a lot of things, how much is used in some of those indicated applications would be small. Is Chile stupid for limiting the concession of lithium and thinks it will be a strategic mineral, defenetly not, in fact all materials should be carefully controled, counted for and thought about if we don't want to fall into the same traps that we have with precious metals used for electronics. Especailly as anything used for batterys is meant to be part of the solution to when we run out of fossil fuels!

welcome back to the land of the internet!

by **Dosedmonkey** » Mon Feb 13, 2012 5:52 pm

admin wrote:you know I just had a lithium battery die on a laptop that was over 13 years old. I have dozens of batteries from phones and such sitting in a closet that are perfectly fine. I really think the demand, or more exactly the potential shortage, is over blown. No one is even really thinking about recycling the stuff yet.

Is that a standard lithium battery or lithium ion? As they are going to last even longerrr as the technology improves. Mostly they have just improved their density though.

Thanks, just got back two days ago from the joys of patroling the south atlantic. So wheres the thread where I can dispel the media lies (south america but also united kindoms) about the Falklands (Malvinas as latinos know it).

by **greg~judy** » Mon Feb 13, 2012 7:32 pm

Dosedmonkey wrote:Thanks, just got back two days ago from the joys of patroling the south atlantic. So wheres the thread where I can dispel the media lies (south america but also united kindoms) about the Falklands (Malvinas as latinos know it).

since you ask so nicely d~m...
g~j will permit this one tangent from our lustrous lithium thread...
please go to this link for what you ask...
http://www.globalresearch.ca/index.php?context=va&aid=29239
please respond to it on an appropriate thread - you could try this one...
http://www.allchile.net/chileforum/topic3907-180.html
:alien:

by **greg~judy** » Mon Feb 13, 2012 10:05 pm

greg~judy wrote:but then again - being allchileans - we must focus on our own resources...?
to wit...

...SQM developed the project in two phases. The first in the area of highest grades of potassium for the
production of potassium chloride and lithium, the second in an area of high sulphate values from which
they recover potassium sulphate and boric acid. Lithium, currently, is recovered only from the more
southerly well field/solar pond system although the feed grade at the northern location, at about 0.11% Li is considerably higher than those at the Argentinian salares.
Large quantities of lithium are returned to the salar as the quantities of brine pumped to produce in excess
of 800,000 tpa of the two potash products contain much more lithium than the installed lithium pond and
plant capacity.
In 2008 SQM revised the reserve estimate for its block of claims resulting from
the inclusion of brine to a depth of 200 metres. This new estimate is for 77.2 million tonnes of potassium
and 6.0 million tonnes Li.
The total reserves of the Salar de Atacama are unknown. In addition to the tonnages beneath the
Rockwood and SQM mining claims covering 957km2, there are “buffer zones” between the properties
covering approximately 100 km2 and there are unclaimed areas to the north of the SQM claims with lithium values in excess of those in the Argentinian salares. A tentative total for these other areas is 400,000 tonnes Li taking the total to 6.9 million tonnes.

some may even potentially profit by this (if they care to)?
(con suerte, of course - plus ye aulde due diligence)

so, g~j snooped around some chilean salares a bit...
to see who-owns-what --- re some of these "unclaimed areas"
(one must be careful, however - what might border on Los Flamencos National Reserve?)
seems in 2009, all the areas surrounding a SQM property were bought by a Canukistan Jr.
the salar in question is about 70 km from SQM's major facility in salar de atacama

"...it has purchased 100% of 8 pedimentos (claims) making up 1900 Ha of the Chilean Salt Lake known as Salar de Aguas Calientes. The Company now owns eight (8) of nine (9) claims that make up the Salar. One (1) claim of 400 Ha is currently owned by Sociedad Quimica y Minera de Chile S.A. (SQM), the primary producer of Lithium in the region."

: salar ac.png (243.91 KiB) Viewed 140 times

well, acquiring SQM at $59-60 is a bit rich for our blood...
but, that Canuk company owns 100% of the 8 pedimentos around the SQM property.
(btw - said company is also seeking a JV w/ SQM)
perhaps one might consider acquiring a small speculative position in said company
then bide some time for the JV - just don't be in a hurry!
suerte!
:idea:

Chile Forum

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Who is online

Need Help In Chile?

Phone From Outside Chile: 1-917-470-9653 ( USA to Chile)
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Chile Forum

Who is online

Need Help In Chile?

Phone From Outside Chile: 1-917-470-9653 ( USA to Chile) In Chile Land Line: (56) 65 421 024 Cell Phone 747 97974 (From a Cell Phone in Chile dial with no other numbers)

Phone From Outside Chile: 1-917-470-9653 ( USA to Chile)
In Chile Land Line: (56) 65 421 024
Cell Phone 747 97974 (From a Cell Phone in Chile dial with no other numbers)