Chile Approves Codelco-SQM Public-Private Partnership Agreement The Chilean National Economic Prosecutor's Office (FNE) approved the public-private partnership agreement between the Chilean National Copper Corporation (Codelco) and the Chilean Mining and Chemical Company (SQM) on the 24th local time, with accompanying mitigation measures. The agreement involves the establishment of a joint venture to extract lithium hydroxide and lithium carbonate from the Atacama Salt Lake, with management divided into two phases: controlled by SQM from 2025 to 2030, and by Codelco from 2031 to 2060. The FNE analyzed that the transaction might reduce competition, but the mitigation measures proposed by Codelco and SQM were deemed effective, including restricting the flow of sensitive information and regular reporting. Additionally, the governance structure of the joint venture must comply with Chile's Decree No. 211 of 1973, which prohibits relevant personnel from holding concurrent positions or sharing sensitive information between competing enterprises.

[SMM Commentary: SHFE and LME Copper Surge to a New Stage High in the First Week After the Holiday—Can Domestic Macro Tailwinds Continue to Support Copper Prices?] After the holiday, concerns over the potential global trade conflicts triggered by US tariff policies have eased. Although external macro uncertainties remain, multiple domestic and international institutions, influenced by Deepseek, have turned bullish on Chinese assets. Additionally, market expectations for favourable domestic macro policies have boosted confidence in long positions. Coupled with the continued deterioration in the spot market for copper concentrates during the week, copper prices saw a significant rise despite a substantial inventory buildup in domestic copper inventories.

[Cochilco predicts that the global lithium supply surplus will further increase] According to Cochilco, the Chilean National Copper Commission, Chile expects the global lithium supply surplus to further increase by 2025, with Chile producing 275,000 tonnes of lithium in 2024 and 285,000 tonnes in 2025.

Chilean chemical and mining company SQM reported that the due diligence process with the Chilean National Copper Corporation (Codelco) is progressing. Negotiations with Codelco regarding lithium are proceeding smoothly, with both parties auditing assets, operations, and contracts. SQM plans to transfer the mining rights of the Maricunga project to Codelco and integrate it as part of a joint venture.

【SQM: Negotiations with Codelco on lithium mine progressing as normal】On March 22nd, Chilean chemical mining company SQM stated that negotiations with Chilean National Copper Corporation (Codelco) on a lithium mine are progressing as normal, with both parties conducting audits of assets, operations, and contracts. As part of the joint venture, SQM will transfer its rights to the Maricunga gold mine to Codelco, with the transaction not requiring shareholder approval. SQM anticipates a production quota of 225,000 tons/year for the years 2025-2030.

Data released by the Chilean National Copper Commission (Cochilco) showed that Chile's copper production in January was 437,900 mt, a year-on-year increase of 2.9%, according to Mining.com citing Reuters.