Quiborax Obtains CEOL Conditions from Chilean Ministry of Mining for Lithium Recovery from Historical Waste Rock at Arica Plant

en.Wedoany.com Reported - The Chilean Ministry of Mining has determined the specific conditions for signing a Special Lithium Operation Contract (CEOL) with the state-owned mining company Quiborax S.A., allowing it to recover lithium resources from historical mining waste rock at the El Águila plant in the Arica and Parinacota Region.

The contract is exclusively for processing historically accumulated waste rock at the El Águila plant and does not permit the processing of new waste generated after the contract takes effect. According to the Ministry of Mining's assessment, the lithium resource potential in this waste rock is approximately 19,775 tonnes of lithium carbonate equivalent. The contract is valid until the processing and sale of 20,000 tonnes of lithium carbonate equivalent is reached, or until December 31, 2046, whichever occurs first.

The project is divided into four phases: an evaluation phase of up to two years (extendable by one year), a construction phase of up to three years (extendable), a processing and beneficiation phase, and a project closure phase. Quiborax is required to determine effective reserves, economic and technical feasibility during the evaluation phase, and complete environmental and industry permit approvals.

Financial data reviewed by the Ministry of Mining shows that Quiborax's net assets were US$112 million in 2023 and US$114 million in 2024, with a two-year average net asset value of US$113 million and an average debt-to-asset ratio of only 0.18. The authorities believe the company's financial position is sufficient to cover the project risks.

The contract also stipulates a progressive royalty, with a maximum rate of up to 50% based on international lithium prices and sales volumes. It also requires the gradual adoption of clean energy, reduction of freshwater use, and the introduction of selective technologies such as direct lithium extraction to improve recovery rates and production efficiency. The Ministry of Mining stated that the special CEOL for the El Águila plant applies to secondary materials or derivatives containing lithium, representing an exceptional mechanism within the National Lithium Strategy.

The Ministry of Mining pointed out that the core of this project is circular economy and resource recovery, differing from traditional salt flat extraction by focusing on converting existing mining waste into value. This decree marks the official implementation of the regulatory pathway for recovering lithium from historical waste rock under the framework of the National Lithium Strategy.

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