2024-03-11 22:55:12
He president of the board of directors of Codelco, Máximo Pachecoattended a new new session of the Senate Mining and Energy Commissionwhere he gave more details about the agreement between the state mining company and SQMregarding the exploitation of lithium in the Salar de Atacama.
As stated by Once upon a timethe executive first expressed how the surprise of some sectors caught their attention after the memorandum of understanding between both companies was confirmed.
“Perhaps they believed that this understanding was unfeasible in such a short time, especially when it involves a state company. It was not so“Pacheco said.
Pacheco and optimism due to Codelco’s agreement with SQM
Regarding the memorandum itself, he explained that it is an instrument where the bases are agreedto then discuss the aspects that will form part of the definitive documents.
“This memorandum does not establish enforceable obligations for the parties, and any of them may end the negotiations (…) we do not conclude any contract, only certain principles of the agreement,” he explained, as quoted by Emol.
Now, the copper miner would be participating in the due diligence (external audit to know the status of a company, within the framework of an investment or an acquisition process, among others). Therefore, expect to sign the definitive agreement “in the near future.”
Such an agreement would stipulate the objectives and purposes of the association, tasks, work calendars, rights and obligations, among various aspects.
Furthermore, “the parties have proposed that after going through the consultations and requirements imposed by law, the process ends in December 2024“.
Shareholders and lithium price
Regarding the reaction of the shareholders Regarding the agreement with SQM, Pacheco stated that some “have liked it more or less, but we as Codelco have had the company as counterparty, not the shareholders.”
“I have been appointed by the board of directors of Codelco to negotiate with SQM, and SQM, through the president of its board of directors, informed me that the counterparty was the general manager of the company, Ricardo Ramos, therefore I listened to their internal problems, but also I note that the memorandum of understanding was approved unanimously by the directors“, he commented according to Emol.
The president of the Codelco board of directors was also consulted about the decrease in the price of lithium. Although he acknowledged this decline, and mentioned that “it is something that happens in commodities,” he emphasized the long-term view of the project.
“When one gets into this type of investment projects that are of long term“What companies generally do, based on expectations, forecasts and opinions of different analysts, is to look at the long-term price,” he concluded.
And although, as mentioned, he recognized the drop in the price of the mineral and an “extraordinary volatility” in the last year, the indicators would show that the long-term price has not changed, according to Pacheco.
“We are on time. As a country, we have been the second largest lithium producer in the world. “We are a very important player in that market,” he added.
1710211696
#Máximo #Pacheco #points #Codelcos #final #agreement #SQM #sealed #future