Chile could fine Albermarle, a miner of lithium in Chile

A view of a brine swimming pool from a lithium mine, Atacama salt-land, Chile, August 16, 2018 REUTERS/Ivan Alvarado

SANTIAGO (Reuters), March 11, 2011 – Chile’s environmental regulator announced Friday that it had filed charges against Albemarle (ALB.N), a major lithium miner, for irregularities in its operation at Salar de Atacama saltflats. This could lead to a $5 million fine.

SMA Environmental Watchdog filed two charges against Albemarle for irregular water extraction from the salt flat. This is where Albemarle and SQM were key to the electric car revolution.

SMA stated that the firm could face fines up to 4 billion pesos ($4.97million) if it exceeds the maximum annual water use allowed in its environmental resolution.

Water use in Atacama has become a significant regulatory issue for lithium mining companies, which use saltwater brine lakes and other water sources to extract the metal.

Chile’s President Gabriel Boric, who was recently inaugurated, has promised to tighten environmental regulations and create a state lithium company. This would increase competition for private mining companies that currently dominate the sector.

($1 = 804.7000 Chilean pesos)

Reporting by Fabin &rs Cambero, Writing and Editing by Carolina Pulice.

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