FNE gives green light to the alliance between Enami and Rio Tinto to exploit lithium in the Atacama Region

The National Economic Prosecutor's Office (FNE) has approved the public-private partnership between the state-owned Empresa Nacional de Minería (Enami) and Anglo-Australian mining giant Rio Tinto Chile Tres SpA (Rio Tinto) to develop lithium extraction operations in the Atacama Region. The approval was granted without conditions, following more than a month of investigation into the proposed alliance. This marks the culmination of a process initiated on April 17, during which the FNE raised concerns over incomplete notification procedures. After further review, the agency began its formal investigation on June 2, ultimately concluding that the operation would not significantly reduce competition in the lithium or copper industries. The joint venture aims to develop the Salares Altoandinos lithium project, located in the Atacama Region. According to information released earlier this year, the initiative involves the exploitation of lithium within the mineral-rich salt flats of Aguilar, Los Infieles, Grande, and La Isla. These areas are known for their high concentrations of lithium deposits, making them strategically valuable for battery production and other industrial applications. The FNE’s assessment concluded that the operation does not alter existing structural conditions in the lithium or copper markets, nor does it pose substantial risks of coordination among industry players. Under the agreement, Enami will hold an initial 49% stake in the project, while Rio Tinto will contribute the remaining 51%. The board of directors for the project will consist of three representatives from Rio Tinto and two from Enami, reflecting the balance of interests between the private and public sectors. The structure underscores the collaborative nature of the partnership, with both entities bringing distinct strengths, Enami’s regulatory access and local expertise, and Rio Tinto’s global market experience and technical capabilities. The FNE’s decision followed a thorough evaluation of competitive conditions in the lithium and copper industries. Officials stated that they identified the existing market dynamics and determined that the new association would not create undue influence or distort market behavior. The agency noted that structural relationships among key players in the lithium sector were already well-established, and the proposed operation did not introduce new elements that could lead to coordinated action or reduced competition. The approval process faced delays due to incomplete documentation initially submitted by the companies. Following these concerns, the FNE requested additional information, leading to a revised submission and subsequent investigation. The agency emphasized that all findings and reports related to the approval will be made publicly available on its website once finalized. This transparency aligns with broader efforts to ensure accountability and clarity in major economic decisions involving state resources. The move comes amid growing demand for lithium, driven by the expansion of electric vehicle manufacturing and renewable energy storage solutions. Chile, particularly the Atacama Region, has emerged as a critical player in the global lithium supply chain, with its vast reserves and favorable geological conditions. The collaboration between Enami and Rio Tinto represents a strategic effort to consolidate Chile’s position in this rapidly evolving market.