[1/7] On May 5, 2023, Reuters writer Alexander Villegas strolls around the Pujsa salt flat area of Los Flamencos National Reserve in the Antofagasta region of Chile. Ivan Alvarado/RETERS July 20, Atacama Desert, Chile Gabriel Boric, the millennial president of Chile, pledged to mine in a different manner. He will transform the second-biggest lithium miner and the world’s biggest producer of copper into a rural community focused on social and environmental responsibility.
In April, Boric unveiled his audacious plan to establish state control over the country’s lithium trade and expand the extraction of this crucial component of electrical vehicle batteries. He committed to implementing this plan using cutting-edge, environmentally sustainable technology and holding direct discussions with indigenous communities.
Communities living on or near the lithium salt flats in northern Chile, which were once closely clustered under a regional council but are now often at odds, are dubious and will prove more difficult to cooperate with than the federal authorities in far-off Santiago had thought. Some group leaders told Reuters in interviews that they would insist more profits go toward local needs, while others said they would oppose any new lithium mining in whatever form. Francisco Mondaca, a civil engineer and the chairman of the Atacama Indigenous Council’s environmental section, said, “We’re in probably the most arid desert, and to change what we now have in water and vegetation for a lithium battery goes to leave us with nothing.”
“One zone cannot be sacrificed in order to satisfy another.”
90% of the lithium deposits in Chile, the greatest in the world, are found in the Atacama Desert. It is attempting to profit from the surge in demand for battery steel that automakers like Tesla (TSLA.O) and BMW (BMWG.DE), as well as renewable energy companies, are clamoring for. Nonetheless, other countries have recently increased their lithium production more quickly. Currently, the only two companies that collect lithium from Chile’s salt flats are American agency Albemarle (ALB.N) and domestic company SQM (SQMA.SN).
According to Boric’s proposal, mining will be expanded via public-private partnerships run by a recently established state lithium company. The federal government intends to act with Albemarle before its contract expires in 2043, and it has already started trading state management with SQM. Large brine evaporation ponds, which residents and environmentalists claim change the water table and threaten flamingo numbers and other species, are used to collect lithium.
The new strategy aims to use direct lithium extraction (DLE), a technology that ensures increased sustainability by reintroducing brine into the bottom as soon as the mineral is removed. Nonetheless, locals are not persuaded, and DLE is still untested economically. “It disturbs me when a product is purchased as a sustainable solution for the world when it isn’t,” said Mondaca.
INTERNAL PARTIES
The Lickan Antay people have lived on the harsh, rocky Atacama landscape—which NASA uses to mimic Mars—for at least 1,500 years. Their settlements appeared next to a turquoise oasis that was teeming with lithium. One of these, the Tara salt flat, is located inside the Los Flamencos National Reserve and is a biodiverse area covered with ancient arrowheads, pottery, and other archeological remains.
Cristian Espindola, the native Toconao group’s supervisor of security and patrols on the Tara flat, said that he did not see many differences between the current and previous administrations. He criticized the Boric administration for announcing its plan before first contacting the people. “The Chilean government started pushing this lithium without consulting us indigenous people, the people who live here, the owners, the people of Lickan Antay,” Espindola said, labeling the move as “irresponsible” and a continuation of previous reporting.
“The Chilean state’s approach to dealing with indigenous communities has not changed in the slightest,” Espindola said. “They overrun communities once they want to establish new mining operations.” Modern mining amenities, observatories, and tourism centers with dining options and artisan stores may be found in the Atacama; however, many nearby Indigenous communities are only equipped with rough dust roads, incomplete structures, and inadequate infrastructure. “We have energy blackouts now; there is no drinking water or well in Toconao,” Espindola said. “Where are the benefits for the Indigenous community located?”
Atacama Native American villages
According to Espindola, the Atacama Native American villages had a different way of life, were governed by a different set of values, and prioritized preservation of their way of life above interference from the federal government. He said, “I think the conflict will arise there when this lithium coverage collides with Indigenous coverage.” The majority of group members, according to both Espindola and Mondaca, are against further lithium mining in the region.
The mining ministry refused to comment when asked whether the federal government would continue with planned expansion in the event that local communities objected. It was said that it values partnerships with Indigenous groups, which is why Boric had one-on-one meetings with them.
During a news conference held on June 30, after a main meeting with Indigenous leaders, Boric expressed his optimism and said that he had come to the conclusion that “improvement needs to be integral, sustainable, and finished with respect for the surroundings and communities.” The president said that the mining ministry will continue community consultations and that the federal government will address issues like the lack of electricity and water use in the region.
Turning into a STATE Partner
Several Indigenous elders said that they would be willing to support lithium mining if the price was right. The president of Toconao, Yermin Basques, said that he was advocating for the company to get a larger portion of the profits and function as a “strategic companion” inside the state-owned lithium company.
He said, “We own the territory, so we want to have earnings and share earnings as strategic partners.” Basques said that he wants Indigenous communities to be included in the decision-making process and to promote investments in tourism, agriculture, and other projects that may benefit the community even after the lithium rise subsides. Some members of the Atacama Indigenous Council, a coalition of villages formed in 1995, are in favor of the idea, which calls for decisions to be determined by simple majority vote.
Since 2017, Albemarle has contributed 3.5% of its yearly gross sales to the council, which is then equally distributed across the 18 member municipalities. One attorney who assisted in negotiating the agreement, Alonso Barros, said that this has caused conflicts. “There are communities with 3,000 people who receive the same amount of money, and communities with ten people who receive $2 million.”
Federal government
In fact, several towns want to negotiate directly with the federal government, doing away with the council entirely. This is in line with the mannequin SQM used, which hangs specific individuals from the communities nearest to its operating area. Former council president Rolando Humire, who brought the communities together to sign the Albemarle contract, said it took him almost five years to win them over.
“It was a long process that involved years of communication without even specifying the amount we would like to request,” Humire said. He said that communities had come to the realization that they could lawfully postpone activities until their demands were satisfied. “I don’t think the federal government will go to the Atacama and implement what they need,” Humire said. “The communities have the will, the resources, the energy, and the ability to hire attorneys to fight back. A mission that is scheduled for this court docket might be put off for years.
A researcher at the College of Atacama who specializes in mining and Indigenous communities, Mauricio Lorca, said that he anticipates discussions to be “extremely advanced” and that Boric’s proposal validates a dearth of knowledge about the reality on the ground. He said, “What Boric attempted to do, in my opinion, wasn’t a method, but rather wanting to leave everyone completely satisfied.” “And in the end, he left very few people who were entirely satisfied.” Alexander Villegas reported, Adam Jourdan, and Rosalba O’Brien enhanced. The Thomson Reuters Belief Ideas are what we need.
