ALBEMARLE REQUESTS REVIEW OF ENVIRONMENTAL PERMITS IN THE ATACAMA SALT FLATS *

By Leonardo Cárdenas

June 21, 2024

The American company Albemarle asked the Environmental Assessment Service for a review of the Environmental Qualification Resolutions of its operations and those of SQM in the field, citing significant environmental impacts and the need for additional studies on the interaction between brine extraction and the behavior of the aquifer, as well as the use of advanced technologies to monitor and mitigate the effects of climate change.

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Albemarle’s Environmental Manager, Ignacio Toro, requested the director of the Environmental Evaluation Service (SEA, for its acronym in Spanish) to review the Environmental Qualification Resolutions (RCA, for its acronym in Spanish) of the operations of both SQM and Albemarle itself in the Atacama salt flat, the largest lithium brine deposit in the world.

In its presentation, to which Pulso had access, the American company requested to review RCA No. 21/2016, related to the project “Modifications and improvement of the solar evaporation pond system in the Atacama salt flat”, of Albemarle, and RCA No. 226/2006, linked to the project “Changes and improvements in the mining operation in the Atacama salt flat”, of SQM Salar.

The petition is based on an article of Law 19,300 and the Regulation of the Environmental Impact Assessment System, which allow the review of an RCA when the evaluated variables have changed substantially or have not been verified, affecting the objects of environmental protection.

Both companies operate in the Atacama salt flat, extracting brine to produce lithium carbonate. Albemarle has increased its production capacity since 1984 and has submitted its projects to the Environmental Impact Assessment System (SEIA, for its acronym in Spanish), obtaining various environmental permits. Likewise, SQM has been the subject of contracts and environmental evaluations that allow its operation in the area.

In the document, Albemarle maintained that the historical extractive activity of brine from the core of the salt flat was one of the main causes of the variation in the aquifer. It also highlighted a significant discrepancy with SQM’s initial projections in the project approved by the RCA in 2006. These findings established that SQM activities had a greater impact on brine decreases, presenting a synchronous relationship with the decrease of fresh-brackish water in the aquifer, the presentation says.

The document highlighted that, compared to Albemarle’s operations, SQM’s activities had a greater impact on the decreases in brine and water levels in the Atacama Salar aquifer. The hydrogeological model presented by SQM in its recent Environmental Impact Study (EIA) confirmed that its contribution to the decrease in levels in the core of the salt flat and Peine was greater than that of Albemarle, the text says. This situation justifies the need to review the RCAs of both companies to adopt appropriate corrective measures, he adds.

“SQM’s own Monitoring Plan shows that it would not be verified that brine extraction would generate a null or insignificant impact on the levels of the fresh brackish aquifer in the area adjacent to the lagoons, as established in the environmental evaluation,” he noted.

The decline observed in the aquifer that has motivated the activation of the Albemarle Early Warning Plan originates in various causes, including historical brine extractions by SQM,” he added.

Climate change

Albemarle suggested a coordinated review of both companies’ operations in the Atacama salt flat due to their interrelationship and joint environmental impact. The company proposed a comprehensive approach that includes studies on the interaction between extraction activities and aquifer behavior, as well as the implementation of a monitoring and early warning system to identify and mitigate any adverse environmental impacts.

The company highlighted the need to comprehensively address the problems observed In the aquifer. Among its proposals, it includes carrying out detailed analyzes on the behavior of other lagoon systems in the area, such as the Peine, Aguas de Quelana, and Soncor systems, to identify common patterns and differentiate them from those specific to each system.

Albemarle also proposed investigating how climate change has influenced and will continue to influence the patterns of environmental variables in the Atacama Salt Flats. It suggested developing a methodology to evaluate the recharge of the salt flat, analyzing the level of brine in the core and its relationship with the historical records of precipitation and flows in the rivers of the basin.

Additionally, the company recommended the use of advanced remote sensing technologies to monitor surface soil moisture throughout the marginal zone of the Atacama salt flat, including the La Punta-La Brava, Peine, Soncor, and Quelana lagoon systems. This technology would allow changes in the marginal zone to be identified more accurately and in real-time, it said.

It also proposed the construction of new wells to measure the depth of the brine in intermediate zones between the lagoon systems and the existing wells.

Tianqi evaluates actions based on CMF ruling

Tianqi Lithium announced yesterday that its legal teams are exhaustively analyzing the resolution of the Financial Market Commission (CMF, for its acronym in Spanish) that rejected the request of the Asian group, owner of 22% of SQM, to subject the SQM and Codelco alliance to a vote at a shareholders’ meeting.

The firm announced that “it is evaluating all possible legal actions that may apply and will take all pertinent measures under the law, to assert its rights and interests as a shareholder of SQM.” And they anticipated: “From now on, we find it necessary to express our deep concern in this regard, especially concerning the incorrect interpretation of the Corporations Law.”

Protection resource against SQM-Codelco

The Atacama community of Coyo presented an appeal for protection before the Court of Appeals of Antofagasta against the Codelco-SQM agreement. Through a statement, the group said that it seeks to “protect their rights by highlighting the series of irregularities and illegalities behind the agreement” and requested “the holding of an indigenous consultation.”

“Codelco is not legally authorized to reach the agreement it has signed,” said lawyer Gabriel Mu?oz.

Follow-up

SQM Lithium Division explained that they are not aware of the request submitted by Albemarle.

They also noted that the company “executes the most extensive environmental monitoring plan in the Salar de Atacama, previously programmed and supervised by the Atacama communities, and whose results are published on its publicly accessible electronic platform sqmsenlinea.com. Likewise, it has updated studies and models, validated by the authority, which are permanently reviewed. These antecedents do not provide evidence that would allow us to affirm that there is a significant deviation from the situation originally evaluated.”

“Since 2020, SQM has implemented sustained reductions in its brine and water extractions in the Salar de Atacama, being the only actor in the basin that, together with effective reductions in pumping that contribute to a greater water balance in the basin, has managed to sustainably increase its production of lithium carbonate, maintaining its leadership position worldwide,” the company concluded.

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*? This is the translated text of an article originally published in Spanish by Leonardo Cárdenas with the title: “Albemarle asks to review environmental permits in the Salar de Atacama” in La Tercera, one of the main newspapers in Chile: https://www.latercera.com/earlyaccess/noticia/albemarle-acusa-cambios-en-el-salar-de-atacama-y-pide-revisar-permisos-ambientales/V6PK6OCUQJDVFITZ5NKEP55FFI/#).