Chile’s antitrust agency, the National Economic Prosecutor’s Office (FNE), has granted unconditional approval for a public-private joint venture between state mining giant Codelco and global mining group Rio Tinto. The partnership aims to explore, produce, and commercialize lithium carbonate sourced from the Salar de Maricunga, located in the Atacama Region.
Under the terms of the transaction, Rio Tinto will acquire a 49.9% stake in SDM, a subsidiary previously wholly owned by Codelco. SDM holds key mining concessions and operational permits required to explore and extract lithium within the salt flat, which will be contributed toward the joint enterprise’s development.
Following its review, the FNE determined that the transaction would not lead to a substantial reduction in market competition. The authority observed that potential horizontal and vertical overlaps in the lithium carbonate supply chain between the joint venture and its parent companies do not push market concentration past critical regulatory thresholds outlined in Chile’s horizontal merger guidelines.
Furthermore, the agency assessed the potential for coordinated horizontal effects and concluded that the deal would not significantly alter the overall structure of the global or domestic lithium market. The assessment also factored in pre-existing mitigation commitments implemented during previous Codelco transactions, which restrict the exchange of sensitive commercial information, particularly regarding other major industry participants.
Codelco primarily focuses on copper extraction globally, but maintains a footprint in non-metallic lithium mining through a separate joint venture in the Salar de Atacama. Meanwhile, Rio Tinto operates internationally across diverse mineral sectors, with active investments in both copper and lithium projects in Chile.
The approval allows the two mining firms to move forward with developing one of Chile’s major lithium reserves without structural remedies. The full public versions of the FNE’s technical report and official approval resolution will be made available on the regulator’s portal.
