Chilean miner Codelco gets access to books of Australia's Lithium Power (updated)

Lithium Power International

28/09/2023 02:12

(Recasts paragraph 1, adds context about Chilean lithium
industry in paragraphs 2-4, and share prices in paragraph 5)
       Sept 28 (Reuters) - Codelco will undertake due diligence
on Australia's Lithium Power International  LPI.AX , the Chilean
copper miner said on Thursday, but added that there is no
certainty the discussions will lead to a definitive deal.
    State-owned Codelco has been tasked to lead the initiative
to kick-start Chile's lithium industry as demand is set to boom
with the uptake of electric vehicles.
    Chile in April had announced plans to nationalize its
lithium industry through a model in which it would hold a
controlling interest in all projects, partnering with mining
firms.
    Lithium Power owns Chile's largest permitted brine project
Maricunga, among other projects in Pilbara, Western Australia
and Argentina.       
    Shares of the Australian lithium developer were up 21.2% at
A$0.32 in early trade. 
        Lithium Power had earlier in the day confirmed that it
had opened its books to Codelco in a statement to Australia's
stock exchange in response to media speculation. 
    Codelco has been looking for lithium deals across the globe,
and is likely to reach an agreement with lithium chemical maker
SQM  SQMA.SN  this year. 

        
       
  
        
  

 (Reporting by Navya Mittal in Bengaluru and Melanie Burton in
Sydney; Editing by Shounak Dasgupta and Sherry Jacob-Phillips)
 ((Navya.Mittal@thomsonreuters.com))