Chile files arbitration suit against Albemarle over lithium royalties
2021-02-23 09:01:20 [Print]
Chile has launched an arbitration process against U.S.-based miner Albemarle, the world's largest lithium producer, for allegedly underpaying royalties on its sales, the head of the state development office revealed last Sunday.
Pablo Terrazas, head of Corfo which handles the lithium contracts, disclosed that the office had filed the request last Friday with the International Chamber of Commerce, demanding around $15 million extra in payments for 2020.
Albemarle has major lithium projects in Chile's huge Atacama salt flats, which hold one of the world's largest deposits of lithium, an ultra-light metal needed for batteries powering the shift towards electric vehicles.
Terrazas said that the method of calculating the commission Albemarle paid to Chile was incorrectly used last year, which meant it had paid around $44 million, short of what he said should have been around $60 million.
In November, Corfo had advised legislators that it was preparing litigation against Albemarle.
In 2018, Corfo and Albemarle faced a similar conflict, though eventually reached an agreement without formally reaching arbitration.
Pablo Terrazas, head of Corfo which handles the lithium contracts, disclosed that the office had filed the request last Friday with the International Chamber of Commerce, demanding around $15 million extra in payments for 2020.
Albemarle has major lithium projects in Chile's huge Atacama salt flats, which hold one of the world's largest deposits of lithium, an ultra-light metal needed for batteries powering the shift towards electric vehicles.
Terrazas said that the method of calculating the commission Albemarle paid to Chile was incorrectly used last year, which meant it had paid around $44 million, short of what he said should have been around $60 million.
In November, Corfo had advised legislators that it was preparing litigation against Albemarle.
In 2018, Corfo and Albemarle faced a similar conflict, though eventually reached an agreement without formally reaching arbitration.
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