SANTIAGO (Reuters) – Chile’s environmental regulator said on Friday it had filed charges against major lithium miner Albemarle for irregularities in its operation in Salar de Atacama salt flats, which could result in a $5 million fine.
The SMA environmental watchdog filed two charges against the company for irregular water extraction on the salt flat, where Albemarle and rival SQM spearhead extraction of ultra-light battery metal lithium, key for the electric car revolution.
“The firm risks fines of up to 4 billion pesos ($4.97 million) after exceeding the limit of the average annual water used authorized in its environmental resolution,” SMA said.
Water use in the Atacama has become an important regulatory issue for the lithium mining firms, who use saltwater brine lakes to extract the metal.
Chile’s newly inaugurated President Gabriel Boric has pledged to toughen environmental regulation as well as creating a state lithium company, which would increase competition for the private mining companies who now dominate the sector.
($1 = 804.7000 Chilean pesos)
(Reporting by Fabián Andrés Cambero, Writing by Carolina Pulice; Editing by David Gregorio)
