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No to the sell-off of Chile’s ‘white gold’

Hugo Guzman speaks to Communist Party MP DANIEL NUNEZ about the scandalous attempt by Sebastian Pinera’s outgoing government to flog off Chile’s lithium deposits on the cheap

“EVERYTHING that has surrounded this tender, which was launched three months ago by the government, is truly scandalous and shameful,” communist MP Daniel Nunez says, adding that “decisions of this magnitude, which have so many consequences for the country, should not to be taken by an outgoing government, but by the incoming government and in a transparent manner.” 

These are the issues that slip through the cracks for the majority of citizens, but they are of strategic importance for the present and future of the country.

The Pinera government called for a national and international tender for the mining of lithium, starting on October 13, giving January 14 as the date for final decisions on the allocation of mining licences. 

Nunez says that the process “should be suspended” immediately.

President-elect Gabriel Boric’s spokesperson said that “it would seem prudent to us that the whole process of awarding lithium [licences] can be postponed for a proper analysis.”

Nunez believes there is an urgent need to co-ordinate president-elect Boric’s advisers’ responses with workers’ organisations to propose a coherent strategy and organise actions for the defence of lithium as Chile’s national asset.

The tender was questioned from the moment it was made public because its essence is to increase the volume of lithium extraction which will accelerate the process of privatisation and denationalisation of this mineral, which is of strategic importance for Chile. 

Ecologists also point out that such large-scale mining will exacerbate the environmental crisis already facing the salt flats of (Salar de) Atacama, the largest salt flat in the country, and also the Salar de Maricunga, leading to environmental collapse.

This kind of policy is the reverse of what should be done, claims Nunez. Chile must move towards a much more selective industrial approach in terms of lithium and preferably delivered by a state-owned company. 

Such an integrated approach would allow the country additional connectivity: battery development for electric cars, renewable energy accumulators, etc.

All in all, a more controlled and limited exploitation would result in a greater positive impact on the country, with the creation of high-quality jobs, Nunez believes. 

The neoliberal “extractivist” model is causing an environmental disaster and leaves very few benefits for Chile and its people.

A new Chilean “magna carta” that is being drafted at this very moment will address the issues of the exploitation of the country’s natural resources and will change the present inadequate constitutional protections that permit the current poorly supervised transnational free-for-all — hence Pinera’s shameful haste.

“We need to have a national dialogue on this and the best policy options when the project of the new constitution goes before the nation,” says Nunez. 

“I am in favour of not holding this type of tendering process that hands over the exploitation of resources as important as lithium to private capital, especially transnationals, until there is a new constitution.”

Nunez argues that Pinera’s government and the large consortiums already in situ extracting salt want to prevent competing companies and especially the state from participating. 

In his opinion only a planned and sustainable exploitation will benefit the country and secure technological development.

Meanwhile the copper miners’ union issued a statement saying: “The state must control the exploitation of lithium in Chile, promoting and reinforcing a medium-term strategy to install in Chilean society the need to industrialise our country, together with an immediate end of the leasing contracts of companies that since the military dictatorship and for decades have enjoyed extraordinary profits.

“Therefore, the state can and should take charge of the exploitation and commercialisation of this strategic natural resource, exploiting its own holdings and the best deposits of this mineral that are currently owned by the state.”

In this context, it was announced that the Minister of Mining, Juan Carlos Jobet, would hold a meeting with members of Boric’s team to explain the tender, an opportunity for the positions of the next government to be made clear.

At the same time demonstrations across the width and length of Chile will be held in defence of Chilean lithium and against Pinera’s tender by bringing it to wider attention of society.

Hugo Guzman is editor-in-chief of El Siglo newspaper of the Communist Party of Chile.

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