Government to grant concessions for Lithium operations at the end of September
13-06-2012 La Tercera – Noticias
Pablo Wagner, Assistant Secretary to Mining Ministry, has reiterated that contractor will receive a monthly reward equivalent to gross sales less the specific payment to be made to the State which amounts to 7% of monthly gross sales
Pablo Wagner, Assistant Secretary to Mining Ministry, stated that awarding of national and international public call for bids for Lithium Operation Special Contracts (CEOL for its acronym in Spanish) will be made in September 24.
In that opportunity he reiterated that contractor will receive a monthly reward equivalent to gross sales less the specific payment to be made to the State which amounting to 7% of monthly gross sales that will allow the Treasury to receive 50% of earnings generated.
“Nowadays we are claiming 7% of sales which is approximately equivalent to 28% of earnings plus possible 20% of the revenue we will get and other taxes, which all added up is about 50% of company earnings for tax load, i.e. what the State is receiving whether by royalty or revenue taxes concept”, he explained.
Likewise the officer mentioned that the State is expected to receive about US$350 million for each project during the contract operation period that will have 20-year duration.
Wagner also said that boosting process will start next week with presentations to investors in U.S.A., Canada, England, and Chile.
He indicated that time to obtain bid bases and submit inquiries will finish next July 31 and base value for exploitation right will be $2,500 million.
He also added that queries will be answered from August 1-20, while offers submittal may be made until September 12.
Results of administrative requirements will be delivered on September 20 in order to complete the process with the awarding being granted on the 24th of September.
