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clock Created with Sketch. 29/08/18
05:13
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Originally posted by Skattie11
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SQM made a clear dinstinction in its Q2 earnings call between brine pumping and fresh water usage. Fresh water restrictions affect copper companies far more. SQM only uses 4% in the Atacama. There has been some monitoring related brine pumping restrictions of late but I’m told by an ex Rockwood employee that ALB is more at risk. IMO SQM has greater issues regarding its water use / permitting etc of carbonate plants in Antofagasta. They’re looking to increase capacity 4x in a sensitive area. The other issue facing both SQM and ALB is short changing royalties to Corfo by claiming selling prices below market prices through transfer pricing. One final SQM risk is the allegation that one of the previous economics ministers was bribed to adjust water regulations in their favour, so lots to consider. Read the Tianqi HK listing doc section where they detail risks with the SQM deal, long rap sheet of legal issues.
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Yes SQM were talking about building a decel plant using sea water, SQM also expects the price of Li to fall 10% in this half of the year, reason give was all the Li sold from Australia.
Last edited by
mick z :
29/08/18
