Reply from the Ministry of Mining (in Spanish). 

In 1979, lithium was declared of national interest in Chile. Since then, only the State of Chile can manage lithium production, which maintains the status of lithium as a strategic mineral. On October 13, 2021, the Government of Chile (through the Ministry of Mining) published a call for applications to increase lithium production. This call intends to facilitate the entry of national and foreign companies in the lithium market, promoting production and supporting the development of new technologies that enable the energy transition and the fight against global warming. Lithium is a key element of the energy transition given the increased demand for rechargeable lithium-ion batteries for supplying the power and transport sectors with renewable energy. The call seeks encompass exploration, exploitation, and commercialization of a total of 400,000 tons of marketable metallic lithium, divided into 5 quotas of 80,000 tons each. 

On January 10, 2022, the regional government of Atacama brought a case against the Ministry of Mining. The complaint questions the bidding process of the lithium production application, which the regional government argues was carried out without public participation and in the absence of any assessment of the activity’s potential environmental impacts on the region. The regional government argues that the project will be developed in the Atacama Salt Flats, representing a threat to its biodiversity. Atacama also points out that the project might destroy wetlands, the availability of water, which is already scarce in the area, and the destruction of cultural heritage, as it is a sector of high touristic interest. While the regional government recognizes that the call for lithium bidding responds to international pressure to guarantee an energy transition, it highlights the preliminary step to assess the impacts of the increased lithium mining. The regional authority requests that the contracts are deemed null or, in the alternative, to restart the bidding process and ensure that the regional government is properly consulted. 

The Ministry of Mining argued that the bids have already been awarded to two companies and that the existing contracts refer to the exploration and exploitation of lithium. A constitutional action would not be pertinent at this stage. In the defendants’ view, the Court should analyze the alleged arbitrariness or illegality of the act at a later stage, once the act of granting the concessions has been completed. The Ministry of Mining further noted that it is up to the successful bidder to obtain the different  permits required for the operation of the lithium plant, for example environmental, water and administrative permits. 

On January 14, 2022, the Court of Appeals of Copiapo granted the plaintiff’s preliminary request and suspended the contracts while the writ of protection is pending.

On July 8, 2022, the petitioners decided to withdraw the action filed, citing the resolutions made in cases No. 99-2022 and No. 8507-2022 by the Supreme Court. The Court's rulings effectively addressed the alleged constitutional violations by annulling the bidding terms of the lithium process and revoking the awarded contracts, previously granted to the companies.


Regional Government of Atacama v Ministry of Mining and Other

<p>This entry was provided by the Sabin Center for Climate Change Law. Please see the terms of use for citation and licensing of third party data.</p>

Regional Government of Atacama v Ministry of Mining and Other - petition

Filed

Chile

The Climate Litigation Database

Find climate change litigation data and indicators for {text}.

{text} litigation

Sabin Center for Climate Change Law provides Climate Litigation Database, a comprehensive database of US and Global climate change caselaw

Quickly and easily search through the complete text of thousands of climate change law and policy documents from every country.

Search the Climate Litigation Database

An aim to achieve a quantifiable outcome within a given time-frame, set by an institution such as a national government.

Policy instruments are techniques or tools used by governing authorities to promote certain policies in order to achieve predetermined goals. Put simply, instruments are how a government tries to achieve its goals, with this taxonomy being focused on national policy instruments.

Risk is the potential for adverse consequences resulting from the dynamic interplay between (climate-related) hazards, exposure, and vulnerability of affected human or ecological systems.

Groups  of people who are adversely affected by climate change or the response to it

A set of principles, processes, and practices that build economic and political power to shift from an extractive economy to a regenerative economy.

Justice is the ethical and political framework that addresses fairness, including issues of responsibility, rights, and structural inequity.

Renewable energy means all forms of energy produced from renewable sources in a sustainable manner.

Fossil fuel is a generic term for non-renewable energy sources such as coal, fossil gas, and oil (including crude oil, and petroleum products), that can be used for electricity and heat generation. Fossil fuels are hydrocarbons formed from pressurised and heated organic material buried over millions of years.

Molecules in the atmosphere that play a key role in the greenhouse effect by trapping heat radiating from Earth’s surface.

Area of the economy in which actors engage in identical or related activities.

In human systems, the process of adjustment to actual or expected climate change and its effects, in order to moderate harm, increase resilience or exploit beneficial opportunities. In natural systems, the process of adjustment to actual climate change and its effects; human intervention may facilitate adjustment to expected climate change and its effects.

The management and allocation of funds, assets and investments to meet various objectives

A loan is a policy instrument where funds are provided to a borrower with the expectation of repaying the principal plus interest.

Zoning and spatial planning are both methods for guiding the distribution of people and activities in a space, and are regulatory restriction.

Either money or something of monetary value is transferred between two or more organisations, people or countries.

Social protection systems consist of policies that help people manage social risks in order to prevent poverty and maintain decent incomes and living standards

Social inclusion is the process of improving the terms on which individuals and groups take part in society—improving the ability, opportunity, and dignity of those disadvantaged on the basis of their identity.

Oil is a combustible liquid fossil fuel composed mainly of hydrocarbons, occurring as crude oil and refined into petroleum products such as petrol, diesel and kerosene.

Fossil gas, commonly known as natural gas, is a fossil fuel consisting chiefly of methane with smaller amounts of other hydrocarbons and trace gases, found in underground deposits.

Coal is a combustible sedimentary rock formed from carbonised plant matter, rich in carbon and hydrocarbons, and occurring in several main types including hard coal and brown coal.

People with different national or cultural traditions from the dominant population

Social and cultural groups that share collective ancestral ties to the lands and natural resources where they live, occupy or from which they have been displaced

Jobs that contribute to preserving or restoring the environment. We include jobs which require a high amount of green skills or which spend much of their time on green activities, as well as jobs transforming polluting industries.

Activities of industries that extract natural resources, such as mining, oil, and gas, for commercial use.

The activities of industries that transforms raw materials into finished goods through industrial processes.

The activities of industries involved in the production, distribution, and sale of energy, including electricity, gas, and renewables.

This sector involves managing waste treatment, sanitation, pollution control and environmental cleanup.

Activities that involve planning, designing and building infrastructure, residential, and commercial structures.

This sector involves activities to move goods and people, alongside the storage of products.

Activities that provide lodging, food, and entertainment services to guests, including hotels, restaurants, and resorts.

This sector involves activities that impart knowledge and skills to individuals, including formal schooling, vocational training and educational support.

Activities of government agencies and institutions that provide public services, enforce laws and manage public resources.

This sector includes firms and individuals offering specialised expertise in fields such as law, accounting, consulting, science and engineering.

Activities involving the management, development, and sale of property assets.

Regional Government of Atacama v Ministry of Mining and Other - petition

Policy instrument

Impacted group

Just transition

Renewable energy

Fossil fuel

Economic sector

Finance