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Lithium in Chile: the State reserve, special operating contracts (CEOL), CCHEN authorisation and what a contract looks like

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Last verified: 2026-10-26 · Status: Changing

Lithium has been reserved to the Chilean State since 1979 and cannot be held under a mining concession. The only exceptions are a few claims recorded before 1979. Private investors work lithium through a special operating contract (CEOL) whose terms the President fixes by supreme decree for each case, signed by the Minister of Mining after a favourable report from the Chilean Copper Commission. Any legal act over extracted lithium or its compounds also needs the authorisation of the Chilean Nuclear Energy Commission. Recent contracts follow the National Lithium Strategy. They run to fixed end dates, have exploration and construction deadlines, and charge payments on margin and sales, including shares for regional governments, municipalities and indigenous communities.

USD figures use the Central Bank exchange rate of CLP 986.58 per US dollar published in the Diario Oficial for 23 October 2026 (CVE 2891564). Contract payments are set in each contract, so the examples show orders of magnitude only.

Key facts

Date from which lithium is reserved to the State	1979-11-14 dateDL Nº 2.886 art. 5, as of 2026-10-26 · in force
CCHEN authorisation required for legal acts over extracted lithium and its compounds	Yes textLey Nº 16.319 art. 8, as of 2026-10-26 · in force
Legal route for private lithium production	Special operating contract (CEOL) by supreme decree textCódigo de Minería art. 8, as of 2026-10-26 · in force
Local development payments in the 2025 Enami Litio CEOL, share of sales	0.4 %Decreto Nº 1 of 2025, Minería, contract art. 8, as of 2026-10-26 · in force

The rule

1. Because the national interest requires it, lithium is reserved to the State from the date DL Nº 2.886 took effect. The only exceptions are lithium in exploitation claims that, at publication, had their survey registered and were in force, with the claim filing registered before 1 January 1979, and claims then in process that are later constituted from a filing registered before that date. A law is to regulate how the State exercises its rights over the reserved lithium.
Cost to do it: No concession route; access is only through the contract route in rule 2 or a pre 1979 claim.Decreto Ley Nº 2.886 of 1979, Art. 5, 1979-11-14 official text · verified 2026-10-26

2. Lithium cannot be the object of a mining concession. Deposits of substances that cannot be held under a concession may be explored and exploited directly by the State or its companies, or through administrative concessions or special operating contracts, with the requirements and conditions the President fixes for each case by supreme decree. The Minister of Mining signs these contracts on behalf of the State after a favourable report of the Council of the Chilean Copper Commission (Cochilco), for metallic and non metallic substances other than hydrocarbons and natural atomic materials. The President may choose the contractor by direct award, private tender or public tender.
Cost to do it: Contract specific payments to the State, fixed in the decree that sets the contract's requirements and conditions.Ley Nº 18.097 and Ley Nº 18.248, Código de Minería; DFL Nº 302 of 1960, Ministerio de Hacienda, Ley Nº 18.097 art. 3 paragraph 4; Código de Minería art. 7 and art. 8; DFL Nº 302 art. 5 letter i), 1983-10-14 official text · verified 2026-10-26

3. Extracted lithium, and its concentrates, derivatives and compounds, may not be the object of any legal act unless it is carried out by the Chilean Nuclear Energy Commission (CCHEN), with it, or with its prior authorisation. If CCHEN grants the authorisation, it sets the conditions at the same time. Unless the grant itself provides otherwise, CCHEN cannot modify or revoke the authorisation and the holder cannot waive it. Lithium is also listed as a material of nuclear interest.
Cost to do it: No statutory fee; sales volumes, prices and conditions are set in the CCHEN authorisation.Ley Nº 16.319, crea la Comisión Chilena de Energía Nuclear, as amended by Decreto Ley Nº 2.886, Art. 2 letter b) and art. 8, 1979-11-14 official text · verified 2026-10-26 · changed: DL Nº 2.886 art. 6, published on 14 November 1979, replaced Ley Nº 16.319 art. 8 to add lithium alongside natural atomic materials.

4. Example of a recent contract (Decreto Nº 1 of 2025, Ministerio de Minería): the State and Enami Litio SpA, a subsidiary of the State company ENAMI, agree a CEOL over the Aguilar, Los Infieles, Grande and La Isla salt flats in Atacama, with commercial activity barred in Los Infieles under the indigenous consultation agreement. The contract runs until 31 December 2060. Exploration and evaluation may last up to nine years, extendable once by three, and effective exploration must start within one year. Construction may last up to five years, extendable once by two. The developer bears all costs, risks, permits and closure under Ley Nº 20.551. It may sell only lithium carbonate or hydroxide, technical or battery grade, unless the Ministry authorises other products, and it sells on CCHEN's terms. It pays the State a margin component and an ad valorem component on sales. 15 percent of the ad valorem goes to sustainable productive development through CORFO. 0.2 percent of quarterly sales goes to the Atacama regional government, 0.1 percent to the Diego de Almagro municipality and 0.1 percent to municipalities with significant impacts. Fixed sums go to the indigenous communities that took part in the consultation.
Cost to do it: Margin and ad valorem payments under the contract tables, local development payments of 0.4 percent of sales, and indigenous community payments.
Example: On lithium sales of CLP 98,658 million in a quarter, local development payments are CLP 197.3 million to the regional government, CLP 98.7 million to Diego de Almagro and CLP 98.7 million to impacted municipalities. / On US$100 million of quarterly sales: US$200,000 to the regional government, US$100,000 to Diego de Almagro and US$100,000 to impacted municipalities, US$400,000 in total.Decreto Nº 1 of 2025, Ministerio de Minería, fija requisitos y condiciones del contrato especial de operación de litio con Enami Litio SpA, Sole article; contract art. 1 to 9, 2025-08-13 official text · verified 2026-10-26

5. Because a CEOL is an administrative contract that may directly affect indigenous peoples, the Ministry of Mining runs an indigenous consultation before granting it. For the Enami Litio contract the consultation ran from March to December 2024 and was closed by Resolución Exenta Nº 19 of 10 January 2025 of the Undersecretariat of Mining.
Cost to do it: Time: the Enami Litio contract took from the August 2022 request to the August 2025 decree, including a consultation of about ten months.Decreto Nº 1 of 2025, Ministerio de Minería (recitals 21 to 25); Decreto Nº 236 of 2008, Ministerio de Relaciones Exteriores, ILO Convention 169, Recitals 21 to 25; ILO Convention 169 art. 6, 2025-08-13 official text · verified 2026-10-26

Item	Term or rate
Contract end	31 December 2060
Start of effective exploration	Within 1 year
Exploration and evaluation phase	Up to 9 years, one extension of up to 3
Construction phase	Up to 5 years, one extension of up to 2
Products allowed	Lithium carbonate or hydroxide, technical or battery grade, unless the Ministry authorises others
Payments to the State	Margin component plus ad valorem component on sales, net of the items below
Sustainable productive development	15% of the ad valorem component, allocated through CORFO
Regional government of Atacama	0.2% of quarterly sales
Municipality of Diego de Almagro	0.1% of quarterly sales
Municipalities with significant impacts	0.1% of quarterly sales

Phases and payments in the 2025 Enami Litio CEOL (Decreto Nº 1 of 2025, Ministerio de Minería, contract art. 4 to 9)

Worked example

An investor that wants to produce lithium in a salt flat cannot file a mining concession. It must partner with or apply to the State for a CEOL, whose terms are fixed by supreme decree after a Cochilco report, and then obtain environmental approval and CCHEN authorisation for sales (Código de Minería art. 8; Ley Nº 16.319 art. 8).
Under a contract modelled on the 2025 Enami Litio CEOL, quarterly sales of US$100 million (CLP 98,658 million) trigger US$400,000 of local development payments (CLP 394.6 million), on top of the margin and ad valorem payments to the State (Decreto Nº 1 of 2025, contract art. 6 and 8).
Cross border projects in salt flats near Argentina still follow the Chilean contract and CCHEN regime on the Chilean side; Argentina's lithium regime is different, so treat each side separately (see https://theargentinethread.com/guide/).

Step by step

1. Confirm whether the target area has pre 1979 claims covered by the DL Nº 2.886 art. 5 exceptions; otherwise only the contract route is open.
2. Approach the Ministry of Mining and the State companies designated under the National Lithium Strategy (CODELCO and ENAMI) on partnership options, or apply for a CEOL; the President decides the selection method (Decreto Nº 1 of 2025, recitals 15 and 26).
3. Expect an indigenous consultation before the decree, and plan for its duration (recitals 21 to 25).
4. Once the decree fixing requirements and conditions is published, sign the contract with the Ministry and track the exploration, construction and RCA deadlines.
5. Apply to CCHEN for authorisation of sales and other acts over extracted lithium and set up traceability and payment reporting (Ley Nº 16.319 art. 8; contract art. 12 and 14).

Common traps

Buying 'lithium claims' without checking the pre 1979 exception: claims over lithium created later give no right to lithium (DL Nº 2.886 art. 5; Código de Minería art. 7).
Selling lithium compounds without CCHEN authorisation: legal acts over them are not allowed without it (Ley Nº 16.319 art. 8).
Assuming the general mining royalty is the only take: CEOL payments are contract specific and come on top of income tax (Decreto Nº 1 of 2025, contract art. 6 to 9).
Planning value added products beyond carbonate or hydroxide without Ministry approval: the 2025 contract limits products and requires negotiation of the ad valorem for others (contract art. 2).
Missing phase deadlines: exploration, construction and RCA timetables are contractual and can lead to early termination (contract art. 5).

Sources

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