The exploitation of lithium by Albemarle is authorized by exploitation rights granted through an agreement signed with the Corporation for the Promotion of Production (CORFO), in application of Article 19 No. 24 of the Political Constitution and the Constitutional Organic Law of Mining Concessions.
From the perspective of environmental regulations, Albemarle must comply with the Law on the General Bases of the Environment (Law No. 19,300) and, in particular, with the obligation to have an environmental assessment of its operation. Law No. 19,300 requires all owners of mining development projects to enter the Environmental Impact Assessment System ("SEIA") prior to their execution. In compliance with this, Albemarle has several environmental authorizations obtained in recent decades that sustain its mining operation from the Salar de Atacama, and processing in its Plant located in the La Negra sector, Antofagasta commune.
For its part, the water supply is covered by rights of use in accordance with the provisions of the Water Code and whose exercise is authorized from an environmental perspective by the flows indicated in RCA No. 21 of 2016 and RCA No. 279 of 2017. Albemarle is also the holder of mining exploitation and exploration concessions constituted in accordance with the provisions of the Mining Code, as well as other titles that protect the occupation of the areas required by the project and its activities.
Albemarle also has a series of other permits and sectoral authorizations granted by various public services, such as the SEREMI of Health, the General Directorate of Waters, the National Geology and Mining Service ("SERNAGEOMIN"), among others. These permits and authorizations cover various Albemarle facilities and activities, such as the sale of lithium products (authorized by the Chilean Nuclear Energy Commission), the mine closure plan (authorized by SERNAGEOMIN), hydraulic works (authorized by the DGA), etc.
The urban planning regulations (the General Law of Urban Planning and Construction and the General Ordinance of Urban Planning and Construction) must also be complied with by Albemarle. In this sense, our company has processed various applicable urban planning permits such as building permits, final receptions, among others. The location of our facilities and activities is in accordance with current urban planning.
The company also respects all applicable health regulations. For this reason, our facilities have the permits established in the Sanitary Code and in the rest of the sanitary legislation, such as permits for waste handling and disposal facilities, among others.
In labor matters and in the protection of the rights of its own workers and contractors, Albemarle must comply with the provisions of the Labor Code and associated regulations, among which are, in others, the following: Law No. 20,123 that regulates work under subcontracting, operation of temporary service companies and the employment contract of temporary services; Law No. 16,744 that establishes rules on occupational accidents and diseases; DS No. 594 Regulation on the Prevention of Occupational Risks; DS No. 40 Regulations on basic sanitary and environmental conditions in workplaces; DS No. 76 Regulations for the application of Article 66 Bis of Law 16,744 on the management of occupational safety and health in works, tasks, or services indicated, as well as all applicable administrative regulations issued by the competent authorities (Labor Directorate).
Finally, Albemarle also complies with all the regulations applicable to civil and commercial contracts entered into with third parties and, in particular, with its suppliers. In particular, our company not only complies with the general regulations (Civil Code and Commercial Code) but also especially respects the payment of invoices within thirty days, as mandated by Law No. 21,131.