Chilean state-owned mining company Codelco Chairman Maximo Pacheco said at a public event on Monday that he expects to reach an agreement with lithium miner SQM this year.
The Chilean government announced plans earlier this year to tighten state control over the white metal, allowing only public-private partners to participate in lithium mining.
The South American country has the world's largest lithium reserves.
Pacheco also said he expects the market to maintain confidence in Codelco despite ratings agency Moody's notice last week of a possible downgrade due to declining production, rising costs and mounting financial pressure.
"If credit indicators do not improve significantly over the next 12-18 months, Moody's may downgrade Codelco," the rating agency said.
