CleanTech Lithium PLC (AIM: CTL) (OTCQX: CTLHF) (Frankfurt: T2N) and local Indigenous groups came together to create the first co-created mining model for lithium extraction in Chile. The parties established their alliance agreement on Tuesday.
“There is no precedent in the history of our territories where the door has been opened for us directly to participate in the design of a mining project to ensure it aligns with the ancestral inhabitants of the territory,” Ercilia Araya Altamirano, ancestral leader of the Colla Pai-Ote community, said.
She says the agreement marks a historic milestone for Chile. Altamirano also said she believes the communities and company have a responsibility to create this new standard. The alliance will initially focus on development of the company’s Laguna Verde project near the city Copiapó. It is expected to enter the production phase in 2026.
CleanTech says it will continuously share information and cooperate with local communities as the project develops. The communities will help with an environmental impact study by providing information about local wildlife and plants.
CleanTech will provide those local Indigenous communities with funding for an assortment of their projects as part of the agreement.
In-line with the Government’s National #Lithium Strategy, the transformative agreement between #CTL & representatives of the Colla territorial communities, ensures early-stage data input, supporting the #EIA process that complies with highest international standards.$CTL $CTLHF pic.twitter.com/21dp0GCdsz
— CleanTech Lithium (@ctlithium) December 12, 2023
Read more: Lithium South Development technical report shows 40% increase in lithium recovery
Read more: Lithium South Development first production well installed at Hombre Muerto lithium project
The Lithium Triangle: the world’s top resource
Altamirano says the company uses lithium extraction methods that minimize harm to the environment.
“They also have a new technology that has demonstrated how they will extract lithium,” she said. “We discovered that it is modern, good and may have less impact.”
CleanTech lithium is also focused on Chile’s Francisco Basin project, its second major operation. That project’s development is approximately one year behind Laguna Verde. Estimates suggest the Francisco Basin contains 0.9 million tonnes of lithium carbonate equivalent at an average grade of 207 milligrams per litre.
The company has an C$87.4 million market capitalization and no debt.
The Lithium Triangle stretching across Chile, Bolivia and Argentina contains approximately 67.5 per cent of the world’s lithium brine resources, according to estimates.
Mining exploration spending in Argentina last year was higher than any other year since 2012. Some analysts predict the country will become the third top producer of lithium by 2027.
Mining companies like Argentina Lithium & Energy Corp. (TSX-V: LIT) (OTC: PNXLF) and Lithium South Development Corporation (TSXV: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) are key influences in the country’s lithium sector.
Lithium South Development Corporation is a sponsor of Mugglehead news coverage
rowan@mugglehead.com
