CleanTech Lithium PLC (AIM:CTL, OTCQB:CTLHF) has issued a further clarification as to how the company might be affected by Chile's recently announced National Lithium Strategy.
President Boric formally presented the strategy in Antofagasta on Friday 21 April, and discussions with government officials since the announcement have indicated that CleanTech’s assets will not require majority state participation.
The focus of plans for majority state control is for assets considered to be of strategic importance to the country and therefore it is understood relate primarily to the Atacama and Maricunga salars, due to their lithium reserves, size and very high levels of lithium concentration.
CleanTech’s assets are considerably smaller set against Salar de Atacama, which has approximately 37% of the world's lithium reserves. CleanTech’s assets have lower levels of lithium concentration and are not of the scale that could be considered assets of national strategic importance.
Under the plans outlined by President Boric, private companies, such as CleanTech, with exploration licences that merit exploiting, will have the option to invite state participation but will not be compelled to do so.
Private companies developing non-strategic assets also have the right to apply for a CEOL (special lithium operation contract). CleanTech has been holding discussions with state entities regarding their minority participation in its assets as this may have benefits to the company in the development of our projects. These discussions will continue.
CleanTech has CEOL applications ready to submit for both the Laguna Verde and Francisco Basin projects but will delay submissions pending the outcome of these discussions.
CleanTech is also at the forefront of sustainability in lithium mining.
"The government's proposals seek the responsible and sustainable development of the lithium industry in Chile, for the benefit of the country alongside that of private enterprise,” said Aldo Boitano, chief executive of CleanTech Lithium in the statement.
“These aims are in-line with CleanTech's strategy. Based on the advice and guidance we have been given, we have been reassured that CleanTech’s assets will not be subject to state control under these proposals, and in fact we see the potential for significant benefit, through partnership opportunities and a more certain investment climate. CleanTech is in a short path to production as we continue to develop our lithium projects based on two successful drilling campaigns in 2022, that resulted in over two million tonnes of lithium carbonate JORC compliant resources which are being upgraded with 3 further drilling campaigns underway," he added.
The company’s direct lithium extraction work has produced a kilogramme of battery-grade lithium carbonate.