CleanTech Lithium PLC (AIM:CTL, OTCQX:CTLHF) executive chairman Steve Kesler explains the significance of the Chilean government giving Laguna Verde priority for the special lithium operating contract process.
Steve Kesler: It’s very important. We've been talking to our investors and potential investors for a long time now, saying we are very well established in Chile with the most advanced company.
We've got a very exciting project at Laguna Verde. We have strong community support, and we are best placed to be ahead of the queue to get one of these CEOLs, the special operating contract.
But you know what it's like—until you've got it, there’s still a bit of nervousness about the process, whether we are going to get it or not.
Today, we could announce that there’s a very clear line of sight to getting the contract.
We filed our expressions of interest back in April.
The government announced the results of the process and received 88 applications for the development of 16 salars.
Yesterday, they announced that they’ve selected six projects, which they regard as having the most favourable conditions for development, and one of those is Laguna Verde.
Proactive: Can you walk us through the next steps?
Steve Kesler: The process is now to formally file the application by the end of the year.
In Chile, it’s a legal requirement for there to be a tender process, so others apart from ourselves can apply.
But the government has put in place a number of criteria. One, the party must be a participant in the lithium industry, which we clearly are.
The company must demonstrate the financial capacity to develop the project, and we’ve already demonstrated that.
Most importantly, the company must hold at least 80% of the mining licences in the salar area, and we have made it clear that we hold the necessary licenses at Laguna Verde.
So, we are the only company that can comply with this condition.
Proactive: It seems like CleanTech is well-positioned. What kind of support is the Chilean government offering?
Steve Kesler: The government has made it clear that they want to increase lithium production in Chile.
There were five ministers standing together yesterday, including the Minister of Mines, Minister of Finance, and Minister of Economy.
They want to see three or four new projects in development by 2026 and increase lithium production by 70% by 2030.
They’re looking to the private sector, particularly these six projects, to lead the charge.
For these six, they’ve streamlined the process to begin with community dialogue, and we are in a strong position since we’ve already been in discussions with the Indigenous communities and signed a formal alliance agreement last year.
Proactive: Could you expand on how CleanTech Lithium has engaged with the local communities?
Steve Kesler: Yes, we’ve been engaging with the indigenous communities for some time. Although nobody lives within 100 km of the project, there are communities along the transport corridors that have historical ties to the land.
We’ve included them in drilling programs and pilot plant work, and we signed a formal alliance agreement to ensure they are part of the process.
We’ve also volunteered a 1.5% royalty to a trust fund for the indigenous communities, to be used for education, health, and social projects. It’s a win-win for both the communities and ourselves.
Proactive: What is the company's timeline for moving forward?
Steve Kesler: We’re aiming to submit our application and move quickly.
The government has made it clear that they want to move fast on these projects.
Once the contract is signed, we’ll proceed with construction, and our target is to be in production by the end of 2027.
We’ve also seen the lithium market starting to recover after a recent dip, and we feel that we’ve hit the bottom, with prices set to rise again.
CleanTech Lithium is fast-tracking to be the first private sector company in Chile to produce lithium.