CleanTech Lithium PLC (CTL) has submitted its main application for a Special Lithium Operation Contract, or CEOL, for the company’s flagship asset, Laguna Verde.
Laguna Verde is one of six saline systems that the Government of Chile has prioritised for development by the private sector, and the CEOL gives the applicant the right to produce lithium from the specified project.
Although contracts are normally awarded after a public tender, in the government recently simplified the procedure in regard to six salt flats, one of which is Laguna Verde. Under the simplified procedure, an applicant can be awarded a CEOL through direct negotiation if it meets certain criteria.
The company believes that its application for a CEOL at Laguna Verde demonstrates that these criteria have been met, and so expects to proceed with direct negotiation with the government on the terms of the CEOL.
The Application details the basis under which CleanTech Lithium intends to advance Laguna Verde and is supported by independent technical studies and reports covering the considerable work undertaken and progress achieved on the project over the past four years. The application runs to 1200 pages of supporting documentation.
It includes the work undertaken on direct lithium extraction and the DLE pilot plant in Copiapó, and the recently announced production of high-grade lithium carbonate with 99.78% purity.
In addition, the application includes letters of support from indigenous community leaders for the award of the CEOL.
“We believe that our CEOL application fully complies with the criteria established by the Mining Ministry to enter the simplified procedure and direct negotiation,” said Steve Kesler, executive chairman of CleanTech Lithium.
“We think this marks a major step towards advancing sustainable lithium supply from Chile to the global battery and EV market. CleanTech Lithium has undertaken extensive work on the project over the past four years. With the recent announcement of high-grade lithium carbonate production from Laguna Verde brine and with the pre-feasibility study expected to complete end of March, we believe we are extremely well-placed to engage with strategic partners and move the project forward towards the production of lithium carbonate in a sustainable manner.”
He added: “I would like to thank the local community leaders who have supported our CEOL application. We believe this reflects the approach we have taken as a company to work alongside the communities – and local universities – in a collaborative and open manner and this is a key part of our story in the application.”
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Permitting can be nerve-wracking, but in this case CleanTech can approach the process with a certain amount of confidence. It meets all the government criteria as set out in the simplified CEOL application procedure that applies to Laguna Verde, and looks to be blazing a trail in developing sustainable methods of lithium production, not just in Chile, but globally. Previously, there had been doubts about the viability of DLE as an extraction method. But with CleanTech’s recent production of high purity lithium carbonate, those doubts have largely been put to rest. The company is building momentum now, and looks set for a memorable 2025.