Mining’s old guard needs strong medicine
A new report details subpar investor returns in the mining industry over the last decade, particularly big cap diversified companies which have not adapted to new realities.
Chile-focused CleanTech Lithium (AIM: CTL) said on Friday it had received initial sample results from two of its exploration projects that show a subsurface brine aquifer target in the Salar de Atacama basin and the presence of boron.
Llamara, a greenfield project in Northern Chile, had two targets drill tested. The first samples were depleted in lithium, while the first batch of surface recorded minor lithium enrichment along with high grades of boron. A second batch of surface sample results is pending.
At the other presently unnamed project in the Atacama Desert a subsurface brine aquifer target was identified.
Salar de Atacama is designated as a strategic salt flat by the Chilean government. This means that any commercial development will require a joint venture with a state entity holding a majority (51%) stake, which CleanTech views as suitable for such a strategically important basin.
The company noted that community engagement at the project, covering a total area of 377 km2, will also be crucial, but it believes its proposed method —Direct Lithium Extraction (DLE)— will grant it support, as it removes the need for water-intensive evaporation ponds.
All along the world’s EV supply chain, this new way of mining lithium is being presented as the solution for increasing lithium output while protecting the environment. Billions of dollars are pouring in to what Goldman Sachs calls “potential game-changing technology,” as its impact is expected to be much like shale’s on the oil industry.
According to the bank, if 20% to 40% of Latin America’s brine projects use DLE, it could increase the region’s lithium output by about 35% from 2028 — or an 8% boost to global supply.
CleanTech Lithium said while the two projects add potential upside, its main focus remains Laguna Verde (PFS underway) and Francisco Basin (scoping study completed) projects.
Chile is the world’s top copper producer and the second-largest producer of lithium. Both metals are considered vital commodities for the global transition from fossil fuels to renewable energies.
Global demand for lithium, according to the country’s government projections, will quadruple by 2030, reaching 1.8 million tonnes. Available supply by then is expected to sit at 1.5 million tonnes.
Separately, the company’s chief executive Aldo Boitano said CleanTech continued to work towards the planned ASX listing in Australia in the coming months.
Delivering half-year results, the company said JORC resource estimates have increased at its Laguna Verde and Francisco Basin projects, particularly in the Measured & Indicated categories.
Combined, the projects now have an net present value of approximately $3 billion and an internal rate of return of more than 43% each, Boitano noted.
