CleanTech Lithium, a leading lithium producer, has announced its plans to open a second mine in Chile by 2027. The mine, located in the Francisco Basin, has the potential to become a major supplier of battery-grade lithium to the European and US markets.
The company estimates that the net cashflow after tax and royalties for the mine will be approximately $2.5 billion over the full production period. Operating costs are projected to be $3,641 per tonne of lithium carbonate, with a capital expenditure of $450 million.
To extend the project’s lifespan, CleanTech will conduct a resource drill program in the final quarter of this year. This program aims to upgrade the resource estimate and enhance the project’s overall value.
“Francisco Basin is our second project, following our more advanced Laguna Verde project,” stated Aldo Boitano, Chief Executive of CleanTech Lithium. “Combined, these two projects have a total net present value of nearly $3 billion and an internal rate of return of over 43% for each project.”
In addition to Laguna Verde and Francisco Basin, CleanTech Lithium also owns the Llamara greenfield project, which is located about 600km north of the other two sites. This project is situated in the Pampa del Tamarugal basin, one of the largest basins in the renowned lithium triangle.
Chile, the world’s leading copper producer and the second-largest producer of lithium, plays a crucial role in the global transition from fossil fuels to renewable energies. As per the country’s government projections, the demand for lithium is expected to quadruple by 2030, reaching 1.8 million tonnes, while the available supply is projected to be 1.5 million tonnes.
