CleanTech signs landmark deal with local communities in Chile

CleanTech Lithium announced a partnership with the Colla territorial communities from the high Andean region of Atacama on Tuesday, launching a co-created mining model for lithium extraction in Chile.

The AIM-traded firm said the collaboration would initially focus on developing the Laguna Verde project.

It said the alliance included a commitment to early consultation with the communities, allowing them to provide essential data for the environmental baselines required for the environmental impact assessment (EIA).

The agreement also recognised the importance of ancestral settlements and land use in developing a sustainable lithium industry.

CleanTech said it was committed to contributing to the region's socio-economic development.

As the Laguna Verde project progressed, the company pledged to maintain open communication with local communities, establishing a long-term trusting relationship.

The agreement also aligned with the priorities set by the Chilean government, advancing the objectives outlined in the National Lithium Strategy and informing the Special Lithium Operation Contracts (CEOLs).

"This is the first alliance founded in early consultation with local communities in lithium extraction in Chile," said chief executive officer Aldo Boitano.

"We are very proud to be working with the local communities and strengthening our relationships, which will allow us to continue building a unique model that places people and the planet at the centre.

"This is how we aim to make a positive impact as CleanTech Lithium grows."

Boitano said the alliance between CleanTech Lithium and the local communities represented a "significant step forward" in co-designing the firm's projects, providing data for its environmental baselines and creating long-term socio-economic benefits for the region.

"This agreement demonstrates how seriously we take the agenda set in the government's National Lithium Strategy, proving that goals can be achieved and project development can be done in a more considerate way."

At 1525 GMT, shares in CleanTech Lithium were up 3.01% at 21.38p.

Reporting by Josh White for Sharecast.com.