CleanTech announces results of plant location study

(Sharecast News) - CleanTech Lithium announced the results of a plant location study on Tuesday, as part of the ongoing pre-feasibility study (PFS) for its Laguna Verde Project in Chile. The AIM-traded firm said the study, led by Worley from its Santiago office, evaluated the optimal plant location for producing 20,000 tonnes per annum of battery-grade lithium carbonate equivalent (LCE).

Xi'an Lanshen New Material Technology Company had been selected to design the lithium processing plant and equipment, while Worley would design the balance of plant and infrastructure.

The company said the study presented a trade-off analysis between locating the entire plant at Laguna Verde versus splitting the facilities between Laguna Verde and the nearby mining centre of Copiapó.

It said the decision was made to proceed with the option of situating the direct lithium extraction (DLE) plant and eluate concentration stages at Laguna Verde, and the carbonation plant in Copiapó.

The configuration would be advantageous, as it would use Copiapó's developed infrastructure and access to a skilled workforce, despite a minor increase in transportation volumes.

Concentrated eluate with 6% lithium would be transported to Copiapó for impurity removal and carbonation stages.

CleanTech said around 70% of the operational workforce, according to the Lanshen plant design, would be employed at the carbonation plant in Copiapó, offering significant benefits in local hiring, including improved diversity outcomes and economic contributions to the local community.

Additionally, the approach would reduce the footprint at the Laguna Verde project site, minimising environmental and construction impacts at the high-altitude location of 4,300 metres above sea level.

The carbonation plant in Copiapó was planned to eventually expand to process eluate from the Viento Andino project as well.

CleanTech said the PFS, expected to be completed by the end of the fourth quarter, would include updated capital expenditure and operational expenditure estimates, further refining the optimal production development strategy for the firm.

"We undertook a plant location study as part of our ongoing PFS for the Laguna Verde project resulting in the decision to locate the DLE and eluate concentration stages at the project site, and the carbonation plant in Copiapó," said executive chairman and interim chief executive officer Steve Kesler.

"This will have various benefits such as reducing the footprint and impacts at Laguna Verde, and taking advantage of existing infrastructure, power supply and skilled workforce in Copiapó."

Kesler said the plant at Copiapó could then be expanded to treat material from the firm's Viento Andino project, and potentially others.

"The decision on plant configuration will feed directly into the wider PFS which is due to be completed later this year."

At 1436 BST, shares in CleanTech Lithium were up 1.4% at 14.5p.

Reporting by Josh White for Sharecast.com.