Clontarf Energy plc has been rejected for the phase 4 round of bids to extract lithium from priority salt pans in Bolivia.
INDIA
The company said it had been unable to provide an A3 or A- credit rating, as requested, because it had no credit rating or issue of bonds.
Clontarf identified an offtake partner, “at the encouragement of the EU Commission” with its “substantial revenues, profits and bank lines”, as well as an A2 short-term credit rating, which was declined.
“Unfortunately, the authorities appear to have declined the ‘A2’ short-term credit rating, possibly because the long-term credit rating (BBB+) was marginally below the requested ‘A3’,” added the company.
“This means that Clontarf hasn’t passed through to the fourth stage of the convocatoria.
“This regrettable outcome may not be well-grounded in policy or logic: Clontarf and its partners had undertaken to provide 100% of project capital, both from equity markets and appropriate infrastructural funds, to be channelled via the national borrowers.
“Accordingly, there seemed little logic for bonds, bank guarantees or ratings.
“Clontarf made these points both directly, and via EU entities.
“We continue to argue this case and are optimistic that, with proof of technology and confirmation of EU financial support, that this subject may be revisited whether in this or a future bid round, or direct negotiations.”
Chairman David Horgan added that its technology partners were now assembling a pilot-plant at a “trusted facility in India.”
“We plan to process test volumes of brines at this facility.
“If plant performance confirms laboratory results this will help Clontarf drive forward with this important project.”