Clontarf progresses bid to extract lithium in Bolivia

Clontarf Energy plc has made progress in the bidding process for direct lithium extraction from seven priority salt pans in Southern Bolivia.

FINANCING

The company’s joint venture with NEXT-ChemX Corporation proposes a pilot plant in partnership with state-owned lithium company YLB* by the end of 2024.

On 4 March Clontarf submitted its qualification materials to YLB in relation to the call for bids.

YLB is expected to complete its assessment this month, with negotiations on licence terms for successful applicants anticipated from early April.

Direct lithium extraction projects in Brazil could also be in line for financial support from the European Commission.

On 27 February a delegation from Brussels began an initiative with Bolivia, attended by companies, including Clontarf, banks and development agencies.

“The result was that the EU institutions agreed in principle to finance related infrastructure, through the Bolivian authorities, and accepted that direct lithium extraction is clean and environmentally friendly,” said the company.

“As infrastructure spend can be two-thirds of the total capital cost of new mines in remote locations, this support is critical.”

Any investment would qualify for contractual offtake rights.

Chairman David Horgan added that Bolivia was “determined” to boost output of battery-grade lithium, under law.

“Its high-grade brines carry economic grades of lithium and other salts offering cleaner sources than current mining practices of burning hard rock in Chinese coal-fired furnaces.

“The convocatoria, or formal call for bids, gives all sides a legally binding basis for exploration and development agreements in joint venture with national authorities.”

*Yacimientos de Litio Bolivianos