"Letter to the Australian Stock Exchange on CleanTech Lithium", 24 September 2024

On September 20th, 2024, the Indigenous Community of Comuna de Copiapó in Chile, alongside Earthworks, submitted a letter to the Australian Stock Exchange (ASX) regarding CleanTech Lithium's (CTL) upcoming public listing. The letter raised concerns that CTL had failed to properly disclose key environmental, social, and regulatory risks associated with its project, as required by ASX regulations.

Key risks identified include:

• Environmental harm, including impacts on biodiversity and protected areas: CleanTech Lithium would be allegedly failing to adequately address the significant environmental risks associated with its direct lithium extraction (DLE) technology, which requires large volumes of freshwater in an already water-scarce region. The company’s proposed mitigation measures, such as brine reinjection, remain unproven and could result in lasting harm to local ecosystems and communities. Additionally, the project threatens the biodiversity of Laguna Negro Francisco, a RAMSAR site and part of the Three Crosses National Park, home to vulnerable species like flamingos, geese, and guanacos, with potential consequences for national and international conservation efforts.
• Noncompliance with Chilean laws: The company's environmental studies were found to be in in noncompliance with Chilean environmental regulations, receiving a fine from the National Water Agency in 2023 for failing to inform authorities about changes to their exploratory studies, raising concerns over their environmental impact and relationships with regulatory agencies.
• Erosion of social license and violations of Indigenous Peoples' rights to Free, Prior, and Informed Consent: The letter argues the company has allegedly misrepresented its relationships with Indigenous communities, claiming support from some while excluding others who oppose the project, including the Colla Indigenous Community. As such, the company has failed to obtain Free, Prior, and Informed Consent (FPIC) as required by Chilean law, undermining its social license to operate and creating legal and financial risks for investors.

Hence, the letter argues that CleanTech Lithium risks violating ASX transparency requirements, and demands that the ASX and Australian Securities and Investments Commission ensure CleantTech Lithium fully disclose all environmental and social risks, comply with Chilean laws on community consultation and FPIC, and halt its public offering if it fails to do so. These issues are critical for affected communities and regional biodiversity conservation.