On September 20th, 2024, members of the Indigenous Community of the Comuna of Copiapó in Chile together with Earthworks submitted a letter to the commission that oversees the Australian Stock Exchange (ASX) regarding CleanTech Lithium (CTL), a company in the process of applying to be publicly listed. The letter outlined some of the community’s concerns that CTL was not adequately informing the ASX or potential investors about the material, environmental, social or governmental risks of their project, as is required by regulations governing stock exchange listings.
The letter outlined how CTL’s project presents the following risks:
- Environmental risks;
- Risks to biodiversity and protected areas;
- Risks due to a lack of compliance with Chilean laws and regulations; and
- Risks to the social license to operate and the right of Indigenous Peoples to Free, Prior and Informed Consent.
In particular, the letter outlined that CTL’s use of direct lithium brine extraction could have unintended consequences for the region’s water resources, impacting Indigenous communities that also rely on the same water sources. CTL has stated that its project would have a low environmental footprint, yet it is located in wetlands and lagoons that contain multiple vulnerable species. Furthermore, CTL has already been found in noncompliance with Chilean environmental regulations, demonstrating a concerning disregard for local and national environmental protections.
One of CTL’s biggest selling points for its Chilean lithium project is its supposed social license to operate, and agreements with Indigenous communities in the region. However, these agreements do not include all of the Indigenous communities that stand to be impacted by the project, and do not include communities that have expressed their opposition to the project. These agreements also do not represent a Free, Prior and Informed Consent process as is required by both Chilean law and international human rights standards.
