Can you update us on recent developments for Wealth Minerals?

At the Ollague project, we recently developed an excellent pre-agreement with the community, enabling us to proceed with a four-hole drilling program. The geological information we have about the deposit is encouraging. Simultaneously, we were having discussions with neighboring companies that also have concessions. Wealth Minerals controls 8,200 hectares, which is sufficient to develop a project, but by adding concessions, we could together increase the yearly output of the deposit. We intend to do it independently, but we are open to a joint venture if an adjacent company is interested.

At the Atacama project, we have been working for 3 to 4 years with different communities claiming lands in our concessions. Three communities are claiming ancestral ownership of the land. We have had excellent discussions with them and are progressing in formulating a pre-agreement.

Can you describe any positive geological news?

The government asked SQM to complete an assessment of the 300,000 hectares of the Atacama Salar. They collected geological information, the water balance, the impact of the brines, and so on, producing a not-yet finalized but very comprehensive document. One of the spots where they drilled a hole was right on the border of our Salar, 1,000 meters deep. They proved that there was an average of 1,250 ppm of lithium concentrate. That is one of the highest concentrations in the world. That proves that our geophysics made 4 years ago is right because we found an anomaly about 600 meters thick, which is supported by the drilling SQM conducted right on our border.

What do you offer the communities?

Our main offer to the local communities is for them to become part of the joint venture at no cost, giving them 5%. The agreement is still under discussion, but we are progressing in that direction. An advantage is that as the communities get involved in the project, they gain a fuller sense of the challenges and realities of lithium mining and can experience the dedication and consideration we are putting in.

What can Chile do to incentivize investment in lithium?

We have waited over six years for the government to announce clear rules and regulations for the private sector’s involvement in lithium operation and production. In the time that Wealth Minerals has been waiting, of the 17 companies that were in the space when we started, nearly 15 are now out because they decided not to continue pursuing Chile as an investment destination for lithium or they couldn’t afford the administrative costs of maintaining the company.

We expect a forthcoming announcement clarifying the rules and believe it will most likely allow the private sector to form joint ventures with state-owned companies.

How do you view the supply and demand dynamics of lithium?

I would estimate that the long-term representative price is around US$40,000/t. However, based on the market analysis and information available, I foresee a shortage that may last a few years, between 2025 and 2030. In that period, we will again see the prices rise.

Why must Chile commit to a strong lithium industry?

As we produce lithium for the electricity transition, part of that development in the electricity transition will be used to produce lithium. So, there is a positive feedback loop in play. I think Chile has a moral commitment to the world to supply critical minerals. We have the second-largest known lithium reserves in the world and the largest known copper reserves; two out of the four critical metals for the transition. This is a highly environmental government, and on an ideological level, Chile must commit to helping the world.

Producing a metal with zero emissions or no environmental challenges is impossible. However, you can balance the good that the finished products of lithium and copper do for the global transition. In that case, it significantly outweighs the footprint and the minor local environmental impacts in a more environmentally focused mining industry. Furthermore, on a practical level, lithium mining will bring taxes and royalties to the government at a massive scale, dramatically increasing the quality of life for all Chileans.