Hot Chili Limited (ASX: HCH) (TSXV: HCH) (OTCQX: HHLKF) has submitted a second maritime concession application to support a potential multi-user, water network for the Huasco valley area of the Southern Atacama region of Chile.
Importantly, Hot Chili’s second maritime concession application also includes brine discharge for potential seawater desalination operations on the Huasco coastline so that both raw seawater and desalinated water could be provided by a potential water network.
In addition, the Company is also preparing to transfer its water assets (maritime concession, costal land accesses and water pipeline easements etc) into a new stand-alone water company controlled by Hot Chili.
These next steps follow positive initial engagement with several potential desalinated water customers in the Huasco valley area as well as several suitable water infrastructure partners. The Company is pleased to be positioning its water assets to potentially generate significant value for Hot Chili’s shareholders.
While Costa Fuego’s mine development plan considers the use of raw seawater for future processing, the Company’s recently announced Water Supply Concept Study (see announcement dated 26th February 2024) confirmed the potential to also develop a large, multi-user, desalinated water supply business in the Huasco valley area.
A Water Supply Business Case Study is underway, and the Company has been engaging with potential water customers, potential infrastructure partners and Chilean government regulators since announcement of the outcomes of the Water Supply Concept Study.
The second maritime concession application is a key next step to developing a potential desalinated water business to supply community, agricultural and new mining demand of up to 3,700 litres per second (l/s) over the long-term in the Huasco Valley.
Leveraging Hot Chili’s water assets to enable the development of multiple, nearby, large-scale mining projects, comes at a time where Chile’s government is actively encouraging investment in multi-user desalination water networks in the Atacama.
Figure 1: Location of conceptual water network and significant mines
The Company looks forward to providing further updates on its Costa Fuego copper-gold project and its Water Business Case Study for the Huasco valley of Chile.
