Copper-gold explorer Hot Chili (ASX:HCH) and its partner Compania Minera del Pacifico (CMP) have established a new water company, called Huasco Water, to supply sea water and desalinated water to the Huasco Valley region of Chile.
The Huasco Valley lies in the Atacama region, which is one of the most water stressed regions of the world.
Hot Chili has identified 3,700 litres per second of potential future desalinated water demand from new mine developments alone, as well as other community and industrial sources of demand.
The joint venture company will see Hot Chili hold an 80% interest, while CMP will hold the remaining 20%.
Hot Chili, which has a market capitalisation of $146.8 million, says transfer of water assets into the company has begun and the new water company will soon hold the only active granted maritime water concession and most of the necessary permits to provide non-continental water supply to the region.
Huasco Water will provide Hot Chili and CMP water supply security as potential foundation off-takers.
The company adds discussions with other potential water off-takers are advancing and Hot Chili has confirmed that several non-mining desalinated water customers have been identified.
Discussions are progressing with several potential tier one infrastructure partners. Hot Chili says updates will be announced in due course.
Hot Chili is a copper-focused company with three key projects all located in close proximity, namely the Cortadera, Productora, and El Fuego projects.
Write to Aaliyah Rogan at Mining.com.au
Images: Hot Chili
