Huasco Water A Water Supply Business for the Growth and Development of the Southern Atacama, Chile
1COMPANY PRESENTATION |
www.hotchili.net.au
Huasco Water
A Water Supply Business for the Growth and
Development of the Southern Atacama, Chile
ASX: HCH
TSXV: HCH
OTCQX: HHLKF
A
NEW
WATER
SUPPLIER
IS
COMING
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Huasco Water
• New Joint Venture water company
established. Hot Chili (80% interest) & CMP1
(20% interest)
• Long lead-time items secured, including a
granted maritime water concession to
extract seawater and a permit for coastal
land access
• Transfer of all water assets to Huasco Water
in-progress
• International Engineering firm ILF appointed
to complete regional Water Supply Business
Case Study2 (PFS-Engineering) with targeted
completion in H1 2025
• Water off-taker and joint infrastructure
partnership discussions advancing
Hot Chili’s Water Business is the potential
solution to unlocking copper supply in
the Atacama
1 CMP refers to Compañía Minera del Pacífico
Huasco Water plans to construct a multi-user water network in
Southern Atacama region of Chile3
2 Will be referred to as “the PFS” or “the Study” through this presentation
3 See Announcement ‘Hot Chili Launches New Water Company - Huasco Water’ dated 08 July 2024
Proposed Sea Water Pipeline Route
Proposed Desalinated Water Pipeline Route
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An integrated team brings vision and expertise to the Huasco Water Project
Engineering
Finance, Investor &
Partner Relations
Customer & Market
Engagement
Regulatory &
Stakeholder
Executive Director
Christian Easterday
Project Consultant
Martin Ridley
Charles Marcus Consult.
Delivery Director
Grant King
Lead
Jose Silva
Lead
Jose Silva
Lead
Christian Easterday
Lead
Marcelo Hernando
Engineering Advisory
Alvaro Hernandez
Paillahuinte
Engineering Consultancy
ILF
Marine Consultancy
PRDW
Legal Advisory
Juan Francisco Sanchez
Valdivia Legal
Environment
Cristobal Julia
Legal Advisory
Andrew Newbery
Gowling WLG
Executive Director
Jose Silva
Executive Sponsor
Claudia Monreal
HW Board
Project Team
HW Management
Huasco Water Employee
External Consultant/Advisor
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Potential Customers Considered in
Study1
Basis of Study - Water Demand (L/s)1
Preliminary Feasibility Study Scoping Study3
Stage 1 - Year 1 Stage 2 - Year 3 Stage 3 - Year 23+
Seawater Costa Fuego 600 600 -
Seawater Total 600 600 -
Desalinated
Water
Huasco Valley Communities - 100 100
CMP - 200 200
Nueva Union Relincho - 740 1,340
La Fortuna - 100 100
ATEX - - 400
Other 165 165
Desalinated Water Total - 1,305 2,305
Huasco Water – Conceptual Basis of Study1
Proposed three-stage approach2 aligned with Costa Fuego development plan
2 Further detail of staged approach included in Appendix slides 9 to 11
3 Stage 3 study work will only be completed at a Scoping Study level, reflecting an appropriate level of investment to inform decisions which remain on a 20+ year time-frame
Stage 11: Establishment of sea water intake, principal
pipeline route and infrastructure connection to supply
minimum 600 L/s seawater to Costa Fuego.
Potential Stage 21: Baseline modular desalination plant,
desalination pipeline and supply to Los Colorados, Nueva Union
projects and nearby communities
Potential Stage 31: Desalination upgrade and extension to
higher Andean projects for 2050 and beyond
Basis of Study -
Stage 2 Network1
NProposed Sea Water Pipeline Route
Proposed Desalinated Water Pipeline Route
1 Conceptual water demands and timeframes are for the purposes of the Huasco Water PFS-level Engineering Study only. They do not represent a forecast of actual water supply or demand, nor do
they imply that potential customers will go into production and would enter into water offtake agreements with Huasco Water.
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Year 1 Year 2 Year 3 Year 4
Financial Analysis
Investor Engagement – Preliminary Feasibility Study
Regulatory & Community Stakeholder engagement EIA
Intake and Initial Seawater Transmission
Construction
Completed Present
Adjust Maritime Concession for Desalination
Preliminary Feasibility Study
Customer Negotiations
Concept
Study
Customer Engagement
Concept
Study
Second Maritime Concession Application for Expansion of Future Capacity
Set-Up SPV2
Commissioning and
revenue generation
Feasibility Study Front End
Engineering Design
Stage 1 Construction
& Investment
Decision
Environmental
Impact Assessment
(EIA) Submission
Investor Engagement - Final Investment Decision (FID)
Regulatory & Community Stakeholder
engagement FID
Regulatory & Community Stakeholder engagement
Ongoing
Conceptual Development Roadmap1
Conceptual roadmap ensures alignment and synergies between Huasco Water and Costa Fuego
1 All dates are preliminary in nature and subject to change
2 SPV refers to Special Purpose Vehicle
Preliminary
Feasibility Study
Release
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Huasco Water: PFS Progress1
Engineering
Regulatory and Stakeholder
Customer and Market Engagement
PFS on-track for completion in H1 2025, with critical workstreams progressing across three key areas
• Initial Engineering trade-off Study complete, with analyses determining
most viable solution based on cost and deliverability
• Recommendations from the trade-off are being reviewed for consistency
with the Costa Fuego PFS, being developed in parallel
• Transfer of water assets to Huasco Water nearing completion
• Secondary concession application2 progressing, expected by Q1 2026
• Preliminary environmental studies and archaeological surveys being
completed at the maritime concession
• Significant interest from regional near-mine developers and non-mining
customers for future desalinated water offtake
• Positive engagement with the local community, who see fresh water
supply as fundamental to the region
1 Further detail on PFS scope and trade-off studies are available in the Appendix slides 12 - 14
2 See announcement ‘Hot Chili Submits Second Maritime Concession Application’ dated 12 April 2024
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Risks & Mitigations
Key risks are being managed and the overall Project risk profile is decreasing
Stakeholder Complexity
Suitability of Maritime Concession
Environmental Approvals
Sufficient Third-Party Offtakers
Impact on Costa Fuego
Risks Mitigations
Leveraging local and global experts within the Huasco Water team who
understand needs of stakeholder groups
Second concession has been moved to a prioritized approval process,
expected completion by Q1 2026
Site of planned desalination plant controlled by a potential client,
pipeline easement secured, Huasco Water team has proven track
record of securing easements
Early engagement has been overwhelmingly positive, with strong
understanding of potential to reduce CAPEX hurdles, decrease timeline
to development, and significantly increase Project NPV
All Huasco Water approvals required for the Costa Fuego Project are
already secured, so proposed Stages 2 and 3 of Huasco Water will not
delay Costa Fuego
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Appendix