Rio Tinto to invest $2.5bn in Argentina lithium mine

: Metals
24/12/12

International miner Rio Tinto will invest $2.5bn to expand its Rincon lithium operation, potentially increasing Argentina's production of the metal six-fold in the next decade, it said today.

The company began initial production at Rincon's 3,000 metric tonnes (t)/yr starter plant in November. Rincon in Argentina's northern Salta province is Rio Tinto's first commercial lithium operation. It taps brine lithium. In October, it finalized the acquisition of Rincon from US-based Arcadium Lithium.

The new investment will increase annual production to 60,000t of battery grade lithium carbonate. Construction on the expansion should start in mid-2025 and ramped-up production using direct lithium extraction (DLE) technology should start in 2028, eventually reaching capacity early in the next decade.

The project will add to Argentina's efforts to become a world-class energy player with lithium, LNG and oil exports transforming the country in the coming years.

Argentina was the fourth lithium producer in 2023, with 9,600t, according to the US Geological Survey. It has 3.6mn t of lithium reserves and 22mn t of lithium resources, second only to neighboring Bolivia.

Argentina, Bolivia and Chile form the "lithium triangle," which holds around 60pc of the world's lithium resources. Chile is the world's second producer after Austria, while Bolivia's production is negligible.

Rio Tinto referenced Argentina's economic reforms, including an incentive mechanism for long-term investments, known as the RIGI, as providing a new environment for investment.

The RIGI is applicable to investments over $200mn and provides tax and customs benefits, as well as legal stability. Rio Tinto would join eight projects that have already applied for RIGI approval.

President Javier Milei announced on 10 December, his first anniversary in office, that the government was planning sweeping tax reforms that would lower 90pc of the country's taxes, and elimination of exchange rate and customs controls. Monthly inflation in November was 2.4pc, down from 25.5pc in December 2023.

In a September 2024 report, the Argentinian government listed 50 lithium projects, with 6pc producing the white metal, 10pc under construction and 14pc in the feasibility phase. The rest were in the initial development stage.

By Lucien Chauvin

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24/12/12

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24/12/11

US inflation rises to 2.7pc in November

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24/12/10

Assad regime end to alter Mena steel trade flow

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Moselle river crash to have limited impact on AM

24/12/10

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24/12/06

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