The committee of the Large Investment Incentive Regime (RIGI, by its Spanish initials) approved its first lithium mining project in the country. Named Rincón de Litio (Lithium Corner), is located in Salta province and will entail a US$2.7 billion investment.
The company behind the project is British-Australian multinational Rio Tinto, the world’s second-largest metals and mining corporation. Last year, it acquired Arcadium Lithium’s operations and its environmental impact study was approved.
Rio Tinto said in a statement that the investment decision demonstrates “the company’s commitment to establishing a world-class portfolio of battery materials.” Energy and Mining Secretary Daniel González made the announcement during Arminera, a mining exhibition in Buenos Aires.
The head of the Argentine Chamber of Mining Companies, Roberto Cacciola, said after the announcement that the sector was feeling that “there was a difference between energy and mining” in terms of which projects were approved.
President Javier Milei confirmed the news at the closing of the AmCham Forum. “With the RIGI, there is respect for the economic equation of the business,” he said.
Passed last year, the RIGI offers tax, customs, legal, and foreign exchange benefits for investments exceeding US$200 million. It is open to Argentine and international companies alike, but they have to invest in foreign currency.
According to the company, the total production capacity of Rincón de Salta is 60,000 tonnes per year of high-quality lithium carbonate for batteries. The current plant has a 3,000-tonne capacity and the expansion plant, for which the RIGI was passed, has a capacity of 57,000 tonnes. Rincon is expected to have a lifespan of 40 years, Rio Tinto added. The construction of the expanded plant is scheduled to begin in mid-2025, subject to permit approvals.
“First production is expected to begin in 2028, followed by three years of ramp-up to full capacity, which will generate a significant number of jobs and economic opportunities for local businesses,” the press release stated.
SOURCE: buenosairesherald.com