Rio Tinto's US$2.7bn Rincón lithium project is first mining initiative approved under Argentina's RIGI

Rio Tinto's US$2.7bn Rincón lithium project in Salta province, northwest Argentina, is the first mining initiative to be approved under Argentina's RIGI incentive scheme. 

This milestone will enable the company to begin construction of new chemical plants and commence operations by 2028, with an installed capacity of 60,000t/y of lithium carbonate equivalent (LCE), to be reached gradually over three years.

The US$2.5bn expansion project, which will add 57,000t/y of battery-grade lithium carbonate capacity to the existing 3,000t/y starter plant, is expected to begin construction this year, Rio Tinto said in its first-quarter report last month.

The construction of a pilot plant and two lithium carbonate plants is planned, according to a report from the chamber of deputies last month, which describes the projects currently underway within the RIGI framework.

The Anglo-Australian company's investment commitment is based on a 40-year mine life at the Rincón salt flat and is expected to operate in the first quartile of the cost curve, the report adds.

Although the process of reviewing proposals submitted by companies is complex, due to the large number of national ministries and secretariats involved, coordinated by an evaluation committee of the economy ministry, Rio Tinto received approval for its initiative. It was registered under the category of long-term strategic export projects, as it exceeds the US$1bn threshold.

The announcement by Daniel González, the nation's energy and mining secretary, made during a recent industry event, has raised expectations for other mining projects seeking authorization to enter the RIGI program, which offers tax, customs and foreign exchange benefits, as well as a stable legal framework for investment.

Rio Tinto has considered both conventional methods, such as evaporation ponds for extracting lithium from brines, and the use of direct lithium extraction (DLE) technology at a processing plant.

According to a Rincón technical report, the brine remaining after mineral extraction will be placed in a disposal facility where reinjection testing is already underway. Sustained production of 3,000t/y of LCE from the existing, fully permitted plant is expected this year.

In addition to being a global mining giant, Rio Tinto has become Argentina’s leading lithium producer following the acquisition of Arcadium Lithium late last year, which gave it control of the Fénix and Olaroz operations.

The company’s portfolio also includes the Cauchari initiative, currently under environmental assessment, and it expects to soon obtain RIGI benefits for its Sal de Vida project in Catamarca province.