The Argentine government has authorised the $2.5bn expansion of Rio Tinto’s Rincon Lithium Project, marking the first mining initiative approved under the nation’s new investment incentive programme.
The announcement came from Daniel Gonzalez, Secretary for Mining and Energy Coordination, during a press conference in Buenos Aires, reported Reuters.
Concerns have been raised within Argentina’s mining sector regarding delays in the approval of seven other projects submitted under the RIGI programme, which was introduced nine months ago.
Roberto Cacciola of the CAEM mining chamber addressed these concerns, acknowledging industry anxiety over the status of mining RIGIs.
The administration of President Javier Milei is seeking to enhance South America’s mining sector as a strategy to attract foreign currency and stabilise an economy currently challenged by high inflation.
As the fourth-largest global supplier, Argentina plays a crucial role alongside Chile and Bolivia in a “lithium triangle” that contains major reserves of this essential metal used in electronic devices and electric vehicles.
While South America also exports silver and gold, with significant copper projects under construction, these ventures have yet to reach production stages. The RIGI programme has also attracted interest from Canadian company McEwen Copper and South Korea’s Posco.
Situated in Salta Province, the Rincon project involves extracting lithium through brine using a production wellfield and includes processing and waste management facilities.
The project utilises direct lithium extraction technology, which supports water conservation and reduces waste while ensuring consistent production of lithium carbonate.
The expansion plans involve augmenting the current 3,000-tonne starter plant with a 57,000-tonne plant, extending the mine’s operational life to 40 years.
Construction on this expanded facility is anticipated to begin in mid-2025, pending necessary permits, with initial production set for 2028 and a three-year period to reach full capacity. This expansion is expected to create jobs and economic opportunities for local businesses.
Rio Tinto announced its investment in expanding Rincon in December 2024 as its first commercial-scale lithium operation.
Initial production at the 3,000-tonne starter plant was achieved by the company in November 2024, 32 months after acquiring the greenfield project.
