The multinational Rio Tinto has just signed a binding agreement to acquire the Rincon lithium project in Argentina from Rincon Mining, a company owned by funds managed by the private equity group Sentient Equity Partners, for an amount of around 825 million dollars.
Rincon is a large undeveloped lithium brine project located in the heart of the lithium triangle in Argentina’s Salta province, an emerging hub for greenfield projects. The project is a scalable, long-term resource and has the potential to have one of the lowest carbon footprints in the industry which can help deliver Rio Tinto’s commitment to decarbonise its portfolio.
Rio Tinto CEO Jakob Stausholm admits that “this acquisition is strongly aligned with our strategy to prioritise growth capital in commodities that support decarbonisation and continue to deliver attractive returns to shareholders. The Rincon project has the potential to provide a significant new supply of battery grade lithium carbonate to capture the opportunity presented by the growing demand driven by the global energy transition. It is expected to be a long-lived, low-cost asset that will continue to build on the strength of our battery materials portfolio, with our combined lithium assets spanning the U.S., Europe and South America. It is expected to be a long-life, low-cost asset.
Once acquired by Rio Tinto, the project will be subject to completion of studies to confirm the resource and define a resource statement consistent with the Australasian Code for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012 (JORC Code).
It will also work to determine the development strategy and timeline, secure updates to existing environmental impact assessment permits to enable development and production, and undertake ongoing engagement with the communities, the province of Salta and the Government of Argentina. This consultation process will ensure that we build a world-class operation in the province of Salta. Subject to this FIRB approval, the transaction is expected to be completed in the first half of 2022.
