REG - Rio Tinto - Rio Tinto to invest in Rincon lithium project

Rio TintoAnnouncement

12/12/2024 12:00

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RNS Number : 8977P  Rio Tinto PLC  12 December 2024

 

Notice to
ASX/LSE

 

Rio Tinto to invest $2.5 billion to expand Rincon lithium project capacity to
60,000 tonnes per year

12 December 2024

 

Rio Tinto has approved $2.5 billion(1) to expand the Rincon project in
Argentina, the company's first commercial scale lithium operation,
demonstrating its commitment to building a world-class battery materials
portfolio.

 

Rincon's capacity of 60,000 tonnes of battery grade lithium carbonate per year
is comprised of the 3,000-tonne starter plant and 57,000-tonne expansion
plant. Rincon's mine life is expected to be 40 years(2), with construction of
the expanded plant scheduled to begin in mid-2025, subject to permitting.
First production is expected in 2028 followed by a three-year ramp up to full
capacity, generating significant job creation and economic opportunities for
local businesses.

 

Rio Tinto Chief Executive Jakob Stausholm said: "The attractive long-term
outlook for lithium driven by the energy transition underpins our investment
in Rincon. We are dedicated to developing this tier 1, world-class resource at
scale at the low end of the cost curve. We are equally committed to meeting
the highest ESG standards, leveraging our advanced technology to halve the
amount of water used in processing, while continuing to grow our mutually
beneficial partnerships with local communities and Salta province.

 

"Building on Argentina's supportive economic policies, skilled workforce, and
exceptional resources we are positioning ourselves to become one of the top
lithium producers globally. This investment alongside our proposed Arcadium
acquisition ensures that lithium will become one of the key pillars of our
commodity portfolio for decades to come."

 

Located in the heart of the 'lithium triangle' in Argentina, the Rincon
project consists of brine extraction using a production wellfield, processing
and waste facilities, as well as associated infrastructure. The project uses
direct lithium extraction (DLE) technology, a process that supports water
conservation, reduces waste and produces lithium carbonate more consistently
than other methods.

 

Rincon is a large(3), long-life asset, with Ore Reserves 60% higher than we
assumed at the time of acquisition. It is expected to be in the first quartile
of the cost curve, demonstrating resilience and ability to operate profitably
through the cycle.

 

This investment supports Argentina's ongoing ambitions to become a
world-leading lithium producer. Argentina's economic reforms and the new
Incentive Regime for Large Investments ('RIGI') provide a favourable
environment for investment, offering benefits such as lower tax rates,
accelerated depreciation, and regulatory stability for 30 years, protecting
the project from future policy changes, as well as enhanced investor
protections.

 

1 Included in the Group's capital expenditure guidance provided at Rio Tinto's
Investor Seminar on 4 December 2024.

2 The production target of approximately 53 kt of battery grade lithium
carbonate per year for a period of 40 years was previously reported in a
release to the ASX dated 4 December 2024 titled "Rincon Project Mineral
Resources and Ore Reserves: Table 1". Rio Tinto confirms that all material
assumptions underpinning that production target continue to apply and have not
materially changed. Plans are in place to build for a capacity of 60 kt of
battery grade lithium carbonate per year with debottlenecking and improvement
programs scheduled to unlock this additional throughput.

3 See ASX release dated 4 December 2024 titled "Rincon Project Mineral
Resources and Ore Reserves: Table 1" for details of Mineral Resources and Ore
Reserves.

 
 
LEI: 213800YOEO5OQ72G2R82

 

 
 
Contacts

Please direct all enquiries to media.enquiries@riotinto.com

 

 

 

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This announcement is authorised for release to the market by Andy Hodges, Rio
Tinto's Group Company Secretary.

 

 

 

riotinto.com

 

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