REG - Rio Tinto - Rio Tinto to acquire Rincon Mining lithium project

Rio TintoAnnouncement

21/12/2021 17:00

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RNS Number : 3978W  Rio Tinto PLC  21 December 2021

 

 

21 December 2021

 

Rio Tinto to acquire Rincon Mining lithium project

Rio Tinto has entered into a binding agreement to acquire the Rincon lithium
project 1  in Argentina from Rincon Mining, a company owned by funds managed
by the private equity group Sentient Equity Partners, for $825 million.

 

The acquisition demonstrates Rio Tinto's commitment to build its battery
materials business and strengthen its portfolio for the global energy
transition.

 

Rincon is a large undeveloped lithium brine project located in the heart of
the lithium triangle in the Salta Province of Argentina, an emerging hub for
greenfield projects. The project is a long life, scaleable resource capable of
producing battery grade lithium carbonate. It has the potential to have one of
the lowest carbon footprints in the industry that can help deliver on Rio
Tinto's commitment to decarbonise its portfolio.

 

Rio Tinto Chief Executive Jakob Stausholm said "This acquisition is strongly
aligned with our strategy to prioritise growth capital in commodities that
support decarbonisation and to continue to deliver attractive returns to
shareholders. The Rincon project holds the potential to deliver a significant
new supply of battery-grade lithium carbonate, to capture the opportunity
offered by the rising demand driven by the global energy transition. It is
expected to be a long life, low-cost asset that will continue to build the
strength of our Battery Materials portfolio, with our combined lithium assets
spanning the US, Europe and South America."

 

Once acquired by Rio Tinto, the Rincon project will be subject to the
completion of studies to confirm the resource and define an Australasian Code
for Reporting of Exploration Results, Mineral Resources and Ore Reserves, 2012
(JORC Code) compliant resource statement. Work will be undertaken to determine
the development strategy and timing, secure updates to existing Environmental
Impact Assessment Permits to allow development and production, and undertake
ongoing engagement with communities, the province of Salta and the Government
of Argentina. This consultation process will ensure we build a world class
operation in the province of Salta.

 

The direct lithium extraction technology proposed for the project has the
potential to significantly increase lithium recoveries as compared to solar
evaporation ponds. A pilot plant is currently running at the site and further
work will focus on continuing to optimise the process and recoveries.

 

The market fundamentals for battery grade lithium carbonate are strong, with
lithium demand forecast to grow 25-35% per annum over the next decade with a
significant supply demand deficit expected from the second half of this
decade.

 

As the project is currently held through an Argentine branch of an Australian
company, completion of the transaction is conditional upon approval by
Australia's Foreign Investment Review Board (FIRB). Subject to this FIRB
approval, the transaction is expected to be completed in the first half of
2022.

 

 

 

 1  Rio Tinto has agreed to acquire Rincon Mining Pty Limited,
www.rinconmining.com (http://www.rinconmining.com) , which owns the Salar del
Rincón Project in Argentina and Lithium Extraction Technologies (Australia)
Pty which holds certain intellectual property which may be applied in
conjunction with lithium projects.

 

 

 

 

 

 

 

 

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

 

 Media Relations, UK         Media Relations, Australia

 Illtud Harri                Jonathan Rose

 M +44 7920 503 600          M +61 447 028 913

 David Outhwaite             Matt Chambers

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 Media Relations, Americas   Jesse Riseborough

 Matthew Klar                M +61 436 653 412

 T +1 514 608 4429

                             Investor Relations, Australia

 Investor Relations, UK      Natalie Worley

 Menno Sanderse              M +61 409 210 462

 M: +44 7825 195 178

                             Amar Jambaa

 David Ovington              M +61 472 865 948

 M +44 7920 010 978

 Clare Peever

 M +44 7788 967 877

 Rio Tinto plc               Rio Tinto Limited

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London SW1Y 4AD

United Kingdom             Melbourne 3000

 T +44 20 7781 2000          Australia

Registered in England

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                             T +61 3 9283 3333

                             Registered in Australia

                             ABN 96 004 458 404

 

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

 

riotinto.com

 

 

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