Rio Tinto to Expand Argentina Rincon Lithium Mine

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Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--Rio Tinto (NYSE:RIO) (London, England) said Tuesday it will invest US$2.5 billion to develop its Rincon lithium mine in Argentina. The company plans to expand the initial 3,000 ton-per-year starter plant to 60,000 tons per year.

Construction is expected to begin by mid-2025, although the company still has to receive the required permits to start operations. The first production from the plant is projected for 2028, followed by a three-year ramp-up to full capacity.

The Rincon project is located in the lithium triangle in Argentina's northern province of Salta. The asset has a mine life of 40 years, and it contains measured resources of 1.54 million tons of lithium carbonate equivalent (LCE), 7.85 million tons of LCE in indicated resources, and 2.29 million tons of LCE in inferred resources.

"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 (environmental, social and governance) standards, leveraging our advanced technology to halve the amount of water used in processing," said Rio Tinto Chief Executive Officer Jakob Stausholm.

Industrial Info is tracking three projects tied to the development of the Rincon mine. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project and Plant databases can click here for the project reports and here for the plant profile.

Earlier this year, Rio Tinto's board agreed to acquire Arcadium Lithium (NYSE:ALTM) (Philadelphia, Pennsylvania) for US$6.7 billion. The transaction is expected to close next year, and it will place Rio Tinto among the world's largest lithium miners. For more information, see October 10, 2024, article - Rio Tinto to Acquire Arcadium Lithium for $6.7 Billion.

Based on data from the Argentine National Institute of Statistics and Census (INDEC), the country produced 6,862 tons of lithium carbonate in October, about 58% more than during the same month last year. Argentina produced 50,500 tons of lithium carbonate between January and October 2024. This is the result of the startup of new projects and capacity expansions.

Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 Trillion (USD).