Rio Tinto's Argentina Lithium Project Receives RIGI Approval

Written by Amir Richani for Industrial Info Resources (Sugar Land, Texas)--The Argentine government has approved the first lithium project under the Incentive Regime for Large Investment (RIGI) program, opening the door to more developments.

Based on articles from local media, a government official announced during the Argentina International Mining Exhibition that Rio Tinto's (London, England) Rincon lithium project has been approved under the RIGI.

Local newspaper Infobae reported that Daniel Gonzalez, energy and mining coordinator under the Ministry of Economy, said that the administration of President Javier Milei has given a green light to adhere the US$2.5 billion project to the RIGI.

The Rincon project is expected to have a production capacity of 60,000 tons of battery-grade lithium carbonate per year with first production expected by 2028, followed by a three-year output ramp-up. The mine will have a 40-year life cycle.

The Australian miner already has lithium operations in Argentina following the acquisition of Arcadium Lithium earlier this year, which granted the company access to prime lithium operations and projects in Argentina and made it a top lithium producer.

Rincon would represent the first mining project approved under the RIGI, and it has offered hopes to other mining companies that have submitted applications to receive RIGI approval for their developments.

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Argentina is increasingly attracting more international attention to its lithium sector, given its vast lithium resources, which are among the world's largest. At the same time, the national government in Buenos Aires has launched new programs to usher in more investments to further develop its industries.

Last year, Javier Milei's government announced the creation of the RIGI, which aims to attract major investments to the country in exchange for legal and fiscal benefits. The minimum investment to qualify for the RIGI is US$200 million for mining projects. However, investments above the US$2 billion mark qualify as Long-Term Strategic Export projects, which receive even greater benefits. This month, the Southern Energy consortium, composed of YPF (NYSE:YPF) (Buenos Aires, Argentina), Pan American and others, also received RIGI approval to construct a liquefied natural gas terminal to export Vaca Muerta's increasing natural gas production. Subscribers to the GMI Project Database can can learn more by viewing the related project report.

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