Rio Tinto has approved an earmark of $2.5 billion to expand the capacity of its Rincon lithium project in Argentina to 60,000 tonnes per year.
Rincon is the company’s first commercial-scale lithium operation; that capacity 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, 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.
“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,” said Rio Tinto Chief Executive Jakob Stausholm.
“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.”
Rincon, located in the heart of the ‘lithium triangle’ in Argentina, 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. Its ore reserves ended up being 60% higher than assumed at the time of acquisition.
Source: riotinto.com