Rio Tinto receives socio-environmental nod for Salar Rincón lithium project

Argentina’s Salta province approved the socio-environmental permit for Anglo-Australian miner Rio Tinto’s 3,000t/y lithium carbonate processing plant.

The permit allows Rio Tinto to prepare construction of the plant, which is part of the Salar Rincón project that the company acquired in 2022 for US$825mn.

Despite global and local macroeconomic complexities, Rio Tinto managed to push forward with work on a pilot plant, a landing strip, the preparation of studies for the operational phase and an exploration campaign to extend knowledge of the aquifer deposit last year, according to a corporate report published in October.

Local media reported that the project has a scalable profile and could produce around 50,000t/y of battery-grade lithium carbonate through direct extraction technology. To achieve this, a commercial plant is planned to be built in the next three to five years.

In December, Salar Rincón joined the federal special exchange regime under which companies can access the free currency exchange market and pay for financing or commercial debts contracted abroad.

The maximum amount stipulated for Rincón is US$1.24bn, while the positive balance on the exchange market would be around US$13.1bn until 2044, according to the central bank.

Salar Rincón comprises about 83,000ha and is 3,760m above sea level on the border with Chile, representing 90% of the basin, according to data from the provincial mining chamber.

Rio Tinto and Ford signed an MOU in 2022, which is part of the automaker’s strategy to secure inputs for electric vehicle batteries.

Initially, investment in Rincón was pegged at US$600mn, but rocketing inflation last year has pushed up spending on exploration, construction and assessment, Rio Tinto said in a report.