RIO announcement today will rattle some S.A. Salar Chemical...

RIO announcement today will rattle some S.A. Salar Chemical Companies cages. -

Rio Tinto to acquire Rincon Mining lithium project
Rio Tinto has entered into a binding agreement to acquire the Rincon lithium project1 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 batterygrade 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, which owns the Salar del Rincón Project i