Rio Tinto PLC Rio Tinto to acquire Rincon Mining lithium project (3978W)
December 21 2021 - 10:59AM
UK Regulatory
TIDMRIO
RNS Number : 3978W
Rio Tinto PLC
21 December 2021
21 December 2021
Rio Tinto to acquire Rincon Mining lithium project
Rio Tinto has entered into a binding agreement to acquire the
Rincon lithium project[1] 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
battery-grade 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 in
Argentina and Lithium Extraction Technologies (Australia) Pty which
holds certain intellectual property which may be applied in
conjunction with lithium projects.
Contacts Please direct all enquiries to media.enquiries@riotinto.com
Media Relations, UK Media Relations, Australia
Illtud Harri Jonathan Rose
M +44 7920 503 600 M +61 447 028 913
David Outhwaite Matt Chambers
M +44 7787 597 493 M +61 433 525 739
Media Relations, Americas Jesse Riseborough
Matthew Klar M +61 436 653 412
T +1 514 608 4429 Investor Relations, Australia
Investor Relations, UK Natalie Worley
Menno Sanderse M +61 409 210 462
M: +44 7825 195 178 Amar Jambaa
David Ovington M +61 472 865 948
M +44 7920 010 978
Clare Peever
M +44 7788 967 877
Rio Tinto plc Rio Tinto Limited
6 St James's Square Level 7, 360 Collins Street
London SW1Y 4AD Melbourne 3000
United Kingdom Australia
T +61 3 9283 3333
Registered in Australia
T +44 20 7781 2000 ABN 96 004 458 404
Registered in England
No. 719885
This announcement is authorised for release to the market by
Steve Allen, Rio Tinto's Group Company Secretary.
riotinto.com
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