Rio Tinto unveils lithium resource at Rincon project

Rio Tinto (ASX, LON, NYSE: RIO) has released its initial mineral resource and ore reserve estimates for the Rincon lithium project in Argentina, marking a significant milestone in its push to become a leader producer of the battery metal.The world’s second largest miner said the asset holds substantial lithium brine deposits, with measured resources of 1.54 million tonnes of lithium carbonate equivalent (LCE), 7.85 million tonnes of indicated resources, and 2.29 million tonnes of inferred resources. Probable ore reserves stand at 2.07 million tonnes of LCE.Acquired in 2022 for $825 million, Rincon is located in the heart of the lithium triangle in Argentina’s Salta Province, an emerging hub for greenfield projects. The asset is projected to produce 53,000 tonnes of battery-grade lithium carbonate annually over a 40-year mine life, with plans to expand production to 60,000 tonnes per year. Rio Tinto also plans to build a pilot lithium carbonate plant with an annual capacity of 3,000 tonnes, backed by a $350 million investment.The project has already delivered its first lithium output, with initial battery-grade production expected in 2025, pending a final investment decision for full-scale operations by year-end.Rio Tinto’s chief executive Jakob Stausholm emphasized the company’s goal of expanding its lithium business. Alongside the Rincon development, Rio is pursuing the acquisition of Arcadium (ASX: LTM)(NYSE: ALTM), a move that could solidify its position as one of the world’s three largest lithium miners, behind only US-based Albemarle (NYSE: ALB) and Chile’s SQM (NYSE: SQM).If finalized by mid-2025 as expected, the acquisition would bolster Rio’s portfolio with assets in Argentina, Australia, and processing facilities in the US, China, Japan, and the UK.The company’s customer base already includes major automotive players such as Tesla, BMW, and General Motors, aligning with its ambitions to cater to the rapidly growing demand for electric vehicle batteries.Gaining market shareRio Tinto has steadily expanded its presence in the lithium market over the past six years. In 2021, the company began lithium production from waste rock at its borates mine in California, showcasing an innovative approach to resource utilization.The miner is simultaneously working to revive its $2.4 billion Jadar lithium project in Serbia, which could become Europe’s largest lithium mine with annual production of 58,000 tonnes of battery-grade lithium carbonate. Jadar faces significant hurdles, including a recent parliamentary debate on a proposal to ban lithium and borate mining in the country. If passed into a law, this would effectively put an end to the contested Jadar project, despite Serbia’s recent reinstatement of Rio’s mining license.The Jadar operation could provide enough lithium to power one million electric vehicles annually and meet 90% of Europe’s current lithium demand, underscoring its strategic importance to the global energy transition.Rio Tinto’s activities align with a broader industry trend as mining giants race to secure their place in the burgeoning electric vehicle (EV) and renewable energy markets.Weiter zum vollständigen Artikel bei Mining.com Weiter zum vollständigen Artikel bei Mining.com