The $2.5 billion Rio Tinto Lithium Mining Project has been Approved by Argentina

According to Daniel Gonzalez, Secretary of Mining and Energy Coordination, Argentina has authorized a $2.5 billion lithium mining project by Rio Tinto Group (NYSE:RIO), the first mining approval under the nation’s RIGI investment incentive program. The Rincon project, in Salta province, attempts to profit from Argentina’s large lithium reserves while also increasing foreign currency inflows in the face of economic constraints. At the moment, Argentina is the fourth-largest producer of lithium globally.

Aerial view of an open pit mine, with workers extracting minerals.

For investors, the RIGI scheme provides long-term regulatory stability, access to international arbitration, and tax and customs benefits. The market is worried about bureaucratic delays since, out of seven proposals, Rio Tinto Group (NYSE:RIO)’s project is the only one approved during the program’s nine-month existence.

The head of the mining chamber CAEM, Roberto Cacciola, stressed the significance of this permission while pointing out industry concerns over delayed progress. Despite the rule’s 45-day resolution deadline, five lithium projects and two for gold and copper are still pending judgments for other applicants, including Ganfeng of China, McEwen Copper of Canada, and Posco of South Korea. Mining is a top priority for President Javier Milei’s administration to stabilize an economy plagued by inflation. Gold, silver, and lithium were the top three minerals that Argentina exported last year, totaling $4.8 billion.

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