Rio Tinto Secures $1.175B Financing Package to Advance Rincon Lithium Project in Argentina
Diversified mining major Rio Tinto has secured a $1.175-billion financing package from four international lenders to support the development of its Rincon lithium project in Argentina.
The funding package includes loans from the International Finance Corporation, IDB Invest, Export Finance Australia, and the Japan Bank for International Cooperation.
The proceeds will help fund the $2.5-billion project, which is expected to produce around 60 000 tonnes a year of battery-grade lithium carbonate once fully operational.
Construction of the processing plant began last year and includes the expansion of the project camp and the development of key site infrastructure.
First production from the expanded Rincon operation is expected in 2028, followed by a three-year ramp-up period to reach full production capacity. The project is anticipated to have a mine life of approximately 40 years.
“This financing package broadens our funding sources for the Rincon project and supports the continued execution of our lithium growth pipeline, which is underpinned by the attractive long-term outlook driven by the energy transition,” said Jérôme Pécresse, CEO of Aluminium and Lithium at Rio Tinto.
“We appreciate the strong support from IFC, IDB Invest, Export Finance Australia and JBIC as we progress the Rincon project,” he added.
Meanwhile, Reuters reported this week that Rio Tinto had completed the first commercial shipment of lithium carbonate from the Rincon project.
The shipment consisted of about 200 tonnes of lithium carbonate produced at the project’s existing 3 000-tonne-a-year starter plant and was exported from the Port of Buenos Aires to Shanghai, China.
The starter plant represents the initial phase of the development and produces relatively small volumes while Rio Tinto continues construction of the larger expansion.
Once completed, the expanded facility is expected to add about 57 000 tonnes of additional annual capacity, bringing the project’s total targeted output to roughly 60 000 tonnes a year of battery-grade lithium carbonate.
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