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Rio Tinto pays as much as $900mn for a close to 50 per cent stake in Chile’s Maricunga lithium challenge, marking the most important overseas funding within the sector since Santiago semi-nationalised its lithium mining business two years in the past.
In distinction to different diversified mining corporations like BHP and Anglo American, Rio is investing closely in lithium, a crucial mineral and a key ingredient in lithium-ion batteries, though costs for the steel have slumped amid a provide glut.
The Maricunga salt flat is the second-largest lithium reserve in Chile, and comprises among the highest-grade lithium brines on the earth. Developed in partnership with state-owned copper firm Codelco, the challenge will likely be Chile’s first main lithium enterprise in additional than 40 years after mining started in its bigger Atacama salt flat within the Nineteen Eighties.
“This will likely be Chile’s first challenge exterior of the Atacama after years of delay within the sector because of political indecision,” stated Daniel Jimenez, founding accomplice of lithium consultancy iLiMarkets. “Rio Tinto is your best option of accomplice [for Codelco] for each the capital and knowhow they create.”
The challenge “assures Rio Tinto a really robust place in low-cost lithium property” after different latest investments, he added.
“Creating this important lithium useful resource will ship additional value-adding progress in our portfolio of crucial minerals important for the vitality transition,” stated Rio Tinto chief govt Jakob Stausholm in an announcement.
Rio will make investments as much as $900mn throughout a number of tranches because the challenge reaches developmental milestones, in change for a 49.99 per cent stake within the challenge, which is majority-owned by Codelco, the state-owned miner.
Final 12 months Rio spent $6.7bn to purchase US lithium producer Arcadium, and introduced a $2.5bn enlargement of its Rincon lithium challenge in Argentina.
Rio will be part of the present lithium miners in Chile — US-based Albemarle and Chile’s SQM.
Chile’s leftist authorities introduced in 2023 that every one new tasks in strategic lithium reserves can be majority owned by public corporations, in an effort to extend state management over pure sources.
