A federal government agency is loaning Rio Tinto $US275 million for the development of its Argentinian lithium mine, as the miner’s Ravensthorpe battery metals mine remains mothballed
A federal government agency is loaning Rio Tinto $US275 million for the development of its Argentinian lithium mine, as the miner’s Ravensthorpe battery metals mine remains mothballed
Export Finance Australia has signed a financing facility for $US275 million (about $AU385 million) towards the development of Rio Tinto’s $US2.5 billion Rincon lithium project in Argentina.
Rio has secured $US1.18 billion worth of financing for the critical minerals asset from four international lenders; being the EFA, International Finance Corporation, IDB Invest and the Japan Bank for International Cooperation.
The federal government lender billed its support as directly supporting Australian suppliers to participate in the Rincon project and to provide the equipment, technology, and specialised engineering services required.
The taxpayer support for the overseas critical minerals project comes as Rio Tinto’s local Mt Cattlin lithium mine near Ravensthorpe remains on care and maintenance, after it succumbed to weak market conditions in 2024 under different ownership.
Rio picked up the Mt Cattlin hard rock lithium mine in the $10 billion acquisition of global miner Arcadium Lithium in late 2024, but the iron ore heavyweight's main interest was in the “lithium triangle” assets in Argentina, being the Rincon project.
Just months prior to the deal being announced, Arcadium revealed it would transition Mt Cattlin to care and maintenance, a move which impacted the 300 workers in the region that counts mining as a major industry.
The announcement of the mine being shuttered came just six months after First Quantum Minerals revealed it would mothball its nickel mine. Those two mines collectively employed 400 local residents and their closures sent shock waves through the region.
Rio has since mulled underground development at the lithium asset but rumours have also swirled around the mine being considered to be offloaded, after The Australian reported Rio had surrendered exploration tenements across Western Australia.
Now under Rio's ownership, Rincon is expected to produce 60,000 tonnes per annum of battery grade lithium carbonate over a 40-year mine life, with first production tipped for 2028.
Commenting on the financing haul, Rio chief executive aluminium & lithium Jerome Pecresse said proceeds from the funding would support development of the $US2.5 billion project.
“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,” he said.
EFA chief executive John Hopkins said the lender played an important role in enabling Australian businesses to compete globally.
“Supporting Australian suppliers to participate in major export opportunities like Rincón strengthens capability and competitiveness,” he said.
Mt Cattlin remaining on care and maintenance comes as other Western Australian lithium producers, PLS and Mineral Resources, are moving on or mulling restarting their assets that were shelved amid the lithium price rout.
PLS Group recently made the call to revive its mothballed Ngungaju lithium processing plant amid a modest rebound in prices, while MinRes is similarly considering a restart of its mothballed Bald Hill lithium mine.
