Rio Tinto ( ASX:RIO,NYSE:RIO,LSE:RIO) released an initial mineral resources and ore reserves report for its 100 percent owned Argentina-based Rincon project on Wednesday (December 4).
Mineral resources inclusive of ore reserves comprise 1.54 million tonnes of lithium carbonate equivalent in the measured category, with 7.75 million tonnes in the indicated category and 2.29 million tonnes in the inferred category.
Probable ore reserves are made up of 2.07 million tonnes of lithium carbonate equivalent.
Rincon was acquired by Rio Tinto from Rincon Mining in March 2022. It is located in the Lithium Triangle of Argentina’s Salta province, which hosts more than half of the world’s lithium reserves.
A feasibility study for the property outlines full-scale production of approximately 53,000 tonnes of battery-grade lithium carbonate annually over a 40 year mine life. Subject to permitting, Rio Tinto plans to expand production at the site to 60,000 tonnes per year via debottlenecking and improvement programs.
The company expects to make a final investment decision on full-scale operations at Rincon toward the end of 2024.
A pilot battery-grade lithium carbonate plant with a capacity of 3,000 tonnes is currently in development. According to the company, it is scheduled for completion in the first half of 2025.
Argentina’s lithium reserves are the third largest in the world, standing at 3.6 million tonnes. The country is also the fourth largest lithium producer in the world, producing 9,600 tonnes of the metal in 2023.
Securities Disclosure: I, Gabrielle de la Cruz, hold no direct investment interest in any company mentioned in this article.