Buenos Aires: Argentina has granted approval to a $2.5 billion lithium mining initiative by Anglo-Australian mining giant Rio Tinto, marking the first project to advance under the country’s newly introduced investment incentive program, RIGI.
The Rincon lithium project, located in the northern Salta province, received the green light under the Regimen de Incentivo para Grandes Inversiones (RIGI), as confirmed by Argentina’s Secretary for Mining and Energy Coordination, Daniel Gonzalez, during a mining conference in Buenos Aires.
The mining sector had raised concerns over delays in the approval of seven projects submitted since RIGI was launched nine months ago. Roberto Cacciola, head of the Argentine Chamber of Mining Entrepreneurs (CAEM), welcomed the breakthrough, saying, “We are grateful because there was strong anxiety over what was happening with the mining RIGIs. This was major news.”
President Javier Milei’s libertarian administration is pushing for greater investment in mining to secure foreign currency inflows and combat persistent economic instability and inflation. The approval comes as a strategic step to strengthen Argentina’s position as a global lithium supplier.
Argentina ranks as the world’s fourth-largest producer of lithium and, together with Chile and Bolivia, forms the “lithium triangle” — home to the largest global reserves of the metal vital for electric vehicles, electronics, and renewable technologies.
Beyond lithium, Argentina also exports gold and silver and is developing significant copper projects, though none have entered production yet.
Companies such as China’s Ganfeng, Canada’s McEwen Copper, and South Korea’s Posco have submitted projects under the RIGI framework. Of the seven projects submitted, five are for lithium and the remaining two are for gold and copper. As of Tuesday, Rio Tinto’s Rincon project is the only one approved, despite the RIGI program mandating decisions within 45 working days.
Industry insiders suggest the delays are likely due to bureaucratic complexities and interdepartmental coordination, while some applications may have been submitted prematurely before meeting all eligibility requirements.
Reuters contacted several relevant government agencies for clarification, but no immediate response was received.
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The RIGI initiative offers tax and customs incentives, legal stability, and access to international arbitration in case of disputes. The program is seen as pivotal in attracting long-term investment in Argentina’s mining sector.
In 2024, Argentina exported $4.8 billion worth of minerals, led by gold, followed by silver and lithium.
