19th May 2025 17:28
(Alliance News) - Rio Tinto PLC late on Monday announced its binding agreement, with Corporacion Nacional Del Cobre de Chile or Codelco, to form a joint venture.
The JV, Rio Tinto said, will develop and operate a high-grade lithium project in the Salar de Maricunga in Chile.
"The agreement is the next step in a broader strategic partnership to strengthen both Rio Tinto's and Chile's positions as leading suppliers of materials for the global energy transition," the company commented.
Rio Tinto said it will fund studies and development costs in exchange for a 49.99% interest in Salar de Maricunga SpA, the firm through which Codelco holds its licenses and mining concessions in the Salar de Maricunga.
Its investment will comprise, firstly, USD350 million of initial funding towards additional studies and resource analysis to progress the project through to a final investment decision.
Secondly, Rio Tinto will invest USD500 million towards construction expenses, once a decision is made to proceed with the project.
This will be followed by an extra USD50 million if the JV is able to deliver first lithium by the end of 2030, and Rio Tinto said the partners "will fund further capital requirements in line with their share of ownership".
The Salar de Maricunga is a salt lagoon in the Atacama desert. Rio Tinto said the "large lithium-containing resource base" has "the potential for scalable, long-life and low-cost production".
The London-based mining group added: "Its brine has one of the highest average grades of lithium content in the world."
"We are honoured to be chosen as Codelco's partner to deliver a world class project using direct lithium extraction technology...leveraging our expertise as a leading producer of lithium for the global market," commented Rio Tinto Chief Executive Jakob Stausholm. "Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition."
Rio Tinto expects the transaction to close by the end of the first quarter in 2026, subject to regulatory approvals and other customary closing conditions.
Shares in Rio Tinto closed 1.6% lower at 4,600.50 pence in London on Monday.
By Emma Curzon, Alliance News reporter
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