6th Mar 2025 11:50
(Alliance News) - Rio Tinto PLC on Thursday said the acquisition of Arcadium Lithium PLC has been completed, as it also set out plans to invest USD1.8 billion to develop an extension of the Brockman mine in Western Australia.
The London-based miner said the investment will develop the Brockman Syncline 1 mine project and sustain production at its Pilbara iron ore operations.
Rio said the project has received all state and federal approvals in Australia, with the first ore scheduled for 2027, earlier than the original schedule of 2028.
The BS1 project will have the capacity to process up to 34 million tonnes of iron ore per year, using existing plants.
Rio noted that 1,000 jobs will be created during construction and it will sustain a workforce of around 600 once operational.
Rio said it also is continuing work on the pre-feasibility study for Rhodes Ridge, an undeveloped iron ore deposit which is targeting up to 40 million tonnes per year with the first ore by 2030.
Rio Tinto Iron Ore Chief Executive Simon Trott said: "Brockman 4 produced 43 million tonnes of iron ore in 2024. Securing this project extends the life of the Brockman hub. This is good for our business, good for Western Australia and good for the Australian economy."
Rio Tinto said it has completed the acquisition of Arcadium Lithium for USD6.7 million after receiving approval from the Royal Court of Jersey.
Arcadium Lithium will become Rio Tinto Lithium and include the Rincon lithium project, Rio Tinto said.
Rio said the acquisition establishes it as a "global leader in the supply of energy transition materials and as a major lithium producer".
It said Rio Tinto Lithium aims to grow the capacity of its tier one assets to over 200,000 tonnes per year of lithium carbonate equivalent by 2028.
"Complementary technologies and geographies offer compelling value driven by accelerating volume growth in a rising market, projecting significantly higher [earnings] and operating cash flow in the coming years," the company said.
Shareholders of New York-listed Arcadium Lithium will receive USD5.85 per share in cash.
Rio Chief Executive Officer Jakob Stausholm said: "Today we are delighted to welcome the employees of Arcadium to Rio Tinto. Together, we are accelerating our efforts to source, mine and produce minerals needed for the energy transition. By combining Rio Tinto's scale, financial strength, operational and project development experience with Arcadium's tier 1 assets, technical and commercial capabilities, we are creating a world-class lithium business which sits alongside our leading iron ore, aluminium and copper operations.
"We believe we are well-positioned to deliver the materials needed for the energy transition while maintaining our focus on respecting local communities, minimising environmental impacts and delivering value for shareholders and other stakeholders."
Shares in Rio Tinto were down 1.7% at 4,821.50 in London on Thursday morning.
By Michael Hennessey, Alliance News reporter
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