Latest news with #Maricunga
Reuters
23-05-2025
- Business
- Reuters
Chile's ENAMI says lithium venture with Rio Tinto to start production in 2032
SANTIAGO, May 23 (Reuters) - Chile's state-run mining firm ENAMI aims for its new Rio Tinto lithium partnership at Altoandinos to begin production in 2032 with 35,000 metric tons of the battery metal per year, and ramp up over three years to 75,000 tons, ENAMI company chief Ivan Mlynarz said on Friday. The Altoandinos project, as well as the Maricunga project that Rio Tinto (RIO.L), opens new tab, ( opens new tab was tapped this week to spearhead alongside state-run copper producer Codelco, will give the global miner a critical role in Chile's lithium industry alongside long-established players SQM ( opens new tab and Albemarle (ALB.N), opens new tab. Rio Tinto will initially put forward $425 million to the project, which ENAMI said will require a total investment of $3 billion. ENAMI previously estimated the Altoandinos project capacity to be 60,000 tons a year, before new studies showed more resources than expected, particularly at the La Isla salt flat. Mlynarz said ENAMI plans for the project to start with direct lithium extraction (DLE), an innovative method that has yet to be used in Chile, and that Rio Tinto is testing at its Rincon project in Argentina. ENAMI has begun testing DLE options from various companies, and Mlynarz said early results from Rio Tinto's technology look promising, paving the way for its potential use on the project. "The results have been encouraging with Rio Tinto, and it has the advantage of having the operator use their own technology," Mlynarz said. He added that the partnership needed approval from international regulatory agencies, but that ENAMI in the meantime would continue exploration studies, with the hope that Rio Tinto will take the lead in 2026. "We need to keep working in the salt flat because both ENAMI and Rio Tinto know that timing is key," Mlynarz said.
CNA
21-05-2025
- Business
- CNA
Rio Tinto's Chile deal is a bet on unproven tech and lithium price bounce
SANTIAGO : Global miner Rio Tinto will tackle one of the biggest technological challenges in the lithium industry as it takes the lead in Chile's first major project involving the battery metal in years, alongside state-run copper producer Codelco. Maricunga marks a new pivot in Rio's lithium ambitions and a turning point for Chile, which will add a third project extracting the metal used in electric vehicles after decades of stagnation in the sector. Rio will own just under half of the project, but will spearhead design, construction, operation and sales, Codelco announced on Monday. A major challenge is deploying new technology, called direct lithium extraction, to separate lithium from salty brine liquid that is meant to be more environmentally friendly and efficient than conventional methods, industry experts say. The method has yet to be proven widely in the industry and has never been used in Chile at commercial scale. The technical challenge at Maricunga, one of the world's most lithium-rich salt flats, comes against a backdrop of uncertainty for lithium prices, which have fallen nearly 90 per cent since late 2022 due to oversupply and weak demand for EVs. "Scaling it in line with global demand timelines remains uncertain," said Nicole Porcile, a partner at mining consulting firm Anagea. "The ability to deliver at scale, efficiently and reliably will be a decisive factor in the project's competitiveness and investor confidence." Rio has a DLE pilot plant at its Rincon project in Argentina, and recently acquired U.S.-based Arcadium, which employs a mix of DLE and traditional extraction methods. That DLE know-how gave Rio an edge over three final competitors to partner with Codelco, said a person familiar with the deal. Still, Rio and Codelco must now hammer out which kind of DLE will work sustainably and effectively at Maricunga. "That's certainly the goal: to develop and operate this in the most environmentally friendly manner possible because Codelco is well aware that they'll be under the microscope," the person said. Codelco's search for a Maricunga investor attracted Middle Eastern, Chinese and Western companies, the person added. Construction is expected to start in three to five years, once environmental permits are updated. Codelco has proposed a gradual transition to DLE, but Rio Tinto is aiming to use DLE from the start, with lower costs relative to other DLE projects, said a second person familiar with the matter. ARGENTINA EXPERIENCE Rio Tinto told Reuters its Argentina experience provided strong footing for future projects. "We are therefore confident in the application of our technology to Maricunga and potentially to other lithium salt flats in Chile," a spokesperson said. Rio will spend up to $900 million on the project. It is the only major mining company to bet heavily on lithium, accelerating its push with a second deal in six months at a time of low market prices. "We have not heard from investors that they want to see further investment in lithium," said analysts at RBC Capital Markets in a note. Rio is also in the running for Chile's Altoandinos lithium project controlled by state mining body ENAMI, which expects to announce a partner by the end of May. The process is independent from Maricunga, in which Codelco hired investment bank Rothschild to scout for candidates. Codelco, meanwhile, is set to soon close a deal to partner with Chile's SQM at the Atacama salt flat. Benchmark Minerals analyst Federico Gay noted that Rio and Codelco will have to carefully prioritize. "Too many fronts (are) open for both companies, in a moment when justifying large investments for lithium is challenging." Rio Tinto, which could be granted an intellectual property permit if its DLE technology is used for the project, will hold a majority of seats on a technical committee with Codelco, and move to a 50-50 split once production begins, according to a filing with Chile's financial regulator.
Reuters
21-05-2025
- Business
- Reuters
Rio Tinto's Chile deal is a bet on unproven tech and lithium price bounce
SANTIAGO, May 21 (Reuters) - Global miner Rio Tinto (RIO.L), opens new tab, ( opens new tab will tackle one of the biggest technological challenges in the lithium industry as it takes the lead in Chile's first major project involving the battery metal in years, alongside state-run copper producer Codelco. Maricunga marks a new pivot in Rio's lithium ambitions and a turning point for Chile, which will add a third project extracting the metal used in electric vehicles after decades of stagnation in the sector. Rio will own just under half of the project, but will spearhead design, construction, operation and sales, Codelco announced on Monday. A major challenge is deploying new technology, called direct lithium extraction, to separate lithium from salty brine liquid that is meant to be more environmentally friendly and efficient than conventional methods, industry experts say. The method has yet to be proven widely in the industry and has never been used in Chile at commercial scale. The technical challenge at Maricunga, one of the world's most lithium-rich salt flats, comes against a backdrop of uncertainty for lithium prices, which have fallen nearly 90% since late 2022 due to oversupply and weak demand for EVs. "Scaling it in line with global demand timelines remains uncertain," said Nicole Porcile, a partner at mining consulting firm Anagea. "The ability to deliver at scale, efficiently and reliably will be a decisive factor in the project's competitiveness and investor confidence." Rio has a DLE pilot plant at its Rincon project in Argentina, and recently acquired U.S.-based Arcadium, which employs a mix of DLE and traditional extraction methods. That DLE know-how gave Rio an edge over three final competitors to partner with Codelco, said a person familiar with the deal. Still, Rio and Codelco must now hammer out which kind of DLE will work sustainably and effectively at Maricunga. "That's certainly the goal: to develop and operate this in the most environmentally friendly manner possible because Codelco is well aware that they'll be under the microscope," the person said. Codelco's search for a Maricunga investor attracted Middle Eastern, Chinese and Western companies, the person added. Construction is expected to start in three to five years, once environmental permits are updated. Codelco has proposed a gradual transition to DLE, but Rio Tinto is aiming to use DLE from the start, with lower costs relative to other DLE projects, said a second person familiar with the matter. Rio Tinto told Reuters its Argentina experience provided strong footing for future projects. "We are therefore confident in the application of our technology to Maricunga and potentially to other lithium salt flats in Chile," a spokesperson said. Rio will spend up to $900 million on the project. It is the only major mining company to bet heavily on lithium, accelerating its push with a second deal in six months at a time of low market prices. "We have not heard from investors that they want to see further investment in lithium," said analysts at RBC Capital Markets in a note. Rio is also in the running for Chile's Altoandinos lithium project controlled by state mining body ENAMI, which expects to announce a partner by the end of May. The process is independent from Maricunga, in which Codelco hired investment bank Rothschild to scout for candidates. Codelco, meanwhile, is set to soon close a deal to partner with Chile's SQM at the Atacama salt flat. Benchmark Minerals analyst Federico Gay noted that Rio and Codelco will have to carefully prioritize. "Too many fronts (are) open for both companies, in a moment when justifying large investments for lithium is challenging." Rio Tinto, which could be granted an intellectual property permit if its DLE technology is used for the project, will hold a majority of seats on a technical committee with Codelco, and move to a 50-50 split once production begins, according to a filing with Chile's financial regulator.
Reuters
19-05-2025
- Business
- Reuters
Chile's Codelco taps Rio Tinto for major new lithium tie-up
SANTIAGO, May 19 (Reuters) - Chile's Codelco will partner with global mining giant Rio Tinto ( opens new tab for its new Maricunga lithium project, the state miner said on Monday, bringing a major new player into the sector in the world's second largest producer of the EV battery metal. The partnership, after a selection process, means Rio Tinto will become just the third major private firm in Chile's lithium sector, joining Chile's SQM and U.S. firm Albemarle, who have dominated production of the metal there for years. Rio Tinto will contribute up to $900 million to the project, Codelco said in a statement, taking a 49.99% share. State miner Codelco, tasked with spearheading the Chilean state's recent push into the sector, will control the remainder. The financing is slated to include $350 million when the deal closes, $500 million when a final investment decision is made, and $50 million if commercial production is reached by the end of 2030. The board for the partnership will consist of three members appointed by Codelco, and two appointed by Rio Tinto, Codelco said.
