Latest news with #MáximoPacheco
Yahoo
20-05-2025
- Business
- Yahoo
Rio Tinto Expands Lithium Push With $900 Million Maricunga Deal
Diversified global miner Rio Tinto (NYSE:RIO) has made the next significant step into battery metals, committing $900 million for a 49.99% stake in Chile's Salar de Maricunga, a world-class lithium project controlled by the Chilean state-owned miner Codelco. "We are honoured to be chosen as Codelco's partner to deliver a world-class project using direct lithium extraction technology in the Salar de Maricunga," Rio Tinto's CEO Jakob Stausholm said Monday. "Codelco is a strategic partner for Rio Tinto in Chile... we aim to bring significant investment and long-term benefits to the Atacama region as we advance Maricunga and Nuevo Cobre together." The Salar de Maricunga, located in Chile's Atacama region, is one of the world's highest-grade undeveloped lithium brine resources and holds the potential for scalable, long-life, low-cost production. The joint venture plans to use direct lithium extraction technology to boost efficiency and reduce environmental impact, particularly regarding water usage, a critical issue in the arid zone like Northern Chile. As part of the deal, Rio Tinto will make an initial $350 million investment to support feasibility studies and resource evaluations needed for a final investment decision. If the project proceeds to construction, another $500 million will be injected, and a $50 million bonus payment will be made if lithium production begins by the end of 2030. Codelco Chairman Máximo Pacheco noted the deal's strategic importance for Chile's energy future. "This project continues our lithium diversification strategy, which is essential for the energy transition, with a world-class partner in Rio Tinto that represents the most attractive option for Codelco and the country," he said. The investment marks Rio Tinto's latest expansion into South American lithium after acquiring Arcadium Lithium for $6.7 billion last year. The new partnership in Chile deepens Rio's regional presence and strengthens its role as a global lithium player. While Rio's lithium ambitions are growing, market conditions remain subdued, prompting sector leaders like Albemarle to pause the $1.3 billion US plant project. In Q1 2025, lithium prices hit four-year lows, driven by global oversupply and weaker-than-expected electric vehicle demand. "We're expecting this year for the market to remain in surplus," Adam Webb, head of battery raw materials at Benchmark Mineral Intelligence, said per INN. Webb noted that current price levels, around $10,400 per metric ton, are unsustainable, with about a third of global producers operating at a loss. However, from 2026 onward, the market is forecast to tip into deficit. Long-term projections suggest a 12–15% compound annual growth rate for lithium demand, with prices expected to rebound to support new supply development, ultimately driven by expanding EV and energy storage sectors. Price Action: RIO share traded lower by 0.43% to $62.12 premarket at the last check Tuesday. Read Next:Photo by Juan Roballo via Shutterstock Up Next: Transform your trading with Benzinga Edge's one-of-a-kind market trade ideas and tools. Click now to access unique insights that can set you ahead in today's competitive market. Get the latest stock analysis from Benzinga? This article Rio Tinto Expands Lithium Push With $900 Million Maricunga Deal originally appeared on © 2025 Benzinga does not provide investment advice. All rights reserved.
Yahoo
14-05-2025
- Business
- Yahoo
Codelco signs agreement with I-Pulse to explore advanced mining technologies
Codelco, the Chilean state-owned mining company, has signed a letter of intent (LOI) with I-Pulse to explore disruptive pulsed power solutions in mining. This agreement signifies the commencement of a strategic partnership focused on promoting the development and implementation of innovative and sustainable solutions for the mining sector. The partnership is set to explore the use of pulsed power for applications such as rock fragmentation and precision drilling, aiming to address the challenges faced by large-scale mining operations. These challenges include the handling of older deposits, lower ore grades and increasing global demand in the context of the energy transition. Codelco chairman of the Board of Directors Máximo Pacheco said: 'This alliance reflects our commitment to innovation as a driver of more efficient and responsible mining. 'The possibility of incorporating capabilities like those of I-Pulse, which can revolutionise key processes such as rock fragmentation, is fully aligned with our vision for the future of Codelco and our goal of being a pillar of sustainable development in Chile and the world.' In a related development, Codelco announced an exploration agreement with BHP for its Anillo property in the Antofagasta Region. The collaboration is subject to the requirements of Law 19,137, which governs Codelco's partnerships on non-operational or non-expansion mining projects. Furthermore, Codelco has announced a new collaboration with Rio Tinto to potentially develop the mining district around Nuevo Cobre in Chile's Atacama Region. Nuevo Cobre is a joint venture between Rio Tinto and Codelco, with the former holding a 57.74% stake and the latter 42.26%. The agreement between Rio Tinto and Codelco includes the formation of a joint committee and equal funding to conduct preliminary conceptual studies over an initial 12-month period, which can be extended. Last month, Codelco signed an agreement to provide copper concentrates to the Adani Group's $1.2bn (Rs102.47bn) smelter, referred to as Kutch Copper, located in Gujarat, India. "Codelco signs agreement with I-Pulse to explore advanced mining technologies" was originally created and published by Mining Technology, a GlobalData owned brand. The information on this site has been included in good faith for general informational purposes only. It is not intended to amount to advice on which you should rely, and we give no representation, warranty or guarantee, whether express or implied as to its accuracy or completeness. You must obtain professional or specialist advice before taking, or refraining from, any action on the basis of the content on our site.
