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Time of India
20-05-2025
- Automotive
- Time of India
Chile lithium deal deepens Rio Tinto's push into 'white gold' EV metal
Chile's Codelco will partner with global mining giant Rio Tinto 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 means Rio Tinto will break into a sector dominated for years in Chile by local miner SQM and U.S. rival Albemarle Corp, as it seeks to deepen its still-young push into the coveted "white gold" metal. International miners, car makers and battery firms are eager to secure supply of lithium, an ultra-light metal needed to power the shift toward electric vehicles . South America's " lithium triangle " - in Chile, Argentina and Bolivia - has the world's largest trove of the metal. Rio Tinto will contribute up to $900 million in the deal to extract lithium from the Maricunga project in northern Chile, which has yet to be mined but is home to one of the world's highest concentrations of lithium in brine. Rio will take a 49.99per cent share in the venture. Codelco - the world's top copper producer, which Chile's government has tasked with spearheading the state's push into lithium - will control the rest. Rio Tinto CEO Jakob Stausholm said the company aims to "bring significant investment" to the region. He signaled opportunities to share infrastructure and minimize water use in tandem with the Nuevo Cobre copper exploration project in northern Chile that Rio already shares with Codelco. The state's partnership with one of the world's biggest miners gives heft to Chile's vision of expanding its lithium industry, analysts said. "This joint venture accelerates the country's strategic objective to reclaim leadership as the world's top lithium producer, while allowing Codelco to diversify its portfolio," said BTG Pactual analyst Cesar Perez. The South American country was the world's top producer until 2017, when Australia moved into first place. Executives and analysts have criticized efforts to open the industry to further investment as slow and hampered by red tape. RIO TINTO'S LITHIUM AMBITIONS The deal will see Rio contribute $350 million when the deal closes - expected to be in the first quarter next year - $500 million when a final investment decision is made, and $50 million if commercial production is reached by the end of 2030. "Rio has sought to accelerate building a South American lithium business from a starting position as a non-producer," J.P. Morgan said in a note, citing a $825 million deal for the Rincon lithium project in No. 4 producer Argentina in 2021. Rio Tinto last year tacked on a $6.7 billion acquisition of U.S. company Arcadium, which has several Argentina projects. "Rio's partnership with Codelco will expand its lithium footprint into Chile," said the J.P. Morgan note. Daniel Jimenez, a lithium consultant at iLiMarkets in Chile, said Rio Tinto can provide both capital and know-how from the Argentina sites. For Rio, it cements a wider regional strategy. "Through this partnership, Rio Tinto secures a competitive long-term position," Jimenez said. NEW TECHNOLOGY Codelco is also taking a stake in SQM's operations in the Atacama salt flat, which holds the world's highest concentration of lithium in brine. Just to the south, Maricunga ranks second. Remaining questions include how soon the firms can ramp up direct lithium extraction (DLE), which is intended to be quicker and more environmentally friendly than traditional methods that rely on evaporation to separate lithium from the salty brine liquid. Companies globally have struggled to pull off DLE at commercial scale, given technical complexities and the unique composition of each salt flat. In an earlier document announcing the project to potential bidders, Codelco said it was evaluating DLE use as of 2033. Codelco said the project attracted four binding offers, but did not name the other candidates.
Yahoo
19-05-2025
- Business
- Yahoo
Mining giants Codelco, Rio Tinto to develop major Chile lithium project
By Daina Beth Solomon and Fabian Cambero SANTIAGO (Reuters) -Chile's Codelco will partner with global mining giant Rio Tinto 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 private firm in Chile's lithium sector, alongside Chile's SQM and U.S. firm Albemarle that have dominated production there for years. Global mining firms, car makers and battery companies are racing to secure supply of lithium, an ultra-light metal needed to power the shift toward electric vehicles. South America's "lithium triangle" has the world's largest trove of the metal. Rio Tinto will contribute up to $900 million to the project, Codelco said in a statement, taking a 49.99% share. Codelco, the world's top copper producer now tasked with spearheading the Chilean state's push into lithium, will control the remainder. Rio Tinto CEO Jakob Stausholm in a statement said the company aimed to "bring significant investment" to the region. He noted there could be opportunities to share infrastructure and minimize water use in tandem with a copper exploration project, Nuevo Cobre, that it shares with Codelco in the same region. 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. Codelco, while a major player in copper, has little of its own experience mining lithium. Rio Tinto is meanwhile a major lithium player in neighboring Argentina, the world's fourth-largest producer of the metal, following its acquisition of lithium miner Arcadium. Rio Tinto is developing the Rincon project in Argentina as well, which will use direct lithium extraction (DLE), an innovative, mostly unproven method that Codelco and Rio Tinto aim to use at Maricunga too. Codelco Chairman Maximo Pacheco said the deal would be beneficial for its "lithium diversification strategy". The world's biggest copper producer is also teaming up with SQM for a controlling share of its operations in the Atacama salt flat.
Yahoo
12-05-2025
- Business
- Yahoo
Codelco and Rio Tinto ramp up efforts for Chile copper 'mining district'
SANTIAGO (Reuters) -Chilean copper producer Codelco and global miner Rio Tinto will jointly aim to create a copper "mining district" around their shared Nuevo Cobre project in the Atacama region of northern Chile, Codelco said on Monday. The new agreement establishes a joint committee and shared funding for preliminary studies for an initial 12-month period, with the possibility to be extended, Codelco said in a statement. It comes after the two companies in 2023 established the Nuevo Cobre project to carry out exploration in the area, a joint venture in which Codelco owns about 43%, and Rio Tinto about 58%. Codelco, the world's biggest copper producer, noted that the Nuevo Cobre project sits alongside its own San Antonio property. "The geological potential of the wider Atacama region and proximity of both projects present an opportunity to create a mining district," Codelco said. It added that the two companies will aim to "maximize the value" of the area, including through infrastructure. "It will make the most of our complementary experience and capabilities to drive exploration and development in a way that benefits the Atacama region," Rio Tinto CEO Jakob Stausholm said in the Codelco statement. Sign in to access your portfolio
Yahoo
12-05-2025
- Business
- Yahoo
Codelco and Rio Tinto ramp up efforts for 'mining district' in northern Chile
SANTIAGO (Reuters) - Chilean copper producer Codelco and global miner Rio Tinto have agreed to a new collaboration aimed at speeding up development of a mining district around their shared Nuevo Cobre project in the Atacama region of northern Chile, Codelco said on Monday. The agreement establishes a joint committee and shared funding for preliminary studies for an initial 12-month period, Codelco said in a statement.
