On December 21, 2021, Rio Tinto announced that it would acquire Rincon Mining Pty and its Salt Lake lithium project in Argentina for $825 million. The company is owned by Australian private Equity fund Sentient Equity Partners.
The acquisition demonstrates Rio tinto's commitment to the battery minerals Industry fund and to strengthening its global energy transition portfolio.
As the underlying assets are held by an Argentine subsidiary of the Australian company, the transaction needs approval from the Committee for Foreign Investors of Australia (FIRB) and is expected to close in the first half of 2022.
After completion of the acquisition, Rio tinto will continue to push ahead with resource assessment and submit JORC standard reports. Rio tinto will further determine the future development plan and schedule, complete the renewal of the approved environmental impact assessment permit, and maintain close communication with the Argentine government, the Provincial government of Salta and the local community.
Rio already owns the Jadar salt lake project in Serbia, and the acquisition will formally enter South America's Lithium Triangle, one of the world's hottest lithium salt lake investments.
Just two days earlier, Rio announced that Dominic Barton, retiring as Canada's ambassador to China, would become its next chairman, taking up his post as a director in April and chairman in May.
Rio's personnel changes and acquisition reflect the two drivers of mining investment today: Chinese demand and the development of the battery energy market.
