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News.com.au
4 days ago
- Business
- News.com.au
Cry? Argentina's laughing as companies flock to join its mining industry
Argentinean President Javier Milei's investment-friendly policies are helping draw mining companies This is combined with the lure of rich, yet underexplored ground across the country Minerals such as lithium, copper and gold are some of the big drawcards for explorers and miners alike Argentina is increasingly being seen as an attractive destination for resources investment, standing out even amongst the other well-endowed jurisdictions of South America. Regardless of how one might view maverick President Javier Milei, who swept to power in a landslide victory in December 2023, credit must go where credit is due. His economic reforms have certainly contributed to the creation of a more dynamic and business-friendly environment in the country. This includes the introduction of policies such as the Large Investment Incentive Regime (RIGI) that offers tax, customs, and exchange rate benefits for investments of more than US$200 million. One key beneficiary of this policy is Rio Tinto's US$2.5bn Rincon project in the Rincón Salt Flat, Salta, which will include a processing plant capable of producing up to 60,000tpa of battery-grade lithium carbonate. Other miners and explorers are taking note. 'Argentina is really positioning itself as a top-tier mining destination and this is something that largely wasn't there ten years ago,' Pursuit Minerals (ASX:PUR) managing director Aaron Revelle told Stockhead. 'The Milei government has really opened up the country, and they started that with the oil and gas sector. They've now really moved that into mining.' He also pointed to the 30-year Fiscal Stability Guarantee under the Mining Investment Act that covers exploration through to project maturity and really enhances the long-term investment security as another positive factor. 'There's also growing global governance and transparency standards,' Revelle added. 'Argentina now enjoys the strong support of the IMF, which is another key reason why it's such an attractive mining destination. 'Milei's very well received despite his eccentric nature across a lot of governments, especially in Latin America. 'He's showing that Argentina is tired of the old Peronist rule. People want jobs, they want lower taxes, they want lower costs of living, and I think his policies are really giving him a good standing there.' Rich mineral bounty Argentina's transformation isn't all thanks to Milei though. It has been one of the top three performers in the region since 2018 and has regularly outperformed both Chile and Bolivia, the other two prongs of the famous Lithium Triangle, thanks to having the most attractive tax code. This has contributed to the 77.1% increase in exploration expenditures between 2021 and 2023 to US$427m. It also owes a large part of this growth to its vast strategic mineral resouces. 'Argentina holds the third largest lithium reserves globally as part of the famed lithium triangle alongside Chile and Bolivia,' Revelle added. 'You look at the emergence of copper, you know, which is becoming a juggernaut there. Taca Taca in the Salta province, but also the Filo del Sol project up in San Juan. 'Then looking at other commodities – gold. (In) Santa Cruz, you've got Cerro Negro, a famed tier-1 Newmont deposit.' More importantly for junior explorers such as Pursuit, Argentina remains largely underexplored. Challenger Gold (ASX:CEL) managing director Kris Knauer agrees, telling Stockhead that Argentina doesn't just have attractive geology. It is also very immature compared to jurisdictions like Chile or Ecuador. Argentina also benefits from a high-quality, skilled mining workforce that's readily available. That's on top of significant infrastructure, with well-established road, rail and ports across its mining regions as well as stable access to electricity and water. Revelle points out that the individual provinces control mining rights. The Federal Government's key role is its courting of direct foreign investment. 'There are several major provinces that are constantly flying the flag, with their governors regularly attending PDAC to attract investment,' he added. This combination of business friendly policies, mineral riches and available infrastructure has led major miners such BHP, Lundin, Ganfeng and Eramet to make significant investments in the country. ASX players Given all the advantages, there's certainly no shortage of ASX-listed companies operating in Argentina. Pursuit is focused on its Rio Grande Sur lithium project that has a resource of 1.104Mt lithium carbonate equivalent. It's doubled down on Argentina, with the company recently divesting its WA gold prospects and is evaluating other opportunities in the country. 'There's plenty of opportunity, and we're seeing some amazing prospects that may not have actually been there or available to us five to ten years ago in terms of political constraints or things like that,' Revelle said. 'Over the next 12 months, we will look at Argentina and the lithium market, which we think will eventually rebound and come back as demand continues to grow. 'If there was an exceptional opportunity in South America we would potentially look at it, but for us we are very comfortable in lithium, very comfortable in Argentina, and really just developing opportunities within the country. We expect the country to continue to grow." Revelle didn't discount other minerals, noting that gold, copper and silver are very prospective in Argentina. The company recently produced high-purity lithium carbonate samples from its 250tpa pilot plant using synthetic brine chemically identical to that of the Rio Grande Sur lithium project. To enhance product quality and simulate potential refinement steps at commercial scale, a portion of this material was further treated at bench scale using fractional crystallisation (FX) and ion exchange (IX) techniques. These post processing steps upgraded the product to 99.5% purity, meeting established benchmarks for technical-grade lithium carbonate. Samples will be used by potential partners for product qualification and assessment purposes, representing a critical milestone in Pursuit's commercial strategy. Challenger Gold is focused primarily on its Hualilan gold project in Argentina's San Juan province that has a resource of 2.9Moz of gold with a high-grade core of 1.6Moz at 5g/t gold. In June 2025, the company unveiled a toll treatment PFS that outlined attractive returns, despite using conservative spot prices of US$2500/oz for gold and US$27.50/oz for silver. The three-year toll milling strategy delivers an estimated EBITDA of A$136 million, a post-tax NPV of US$50.5 million, and cumulative post-tax free cash flow of US$56.7 million. Using a gold price of US$3300/oz, a touch below spot, this EBITDA increases to A$221 million. The toll mining operation is based on just 3% of project's current resource and requires a modest upfront capital investment of just US$8.9 million (A$13.8m), with a rapid payback period expected by December 2025, only three months after mining begins. Mining will be focused on three shallow open pits producing 465,000 wet metric tonnes of mineralised material, with an average mined grade of 6.2g/t gold and 35g/t silver. A production target of 76,600oz payable gold and 338,500oz silver has been set out with a life-of-mine strip ratio of 6:1 and a forecast mining cost of US$8.12/t. Ore will be hauled 165km on a sealed highway to the fully permitted Casposo plant, where recoveries of 84.4% gold and 65.7% silver are expected. Knauer said the company will cross a number of milestones by the end of the year. 'There'll be first drill and blast, first mining, first processing of all, first cash flow, that's all by the end of this year. That will happen in the next five months,' he said. 'You will also see some infill drilling results from the higher grade pits there as part of that, but really for us the next five months is about executing and delivering cash flow and producing gold.' This initial toll milling operation will effectively 'bootstrap' the company into the larger operation, likely to come into focus in early 2026. 'You'll have a ... study showing what the larger project now looks like and the scale of it, which will be in the first quarter next year,' he added. The broader project is already fully permitted and has the first EIA approved in San Juan gold mining for over 10 years. An EIA amendment is needed for trucking the ore to the toll mill, along with an explosives approval for drill and blast contractor Orica, with Knauer saying time frames have been as expected. On the copper front, Belararox (ASX:BRX) operates the Toro-Malambo-Tambo (TMT) project down the road from BHP and Lundin's Filo Del Sol copper deposit, recently revealed to be among the largest global copper finds of the past 30 years in a hint the underexplored Vicuna border region of Argentina and Chile could host more tier-1 copper projects. Recent Phase 1 drilling tested two of several high priority target areas with the Tambo South target returning wide and continuous anomalous copper zones. Geological interpretation has indicated multiple intrusions with varying extents of copper mineralisation with suggestions that the upper parts of the copper porphyry target have been tested successfully. A magnetotellurics geophysical survey is planned at Toro South and Tambo to characterise the most prospective zones for follow-up drilling. American Salars (CSE:USLI) acquired the Cauchari Ines 01 lithium brine project in May 2025. The project covers about 1235 hectares over part of the 2550km2 Cauchari Salt Lake basin – a proven producing salar – and is known to contain lithium concentrations, with sampling returning up to 383ppm lithium from a depth of 30cm below the salt crust. It is located about 13km from Rio Tinto's Rincon salar – an approved US$2.5 billion development that will eventually export 60,000tpa of lithium carbonate – and about 80km from the town of San Antonio de Los Cobres with access provided by existing mining tracks and roads. There is also immediate proximity to railroads, electricity and gas pipelines. Cauchari Ines 01 sits within a known geological district with significant lithium and potassium sampling and is near the San Antonio de los Cobres and Pocitos industrial centre. Mineralisation in the Cauchari Salar include borates, sulphates, carbonates and brines rich in lithium, potassium, boron and rare earths. Significant concentrations of lithium were determined in brines from the Cauchari Salt Lake area at the northern end of the company's claim boundary.
Cision Canada
6 days ago
- Business
- Cision Canada
Lithium South Strengthens the Development Team and Fast-tracks HMN Project Feasibility
VANCOUVER, BC, July 23, 2025 /CNW/ -- Lithium South Development Corporation (the "Company" or "Lithium South") (TSX-V: LIS) (OTCQB: LISMF) (Frankfurt: OGPQ) is pleased to announce the appointment of Claudio C. Zalewski as Director of Development & Construction for the Hombre Muerto North ("HMN") Lithium Project (the "Project") in Argentina's Salta basin. Based in Salta, Mr. Zalewski is a bilingual civil engineer (BSc Civil Engineering, Universidad de Buenos Aires, 1981) with more than forty years of project-delivery experience, including: Project Director – Pastos Grandes Lithium Project (US $450 M) Engineering & Home-Office Construction Manager – Centenario Lithium Project (US $550 M) Consultant - ADY Resources Rincon Lithium Project, located on the Rincon salar in Salta Province. "Joining Lithium South at this pivotal moment lets me bring decades of lithium-brine experience to unlock the full value of the Hombre Muerto North Lithium Project. With the groundwork already in place, I'm confident we can reach feasibility swiftly and move toward construction alongside committed funding partners," said Claudio C. Zalewski, Director of Development & Construction. Fast-track Work Plan Underway Together with the COO, Mr. Zalewsky has prioritized four workstreams documented in the project register: DFS Tender Package – draft ready for bidder issue Design Criteria – consolidated discipline bases of design CAPEX/OPEX & Financial Models – templates 70 % populated Project Execution Plan & Procedures – Revision A under internal review Lithium South is working to complete a comprehensive development schedule covering every stage from Feasibility Study award through construction and commissioning, reinforcing the target to launch the Feasibility Study tendering before end-Q3 2025 and deliver full Feasibility by late Q1 2026. New Tax and Import Regulations / RIGI Welcomed by LIS Recent changes to tax and import regulations in Argentina are welcomed by Lithium South. Argentina's Régimen de Incentivo a las Grandes Inversiones (RIGI), created under Law 27.742 (July 2024), grants eligible projects (> US $200 M) a 30-year stability regime on tax, customs and FX rules and a flat 25 % corporate income-tax rate, alongside accelerated depreciation, VAT/import-duty relief and phased export-duty reductions. This new regime is expected to significantly impact the feasibility of the HMN Li Project in a very positive way. Project Option The Company is pleased to announce it has arranged the Purchase Option of the Hydra X 1 and Hydra X 2 claim blocks located near the Company holdings on the Hombre Muerto Salar. The two projects total approximately 5,555 hectares and increase the Company holdings within the Project area to over 10,000 hectares. Terms for the Purchase Option are a purchase price of US$2 Million payable upon the commencement of construction of the Project, or the sale of the Project and/or Company. The Purchase Option is at arms- length for the Company. Project Discussion Update The Company is in discussions with several O.E.M., mining and financial groups for the funding and development of the HMN Li Project. The discussions announced in January of 2025 are still ongoing though the party noted is now out of the exclusivity period. While the market remains challenging, interest in the high quality HMN Li Project remains strong. About Lithium South Development Corp. Lithium South owns 100% of the HMN Li Project located in Salta and Catamarca Provinces, Argentina, in the heart of the lithium triangle. The Salar del Hombre Muerto has a history of lithium production, with Rio Tinto Lithium (Formerly Arcadium Lithium and recently purchased by Rio Tinto Corporation for US$6.7 billion in March 2025) in operation to the south of the HMN Li Project for over twenty-five years. The HMN Li Project is adjacent to the east with a U.S. billion-dollar lithium development by POSCO (Korea), now in lithium production. Exploration work to date has delineated a NI 43-101 compliant 1,583,200 tonne Lithium Carbonate Equivalent ("LCE") Resource at an average grade of 736 miligrams per liter lithium (mg/L Li ) , with 1,463,000 tonnes in the measured category and 120,000 tonnes in the indicated category, at a cutoff grade of 500 mg/l Li (Note 1 below) on the Alba Sabrina, Natalia Maria, and Tramo claim blocks, three of five non-contiguous blocks that make up the HMN Li Project (View Report: A recent Preliminary Economic Assessment (Note 2 below) April 30, 2024, delineates potential to develop a 15,600 tonne per year lithium carbonate project. LIS is now moving the project forward to a Feasibility Study. On behalf of the Board of Directors Adrian F. C. Hobkirk President and Chief Executive Officer Investors / Shareholders call 855-415-8100 / website: The contents of this press release and the scientific information contained herein were reviewed by Mr. William Feyerabend, CPG, a Consulting Geologist and a Qualified Person under N.I. 43-101. Mr. Feyerabend participated in the writing of this press release and approves the content. Neither the TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release. The TSX Venture Exchange has not reviewed the content of this news release and therefore does not accept responsibility or liability for the adequacy or accuracy of the contents of this news release. Note 1: A report titled, Updated Mineral Resource Estimate – Hombre Muerto North Project, NI 43-101 Technical Report Catamarca and Salta, Argentina, Mark King, PhD, PGeo, Peter Ehren, MAusIMM, September 5th, 2023. Note 2: The report titled, N.I. 43-101 Preliminary Economic Assessment Hombre Muerto North Lithium Project, Salta, Argentina, was completed by Knight Piesold Consulting and JDS Energy and Mining Inc., and on SEDAR April 30, 2024 This news release contains certain "forward-looking statements" within the meaning of Section 21E of the United States Securities and Exchange Act of 1934, as amended. Except for statements of historical fact relating to the Company, certain information contained herein constitutes forward-looking statements. Forward-looking statements are based upon opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors which could cause actual results to differ materially from those projected in the forward-looking statements. The reader is cautioned not to place undue reliance on forward- looking statements. We seek safe harbor.
Yahoo
22-05-2025
- Business
- Yahoo
Argentina green-lights Rio Tinto's $2.5bn lithium project under RIGI incentive scheme
Argentina's Government has officially approved Rio Tinto's $2.5bn (2.86trn pesos) Rincon lithium mining project, the first mining project under the newly established RIGI investment incentive regime, reported Reuters. The Rincon project is situated in Salar Del Rincón, Salta province, Argentina. The approval announcement was made by Daniel Gonzalez, the country's Mining and Energy Coordination Secretary, at a conference in Buenos Aires. The mining sector in Argentina had been voicing concerns regarding the prolonged approval process for seven projects that were submitted since the RIGI programme's launch nine months ago. The RIGI framework aims to offer tax and customs advantages, access to international arbitration for disputes and long-term stability plans. Other companies that have applied for the RIGI programme include China's Ganfeng, Canada's McEwen Copper and South Korea's Posco. Of these, five are lithium projects, with the remaining two focused on gold and copper. Despite regulations stipulating a decision within a maximum of 45 working days, only Rio Tinto's project has been approved to date. Industry insiders suggest that the government did not intend to delay the process but was navigating complex approval procedures across various state departments. Some companies may have also submitted premature applications that did not meet the necessary criteria. Argentina CAEM mining chamber head Roberto Cacciola said: "We are grateful because there was strong anxiety over what was happening with the mining RIGIs. This was major news." The libertarian government led by President Javier Milei is aiming to bolster Argentina's mining industry to attract foreign currency and maintain economic stability amidst high inflation rates. As the fourth-largest lithium supplier globally, Argentina, alongside Chile and Bolivia, is part of the 'lithium triangle', which has the largest reserves of the metal essential for electronics and electric vehicles. Argentina is not only a significant exporter of gold and silver but is also anticipating the development of substantial copper projects. However, as of now, none of the copper projects are in production. Last year, Argentina's mineral exports amounted to $4.8bn, with gold leading the way, followed by silver and lithium. In February 2025, Worley was selected as the lead integration delivery partner for the Rincon lithium project. "Argentina green-lights Rio Tinto's $2.5bn lithium project under RIGI incentive scheme" 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.
Yahoo
22-05-2025
- Business
- Yahoo
The $2.5 billion Rio Tinto Lithium Mining Project has been Approved by Argentina
According to Daniel Gonzalez, Secretary of Mining and Energy Coordination, Argentina has authorized a $2.5 billion lithium mining project by Rio Tinto Group (NYSE:RIO), the first mining approval under the nation's RIGI investment incentive program. The Rincon project, in Salta province, attempts to profit from Argentina's large lithium reserves while also increasing foreign currency inflows in the face of economic constraints. At the moment, Argentina is the fourth-largest producer of lithium globally. Aerial view of an open pit mine, with workers extracting minerals. For investors, the RIGI scheme provides long-term regulatory stability, access to international arbitration, and tax and customs benefits. The market is worried about bureaucratic delays since, out of seven proposals, Rio Tinto Group (NYSE:RIO)'s project is the only one approved during the program's nine-month existence. The head of the mining chamber CAEM, Roberto Cacciola, stressed the significance of this permission while pointing out industry concerns over delayed progress. Despite the rule's 45-day resolution deadline, five lithium projects and two for gold and copper are still pending judgments for other applicants, including Ganfeng of China, McEwen Copper of Canada, and Posco of South Korea. Mining is a top priority for President Javier Milei's administration to stabilize an economy plagued by inflation. Gold, silver, and lithium were the top three minerals that Argentina exported last year, totaling $4.8 billion. While we acknowledge the potential of RIO to grow, our conviction lies in the belief that some AI stocks hold greater promise for delivering higher returns and have limited downside risk. If you are looking for an AI stock that is more promising than RIO and that has 100x upside potential, check out our report about this READ NEXT: and . Sign in to access your portfolio
The Star
21-05-2025
- Business
- The Star
Argentina approves US$2.5bil Rio Tinto lithium mining project
President Javier Milei's libertarian government is looking to boost the South American country's mining sector to bring in much-needed foreign currency. — Reuters BUENOS AIRES: Argentina's government has approved a US$2.5bil lithium mining project by Anglo-Australian giant Rio Tinto, marking the first mining project under a new investment incentive regime. The approval of Rio Tinto's Rincon project, located in the northern Salta province, under the Incentive Regime for Large Investments (RIGI) programme was announced by the country's Mining and Energy Coordination secretary Daniel Gonzalez at a conference in the capital Buenos Aires. Argentina's mining sector has expressed concerns over delays in approvals for seven projects submitted to the government since the RIGI programme was launched nine months ago. 'We are grateful because there was strong anxiety over what was happening with the mining RIGIs,' the head of Argentina's Chamber of Mining Companies, Roberto Cacciola, told the conference. 'This was major news.' President Javier Milei's libertarian government is looking to boost the South American country's mining sector to bring in much-needed foreign currency and maintain economic stability as the country faces painful inflation levels. Argentina is the world's No. 4 lithium supplier and together with Chile and Bolivia forms the so-called 'lithium triangle' that holds the world's largest reserves of the white metal used in electronics, electric vehicles and other key technologies. The South American nation also exports gold and silver, and has major copper projects in the pipeline, though none are currently producing. Other firms that applied for mining projects under the RIGI programme include China's Ganfeng, Canada's McEwen Copper and South Korea's Posco. Five of the projects are for lithium, while the remaining two are for gold and copper, respectively. However, only Rio Tinto's project was approved as of Tuesday, despite a rule that a decision must be made in a maximum of 45 working days. Industry sources said the government likely did not intend to cause delays, but was facing complex approval processes involving various state departments and some companies may have rushed to apply at too early a stage to meet the criteria. The RIGI framework is intended to provide tax and customs benefits, access to international arbitration in case of disputes and long-term stability plans. Argentina exported US$4.8bil of minerals last year, mostly gold, followed by shipments of silver and lithium. — Reuters
