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Highlights

  • Joint Venture with Codelco: Rio Tinto has signed binding agreements with Chile’s Codelco to jointly develop the Salar de Maricunga lithium project.

  • Up to US$900 Million Investment: Rio Tinto will invest up to US$900 million (AU$1.4 billion) in project studies, development, and construction.

Shares of Rio Tinto Ltd (ASX:RIO) traded higher on Tuesday after the global mining giant announced a major development in its lithium strategy. The stock opened the day at AU$119.77, up 0.3% from Monday’s close of AU$119.46, following news of a significant joint venture in Chile.

Rio Tinto revealed that it has entered into binding joint venture agreements with Codelco, Chile’s state-owned copper company, to develop and operate a high-grade lithium project located in the Salar de Maricunga—one of the country’s premier lithium-rich salt flats.

Under the agreement, Rio Tinto will acquire a 49.99% interest in the project through funding studies and development expenses. Codelco will contribute its existing licenses and mining concessions within the Salar de Maricunga, which is recognised for its vast lithium reserves and high average lithium content.

The initial commitment from Rio Tinto involves an investment of US$350 million to conduct additional studies and resource analyses, advancing the project toward a final investment decision. If the decision is made to proceed, the miner will contribute a further US$500 million toward construction activities. A final tranche of US$50 million will be injected if the joint venture meets its target of first lithium production by the end of 2030.

Any additional capital needs will be financed by both partners according to their respective ownership percentages in the venture.

Management indicated that the partnership aligns with Rio Tinto’s strategy of expanding its critical minerals portfolio, vital for supporting the global shift towards cleaner energy solutions.

Rio Tinto CEO Jakob Stausholm commented on the agreement, saying:

“Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition.”

He also highlighted the strategic nature of the partnership with Codelco, noting that it builds on their existing copper joint ventures in Chile.

The Salar de Maricunga project is seen as one of the most promising undeveloped lithium resources globally. Its brine reportedly contains some of the highest average grades of lithium found anywhere, potentially making it a low-cost and long-life asset.