By Joe Hoppe

 

Rio Tinto PLC said Tuesday that it has agreed to buy the Rincon lithium project in Argentina from Rincon Mining for $825 million, strengthening its global energy transition portfolio.

The mining company said the project--purchased from Rincon, a company owned by funds managed by private equity group Sentient Equity Partners--is a long life, scalable resource capable of producing battery grade lithium carbonate, and is set to complete in the first half of 2022 subject to regulatory approval.

The project is an undeveloped lithium brine project in Salta Province, a hub for greenfield projects. It has the potential to have one of the lowest carbon footprints in the industry, the company said.

"This acquisition is strongly aligned with our strategy to prioritise growth capital in commodities that support decarbonisation and to continue to deliver attractive returns to shareholders," Chief Executive Jakob Stausholm said.

Once acquired, studies to confirm the resources will be carried out and work will be undertaken to determine development strategies and timing, along with ensuring environmental, social and governmental compliance.

 

Write to Joe Hoppe at joseph.hoppe@wsj.com

 

(END) Dow Jones Newswires

December 21, 2021 12:29 ET (17:29 GMT)

Copyright (c) 2021 Dow Jones & Company, Inc.
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