In a major win for Argentina’s mining industry, the government has approved a $2.5 billion lithium mining venture by global mining giant Rio Tinto — the first to receive approval under the country’s new investment incentive program.
The Rincon lithium project, located in the Salta province of northern Argentina, was officially cleared under the RIGI scheme (Investment Incentive Regime for Large Investments), a framework designed to draw significant foreign investment through tax breaks and legal guarantees.
“This is big news,” said Daniel Gonzalez, secretary of mining and energy coordination, during a mining conference Tuesday in Buenos Aires. According to U.S. News & World Report, the announcement follows months of industry concern over bureaucratic delays and uncertainty surrounding the new approval process.
“There was a lot of tension about what was happening with the RIGI program,” added Roberto Cacciola, head of Argentina’s mining chamber (CAEM). “The sector was waiting for clarity, and this approval brings some of that.”
The move aligns with President Javier Milei’s broader strategy to open Argentina’s economy and boost foreign reserves as the country continues to battle high inflation and fiscal challenges.
Argentina ranks as the world’s fourth-largest supplier of lithium — a critical component in batteries for electric vehicles, smartphones and other technology. Together with Chile and Bolivia, Argentina is part of the “lithium triangle,” which contains the world’s largest known reserves of the metal.
Despite high hopes, progress under the RIGI scheme has been slow. Rio Tinto’s project is the first of seven mining proposals to win approval since the program’s launch nine months ago. Applications from companies such as China’s Ganfeng Lithium, Canada’s McEwen Copper and South Korea’s Posco remain under review, despite the law requiring a response within 45 days.
Industry sources say administrative hurdles, rather than reluctance by the government, have contributed to the delays. “The approval process is complex and involves multiple departments,” one source said. “Some companies may have submitted proposals before meeting all the necessary criteria.”
Under RIGI, approved projects receive tax and customs benefits, legal stability guarantees and international arbitration rights — protections seen as vital by foreign investors.
Last year, Argentina exported $4.8 billion in minerals, mainly gold, with silver and lithium following. With copper projects also in development, industry leaders hope Rio Tinto’s approval signals fresh momentum for a sector expected to help stabilize Argentina’s fragile economy.
