Last week (5.19-5.23) overseas lithium news [SMM New Energy Overseas Weekly News]

[Rio Tinto and Codelco Collaborate on Lithium Project]

Rio Tinto and Codelco signed a binding agreement to establish a joint venture for the development and operation of a high-grade lithium project at the Maricunga Salt Lake in Chile.

This agreement is the next step in a broader strategic partnership aimed at strengthening the positions of Rio Tinto and Chile as major suppliers of materials for the global energy transition.

The Maricunga Salt Lake is a large lithium resource base in the Atacama region, with potential for scalable, long-life, and low-cost production. Its brine has one of the highest average lithium grades in the world.

Under the agreement, Rio Tinto will acquire a 49.99% stake in the Maricunga Salt Lake company, which holds Codelco's licenses and mining rights at the Maricunga Salt Lake, by funding research and development costs.

Rio Tinto will invest:

• $350 million in initial funding for further research and resource analysis to advance the project until the final investment decision.

• Once the decision to proceed is made, $500 million will be invested in the company for construction costs. These milestones, depending on further research, are expected to be achieved by the end of this decade. If the joint venture achieves its target of first lithium delivery by the end of 2030, $50 million will be invested in the company.

• Partners will provide further funding needs based on their shareholding in the joint venture.

• The joint venture will focus on deep engagement with local communities, support the development of infrastructure such as power and roads, and apply leading extraction, processing, and reinjection technologies to the project to maximize mineral recovery and minimize environmental impact.

The transaction is expected to be completed by the end of Q1, subject to obtaining all applicable regulatory approvals and meeting other customary closing conditions.

Source: junior mining network

[Arizona Lithium Approved to Launch Saskatchewan's First Lithium Brine Project]

Arizona Lithium (ASX: AZL) has received approval to commence the first phase of production at its Prairie Lithium Brine Project in Saskatchewan, the first such project in the province.

The permit granted by the provincial Department of Energy and Resources paves the way for the production of 150 mt of LCE annually using direct lithium extraction (DLE) technology.

Arizona Lithium's share price has fallen 40% this year, dropping to $0.6 per share in Sydney, reflecting multiple capital raises and share dilution to approximately 4.5 billion shares. The company's market capitalization is $27 million. This downturn is in line with broader issues in the lithium industry, including falling lithium prices and investor caution towards early-stage companies.

The LCE price plummeted from nearly $80,000/mt at the end of 2022 to less than $10,000/mt this year, a drop of 86%, due to supply surplus and weakening demand from EV manufacturers.

The project is located in the Williston Basin of Saskatchewan, using traditional oil and natural gas drilling and completion methods to extract lithium-rich brine from approximately 2.3 kilometers underground. The approval comes as momentum builds for lithium brine projects in the prairie region. EMP Metals (CSE: EMPS) is also advancing a lithium brine project in Saskatchewan, while E3 Lithium (TSXV: ETL) and Volt Lithium (TSXV: VLT) are conducting similar projects in neighboring Alberta.

The updated resource model based on data collected last year shows that Prairie's indicated resources have increased from 4.5 million mt LCE to 4.6 million mt LCE. The company stated that the annual producible indicated resources surged by 120%, from 7,700 mt LCE to 17,000 mt LCE.

Southeastern Saskatchewan in Canada boasts the highest-grade lithium brine in the country. The project reported an average lithium concentration of 98 mg per liter in its resource base, with some wells reaching as high as 259 mg per liter—the highest ever recorded in Canada.

Arizona Lithium is also advancing its Big Sandy Lithium Project in Arizona.

Source: mining.com

[Argentina Approves Rio Tinto's $2.5 Billion Lithium Mine Project]

The Argentine government on Tuesday approved a $2.5 billion lithium mine project by Anglo-Australian giant Rio Tinto, marking the first mining project approved under a new investment incentive mechanism.

The country's Mining and Energy Coordination Secretary, Daniel González, announced at a meeting in the capital Buenos Aires that Rio Tinto's Rincón project in the northern province of Salta has been approved under the RIGI incentive program.

Since the RIGI program was launched nine months ago, the Argentine mining sector has expressed concerns over delays in the approval of seven projects submitted to the government.

"We are grateful for this, as there has been strong anxiety regarding the RIGI situation in mining," said Roberto Cachola, head of the Argentine CAEM Mining Chamber, at the meeting. "This is significant news."

The government of libertarian President Javier Milei is seeking to boost the mining sector in the South American country to attract much-needed foreign currency and maintain economic stability, as the country faces painful levels of inflation.

Argentina is the world's fourth-largest lithium supplier, forming the so-called "Lithium Triangle" with Chile and Bolivia, and possesses the world's largest reserves of the white metal used in electronics, EVs, and other critical technologies. This South American country also exports gold and silver and has several significant copper mine projects in the pipeline, although none have yet commenced production.

Other companies applying for mining projects under the RIGI program include China's Ganfeng, Canada's McEwen Copper, and South Korea's POSCO.

Five of the projects are related to lithium mines, while the remaining two are focused on gold and copper mines. However, as of Tuesday, only Rio Tinto's project has been approved, despite regulations requiring decisions to be made within a maximum of 45 working days.

Source: mining.com

[Zimbabwe Lithium Exporters Seek to Delay Export Tax Until 2027]

Zimbabwean miners are urging the government to postpone the export tax on lithium concentrates until the country's refineries capable of producing higher-value products become operational.

The Zimbabwe Lithium Exporters Association, representing companies such as Chengxin Lithium Group, has requested the Ministry of Mines and Finance to delay the 5% tax aimed at promoting domestic refining industry development by two and a half years.

In recent years, Zimbabwe has rapidly become a key supplier of lithium concentrates to Chinese refineries following billions of dollars in investments by companies like Chengxin, Zhejiang Huayou Cobalt, and Sinomine Resource Group in developing mines in the country. According to relevant data, last year Zimbabwe supplied approximately 14% of China's lithium imports.

The Zimbabwe Lithium Exporters Association stated in a document seen by Bloomberg that the government considers lithium concentrates as unprocessed or "non-value-added" products and should suspend the export tax until the lithium sulfate production plant, expected to be completed and operational by 2027, is finished.

This higher-value product will then be shipped to China for further processing into battery-grade materials. The group also complained that Zimbabwe calculates the royalties companies should pay based on the higher-value lithium carbonate price rather than the price of the ore actually produced in the country.

Source: mining.com