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China's Zijin Secures Incentives for Million-Dollar Lithium Project in Argentina
🇵🇾 Paraguay /Energy & Infrastructure

China's Zijin Secures Incentives for Million-Dollar Lithium Project in Argentina

From ABC Color · () Spanish

Translated from Spanish, summarized and contextualized by DistantNews.

At a glance

News Named sources Approved/passed
  • China's Zijin Mining has had its $709 million lithium project in Argentina approved under the Large Investment Incentives Regime (RIGI).
  • The project, located in Catamarca province, aims to produce 40,000 tons of lithium carbonate annually and is expected to create over 4,400 jobs.
  • Argentina is a major global player in lithium, ranking third in reserves and first in resources, with numerous projects in development.

A significant Chinese investment in Argentina's burgeoning lithium sector has received a crucial boost. Zijin Mining's $709 million project to develop the Tres Quebradas salt flat in Catamarca province has been admitted to Argentina's Large Investment Incentives Regime (RIGI), a program established in 2024 to attract major capital.

Argentine Minister of Economy, Luis Caputo, announced the approval, highlighting that the project, operated by Zijin subsidiary Liex, will focus on producing lithium carbonate. The facility is designed to yield 40,000 tons annually. The investment covers the construction and operation of extraction wells, purification systems, transport pipelines, and auxiliary industrial facilities. Caputo emphasized that the RIGI approval is projected to generate 4,406 direct and indirect jobs throughout the construction and operational phases.

According to company studies, the Tres Quebradas project holds sufficient resources for 19 years of production and is anticipated to generate approximately $400 million in annual export revenue. Admission to the RIGI grants the project significant benefits, including tax incentives, exemption from export duties, and the freedom to retain export earnings abroad. It also ensures 30 years of investment stability and access to international arbitration for dispute resolution.

Located 30 kilometers from the Chilean border and at an altitude of 4,200 meters, the Tres Quebradas project is part of Argentina's strategic push to expand its role in the global lithium market. Argentina is currently the world's fifth-largest lithium producer and holds the third-largest reserves globally, behind Chile and Australia. With 69 lithium projects at various stages of development, the country is poised to climb further in global production rankings, driven by its vast lithium resources.

This new RIGI approved will generate 4,406 direct and indirect jobs, between the construction and operation stages.

— Luis CaputoThe Argentine Minister of Economy highlighted the job creation potential of the Zijin Mining lithium project.
DistantNews Editorial

Originally published by ABC Color in Spanish. Translated, summarized, and contextualized by our editorial team with added local perspective. Read our editorial standards.

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