Rio Tinto inks lithium deal as chief resigns

Rio Tinto is forming a joint venture with Codelco to operate a lithium project in Salar de Maricunga. It comes as the ASX-listed miner prepares to bid farewell to its chief executive.

Rio Tinto said the lithium project will help cement it as a leading supplier of materials critical to the energy transition.

Salar de Maricunga is a large lithium-containing resource base in the Atacama region with the potential for scalable, long-life and low-cost production, it explained, adding that its brine has one of the highest average grades of lithium content in the world.

Rio Tinto will own 49.99% of Salar de Maricunga SpA by funding studies and development costs.

It will invest US$35 million into the company for further studies and development, and then US$500 million once a decision is made to pursue the project. This will be spent on construction. A further US$50 million will be invested if the project delivers its first lithium by 2030 end.

Rio Tinto chief executive Jakob Stausholm said: "We are honoured to be chosen as Codelco's partner to deliver a world class project using Direct Lithium Extraction technology in the Salar de Maricunga, leveraging our expertise as a leading producer of lithium for the global market. Developing this significant lithium resource will deliver further value-adding growth in our portfolio of critical minerals essential for the energy transition."

"Codelco is a strategic partner for Rio Tinto in Chile, with this agreement building on our copper joint ventures. We aim to bring significant investment and long-term benefits to the Atacama region as we advance Maricunga and Nuevo Cobre together, with a focus on responsible sustainable development including shared infrastructure and solutions to minimise water usage."

Meantime, Codelco chair Máximo Pacheco said: "This project continues our lithium diversification strategy, which is essential for the energy transition, with a world-class partner in Rio Tinto that represents the most attractive option for Codelco and the country. We are happy and proud to strengthen our partnership with a company of Rio Tinto's prestige, and we warmly welcome it as a partner in this important project for Chile."

Just days after, Stausholm announced his intention to step down as Rio Tinto's chief executive.

Stausholm joined in 2018 as chief financial officer and was promoted to the top job in January 2021 after the Juukan Gorge scandal led to the resignations of several executives, including the chief. He will continue in the role until a successor is appointed.

Commenting, Rio Tinto said Stausholm has aligned Rio Tinto to the "opportunities of the energy transition and shaped a pathway to a decade of profitable growth."

"Under Jakob's leadership, Rio Tinto has restored trust with key stakeholders, aligned our portfolio with the commodities where demand growth is strongest, built a diverse and talented management team, and set a compelling growth trajectory," Rio Tinto chair Domenic Barton said.

"Our focus on these things is undiminished and our strategic priorities are unchanged. This is a natural moment to appoint Jakob's successor, as we look ahead to our next phase in which we will double down to deliver greater operational performance to realise the full potential of our assets. I would like to thank Jakob for his significant contribution to Rio Tinto at a critical time in its evolution."