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LONDON - Rio Tinto ($109.35B market cap), a prominent player in the metals & mining industry with a strong financial health rating according to InvestingPro, has signed a binding agreement with Chilean state-owned mining company Empresa Nacional de Minería (ENAMI) to form a joint venture for developing the Salares Altoandinos lithium project in Chile’s Atacama region, according to a press release statement.
Under the agreement, Rio Tinto will acquire a controlling 51% interest in the project and provide up to $425 million in cash and non-cash contributions, including its Direct Lithium Extraction (DLE) Technology. The cash contributions will include staged spending to sole fund the pre-feasibility study and further studies, subject to the joint venture progressing through investment stage-gates. With its moderate debt levels and strong cash flows, Rio Tinto maintains a healthy 6.93% dividend yield while trading at an attractive P/E ratio of 9.03.
The transaction is expected to close in the first half of 2026, pending regulatory approvals and satisfaction of customary closing conditions.
The binding agreement follows Rio Tinto’s nomination as the preferred partner for the project, which was announced on May 23, 2025.
"The Salares Altoandinos project represents a significant opportunity to develop a large-scale, long-life, low-cost lithium brine resource," said Rio Tinto Minerals Chief Executive Sinead Kaufmann.
The Salares Altoandinos project is part of Rio Tinto’s strategy to build a lithium portfolio to position itself in the supply of critical minerals for the energy transition.
In other recent news, Rio Tinto has announced a significant investment in its Isle-Maligne hydroelectric power plant in Alma, Quebec, committing US$1.2 billion to modernize the facility. This project represents the company’s largest investment in hydroelectric assets since the 1950s and aims to support low-carbon aluminum production in the region. Additionally, Rio Tinto is collaborating with Chile’s state-owned Codelco to form a joint venture for the development of the Salar de Maricunga lithium project in Chile, with a planned investment of $350 million for initial studies and resource analysis. In Canada, Rio Tinto is investing CA$7.6 million in a project to test ore sorting technology at its Lac Tio mine in Quebec, which could enhance operational efficiency and reduce emissions. Meanwhile, Berenberg has downgraded Rio Tinto from Buy to Hold, citing concerns over iron ore prices as a factor. In other analyst activity, Goldman Sachs has added ING Groep NV, LVMH Moet-Hennessy Louis Vuitton, and Atlas Copco to its European Conviction List, though these are not formal ratings. These developments highlight Rio Tinto’s strategic moves in energy and resource management, as well as the broader market’s shifting perspectives on key industry players.
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