Rio Tinto has secured approval for its $2.5bn lithium mining project in Argentina's Salta province, becoming the first mining venture to win backing under the government's Large Investment Incentive Regime (RIGI). Daniel Gonzalez, mining and energy coordination secretary, announced the decision at a Buenos Aires conference on May 20.

"We are grateful because there was strong anxiety over what was happening with the mining RIGIs," said Roberto Cacciola, head of Argentina's CAEM mining chamber, as per Reuters. "This was major news."

The development aligns with Rio Tinto’s strategy to intensify its lithium focus, particularly across Argentina, Bolivia, and Chile. The RIGI framework provides tax and customs benefits, access to international arbitration, and long-term stability plans designed to attract foreign investment.

As recently reported by bne Intellinews, Canadian miner McEwen Copper is also advancing one of Latin America's most ambitious copper projects in Los Azules in cooperation with Stellantis and Rio Tinto, banking on President Javier Milei's signature business-friendly reforms to unlock Argentina's mining potential.

"We have applied for RIGI in February, the authorities are evaluating our project and we are optimistic about the approval," McEwen Copper vice-president Michael Meding told bne Intellinews.

After more than a decade of being stifled by strict currency and capital controls, the country's nascent mining revival is now gathering momentum under Milei's RIGI. The scheme, which aims to attract much-needed foreign investment, includes a reduction of corporate tax rates from 35% to 25%, a reduction of tax on dividends from 7% to 3.5%, removal of export duties, and faster VAT recovery – important since most VAT is 21%. It also provides for total freedom to import and export, all this in the frame of a thirty-year stability. 

The RIGI covers eight key sectors: industrial forestry, tourism, infrastructure, mining, technology, steel, energy, and oil and gas. It also includes Long Term Strategic Export projects aimed at positioning Argentina as a reliable supplier in global markets where it currently has low participation.

Rio Tinto's landmark approval signals a potential turning point for Argentina's mining sector, which has struggled to attract significant investment amid economic instability. However, the success of RIGI will ultimately depend on the government's ability to maintain policy consistency and address ongoing concerns about regulatory delays that have previously deterred international investors.