Exar, which operates in Jujuy, received approval from the Project Evaluation Committee of the Large Investment Incentive Regime (RIGI) for the expansion of its project in Cauchari-Olaroz. The news was celebrated as a milestone for both the mining sector and the province, as it will enable the advancement of a new plant that will increase production capacity to reach 85,000 tonnes per year of lithium carbonate, incorporating direct lithium extraction (DLE) technology.
By Panorama Minero
Exar, Argentina’s leading lithium carbonate producer, announced the approval by the Evaluation Committee of the Large Investment Incentive Regime (RIGI), representing the first benefit of this type granted in Jujuy, aimed at expanding its operation in Cauchari-Olaroz.
Franco Mignacco, current Chairman of the Shareholders Committee, director of Lithium Argentina, and representative of the Mining Department of the Argentine Industrial Union (UIA), celebrated the announcement. “I am very pleased to celebrate during Mining Week, here in Jujuy, this news announced by the Minister of Economy, Luis Caputo, regarding the fact that both Mendoza and Jujuy were granted RIGI approval,” he stated.
He explained that the project application was submitted in December and that they had been awaiting the first RIGI approval for Jujuy. In that regard, he highlighted the provincial support for this tool promoted by the national government.
“I believe this is the path forward. Today there are US$42 billion submitted under the RIGI for mining alone, which demonstrates that it is one of the sectors with the greatest capacity to attract investment. Jujuy could not remain outside of this. Given the country’s mining potential, we clearly had to be part of it,” he affirmed.
The approval will allow the company to move forward with a 45,000-tonne annual expansion, reaching a total production capacity of 85,000 tonnes per year.
Currently, 91% of Exar’s expenditures are allocated to the domestic market, promoting the development of more than 820 suppliers and generating around 2,000 direct and indirect jobs in Jujuy and the rest of the country.
Mignacco also highlighted that there is another RIGI project submitted by a lithium-related company, and considered it essential to continue encouraging exploration in order to promote new developments that continue strengthening the mining industry.
For his part, Arturo Alejandro Pfister, Exar’s legal manager and president of the Mining Chamber of Jujuy, agreed that this is very positive news for the province.
“The committee of experts gave the green light to the RIGI submitted by Minera Exar to expand its capacity to 85,000 tonnes. Today we have a capacity of 40,000 tonnes, so this means more than doubling it. The planned investment is US$1.2 billion. These are very significant amounts, and having them arrive in Jujuy is a tremendous satisfaction, both as a person from Jujuy and from a company established here. The world continues to look at and invest in Jujuy,” he stated.
Pfister clarified that this is an investment to be executed progressively, with estimated timelines of at least five years and in stages. “This will mean more employment, more suppliers, doubling production capacity, and building a new plant, as already occurred in the initial stage,” he explained.
He assured that the expansion will also extend the project’s mine life, increase production, and generate greater royalty revenues for the province.
“Mining companies operating in Jujuy work under sustainable development criteria. That is non-negotiable and will continue to be so,” he affirmed.
When consulted regarding the technology to be incorporated in the expansion, Pfister explained that the lithium sector is advancing continuously. “Direct extraction is a more environmentally friendly method, and within that technology there are different variants, many of them developed by each company with proprietary processes,” he explained.
The initial announcement was made by Minister Caputo, while the company officially confirmed it through its president, Simón Pérez Alsina, on its official website. “This approval marks a key step for Exar and consolidates the path we have been developing in Jujuy with a long-term vision and under international standards. The approval of the RIGI reinforces our commitment to a responsible and transparent operation, aligned with the industry’s best practices,” the company stated in its official release.
Pérez Alsina added that this progress will allow for deeper engagement with neighboring communities and continued contributions to local development. “Our challenge is to continue growing sustainably, building shared value together with all stakeholders in the region,” he concluded.
