The national government approved the investment for the second phase of the Sal de Oro operation, the lithium project the company operates on the border between Salta and Catamarca.
South Korean company POSCO received approval from the national government to join the Incentive Regime for Large Investments (RIGI) with its second-phase expansion of the Sal de Oro lithium operation, securing a US$547 million investment in Argentina. The initiative includes the addition of a plant with the capacity to produce 23,000 tonnes per year of lithium carbonate equivalent (LCE), which will complement POSCO’s existing chemical facility at the Salar del Hombre Muerto, currently capable of producing 25,000 tonnes per year of lithium hydroxide.
By Panorama Minero
The announcement was made by Argentina’s Minister of Economy, Luis Caputo, who stated that the project could generate exports exceeding US$300 million per year. He also announced the inclusion of another project under the RIGI framework, the San Matías Gas Pipeline, which involves an investment of US$1.3 billion.
The Sal de Oro expansion, whose total CAPEX amounts to approximately US$633 million, will benefit from the fiscal, tax, customs, and foreign exchange stability offered by RIGI. With these guarantees, POSCO not only reinforces the diversification of its lithium production in Argentina but also strengthens its long-term growth strategy.
In addition, the company is advancing a process to become the owner of the Hombre Muerto Norte (HMN) project, located within the same salar as Sal de Oro. The acquisition will be completed through the purchase of 100% of the shares issued by NRG Metals, a current subsidiary of Lithium South and holder of the HMN mining concessions. As a result of the transaction, 99% of the company will be owned by POSCO Argentina, while the remaining 1% will belong to POSCO Holdings.
Last April, the company submitted an investment plan of approximately US$2 billion to the Government of Salta as part of the upcoming production phases and regulatory processes associated with its project at the Salar del Hombre Muerto.
In Phase 1, POSCO Argentina already operates Argentina’s first lithium hydroxide production plant, located in the General Güemes Industrial Park in Salta, where it is reaching maximum monthly production during the ramp-up stage. At the same time, Phase 2 is advancing with the construction of a lithium carbonate plant at the Salar del Hombre Muerto, scheduled for inauguration by the end of this year.
POSCO’s project also served as the catalyst for the creation of a cooperation zone between Salta and Catamarca, as it is located in an area where provincial boundaries remain undefined. When construction began in 2023, both provincial governments emphasized their commitment to fostering productive development within the cooperation zone, facilitating investment, and providing legal certainty for the project.
Through a comprehensive and detailed review process, technical and legal teams from the environmental authorities of both jurisdictions worked jointly for months on the Environmental Impact Assessment (EIA) for the project located within the cooperation zone at the Salar del Hombre Muerto. This collaborative effort facilitated project development while ensuring that the mining company adopted the most environmentally responsible alternative when planning the construction of the Sal de Oro project.
