With the presence of Governors Raúl Jalil (Catamarca) and Gustavo Sáenz (Salta), Chief of Cabinet Diego Santilli and Secretary General of the Presidency Karina Milei, mining company POSCO formally inaugurated Plant II of the Sal de Oro Project at the Salar del Hombre Muerto, in the cooperation zone between the provinces of Salta and Catamarca. It is the first project to become operational with investment made through the RIGI.
By Panorama Minero
The new facility contemplates a projected production capacity of 23,000 tonnes of lithium carbonate per year, aimed at the export market, with a progressive ramp-up period planned for 2027. The inauguration included simultaneous events at the Limache Convention Center in Salta, in the Puna (where the plants are located), and at the Hotel Casino Catamarca.
Agreed Expansion: Stages III and IV Toward 100,000 Tonnes per Year
The provincial authorities of Catamarca and Salta signed a memorandum of understanding to move forward with Stages III and IV of the project, with the objective of reaching annual production of 100,000 tonnes of lithium products. The agreement establishes a joint roadmap to support the expansion of the project and represents a new stage of coordination between Salta, Catamarca and the company to promote investment, employment, supplier development and capacity building, with particular impact on Puna communities. All of this is framed within joint work between the provinces to prevent boundary differences that must be resolved by Congress from bringing investments in the area to a halt.
Investment: US$547 Million Through the RIGI
The construction of Plant II was made possible through the RIGI, which POSCO entered in June with a guaranteed investment of US$547 million. The regime provides benefits in terms of fiscal, tax, customs and foreign exchange stability.
The Sal de Oro Project as a whole contemplates a total investment of more than US$2 billion, distributed across the different phases of construction and commissioning of its two plants (lithium hydroxide and lithium carbonate).
IDB Invest Financing: US$700 Million
Several weeks ago, IDB Invest provided US$700 million in financing to POSCO Argentina for the expansion of lithium extraction and production at the two plants of the Sal de Oro project in the Salar del Hombre Muerto. The transaction was carried out within the framework of IDB LAC Minerals, the IDB Group initiative to develop more secure and higher-value-added critical mineral supply chains originating in Latin America and the Caribbean.
RIGI as a Catalyst for Mining Investment
During the speeches, Chief of Cabinet Diego Santilli highlighted that “this new stage represents the beginning of a path for Argentine mining” and attributed the growth in investment to macroeconomic stability and the RIGI. He highlighted that Salta already has US$9.38 billion approved under the RIGI and Catamarca US$9 billion, with a projection of 10,000 jobs for each province.
Santilli also mentioned that the Argentine Republic has 47 investment regime projects totaling US$209 billion that are being approved and entering the investment phase.
Mining as the Third Engine of the Argentine Economy
Santilli placed the inauguration within a broader economic strategy. He stated that “Argentina flies as if it were an airplane with several engines,” referring to agriculture and its agro-industry as the first historical engine, Oil and Gas as the second engine that is transforming the trade balance from deficit to surplus, and mining as “the third engine of the Argentine Republic.”
The Chief of Cabinet also mentioned the importance of the knowledge industry as a fourth engine. He highlighted that while Poland exports more than US$50 billion in knowledge products, Argentine mining is projected to reach around US$40 billion, placing it on a par with countries such as Peru and Chile.
Santilli mentioned that during a recent visit to France, US$27 billion in investments approved under the RIGI for the Argentine Republic were signed, demonstrating the international reach of the regime. He stressed that the RIGI is “the path” for attracting strategic investments to the country.
Greetings and Support
Later, Secretary General of the Presidency Karina Milei conveyed greetings from President Javier Milei and highlighted that “this new investment means more production, more employment, more opportunities for the region.” She praised those who “invest, create jobs and contribute to the development of our country.”
