South Korean mining company Posco has finalized the purchase of the Hombre Muerto Norte (HMN) project in Salta, Argentina, for $65 million. The deal, lauded by Argentina’s Minister of Economy, Luis Caputo, aligns with the company’s strategy to secure lithium resources in the global race for battery production.
Argentina Attracts Lithium Investment
The HMN project is located in the Salar del Hombre Muerto, a high-altitude region spanning the provinces of Salta and Catamarca, known for its high concentration of lithium. Caputo stated via his official X account, “Meeting with Posco, one of the world’s leading companies in steel and Lithium. RIGI (Investment Incentives Regime for Large Investments) soon to be approved. More investment for the north of our country.”
Argentina’s position within the “Lithium Triangle” – shared with Bolivia – places it third in global lithium reserves. The HMN project has the potential to produce up to 15,600 tons annually of lithium carbonate equivalent (LCE). Posco acquired 100% of the shares of NRG Metals Argentina S.A., a subsidiary of Lithium South, the previous owner of Hombre Muerto.
Posco already held mining rights in the Salar del Hombre Muerto since 2018, and this acquisition expands its presence with additional resources and land. The company is also responsible for the Sal de Oro project in the same region, which aims to qualify for the RIGI with a planned investment of $633 million. Sal de Oro includes a lithium hydroxide plant with a capacity of 25,000 tons per year, and a second phase is underway to add a 23,000-ton LCE carbonate plant.
In November, Posco committed to investing $817 million USD in lithium projects in Argentina and Australia, including a 30% stake in a partnership with Mineral Resources Ltd. For $765 million USD. Argentina currently has 66 mining projects in various stages of development, with only seven currently in production.
Frequently Asked Questions
What is the significance of the RIGI?
The RIGI, or Investment Incentives Regime for Large Investments, is a government initiative designed to attract foreign capital and boost strategic sectors of the Argentine economy, such as lithium mining.
Where is the Hombre Muerto Norte project located?
The Hombre Muerto Norte project is located in the Salar del Hombre Muerto, between the provinces of Salta and Catamarca, Argentina, at an altitude of over 4,000 meters.
What is Posco’s stated goal in investing in lithium?
According to Posco Holdings President Chang In-hwa, the company views the materials energy business as a fundamental growth engine alongside its steel operations and is committed to securing a stable and competitive supply of raw materials.
As Argentina continues to develop its lithium industry, will the country be able to capitalize on its abundant resources and establish itself as a leading global supplier?
