Some stocks among ASX listed companies are unique because of their quality portfolio. This stock, which is one of the high quality dividend paying stocks, is also one of the largest miners of the world.
Rio Tinto Limited (ASX: RIO)
Rio Tinto Limited (ASX: RIO) has committed a significant $2.5 billion investment to expand its Rincon lithium project in Argentina, which marks the company’s first commercial-scale lithium operation. The expansion aims to increase Rincon's capacity to 60,000 tonnes per year of battery-grade lithium carbonate, making it a key part of Rio Tinto’s strategy to build a world-class battery materials portfolio. The expansion will include a 3,000-tonne starter plant and a 57,000-tonne expansion plant, with construction set to commence in mid-2025, subject to receiving the necessary permits. Production is expected to begin in 2028, with a three-year ramp-up to full capacity. The project is expected to operate for around 40 years and is positioned to be one of the most cost-efficient lithium operations globally, thanks to its large resource base and advanced production methods. The Rincon project is projected to be in the first quartile of the cost curve, demonstrating its potential for long-term profitability and resilience in fluctuating market conditions.
The project’s Direct Lithium Extraction (DLE) technology is a major factor in its efficiency. DLE significantly reduces water usage and waste compared to traditional extraction methods, ensuring a more sustainable and environmentally friendly production process. Located in Argentina’s lithium-rich “lithium triangle,” Rincon benefits from the country's supportive economic policies and the Incentive Regime for Large Investments (RIGI), which offers favorable tax rates, regulatory stability, and strong protections for investors. These policies further enhance the attractiveness of the investment, providing Rio Tinto with a solid foundation for long-term growth in the lithium sector. Alongside Rincon, Rio Tinto is also expanding its lithium footprint through the acquisition of Arcadium, a move that will enhance its resource endowment and improve its position on the global cost curve. The acquisition is set to close in mid-2025 and will further strengthen Rio Tinto’s ability to compete in the rapidly growing lithium market.
Rio Tinto is among high dividend stocks with an annual yield of 5.62%. The company is also capitalizing on the growing demand for copper, driven by the transition to renewable energy and the electrification of vehicles. The company is targeting 1 million tonnes of copper production over the next decade, with key projects such as Oyu Tolgoi and Winu driving medium-term growth. Rio Tinto is addressing challenges at its Kennecott mine and advancing projects like Resolution and Nuevo Cobre to ensure sustainable and profitable copper production. With a strong balance sheet and strategic investments, Rio Tinto is well-positioned to meet the increasing global demand for copper while also positioning itself as a major player in the lithium sector.
Source: Company’s Report
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