How Argosy’s New 40MW Power Link Could Transform Rincon Lithium Project
Argosy Minerals has reached a key agreement to develop a 40MW energy infrastructure for its Rincon Lithium Project in Argentina, paving the way for expanded lithium production and enhanced project viability.
- 40MW medium voltage power line engineering and feasibility agreed with EDESA
- Connection to Argentina National Power Grid via Altiplano Solar Facility sub-station
- ~7km transmission line planned to supply Rincon Lithium Project
- Preliminary works expected to complete within approximately 85 days
- Focus on renewable energy sourcing through Power Purchase Agreements
Strategic Energy Milestone for Rincon
Argosy Minerals Limited (ASX – AGY) has announced a significant advance in its development of the Rincon Lithium Project in Salta Province, Argentina. The company’s local joint venture, Puna Mining S.A., has secured an agreement with Salta Electricity Distribution Company S.A. (EDESA) to undertake detailed engineering and feasibility studies for a medium voltage power line capable of delivering up to 40MW of energy. This infrastructure is critical to powering the planned 12,000 tonnes per annum lithium production and future expansions.
Infrastructure Details and Regional Context
The planned energy connection involves constructing approximately 7 kilometres of electric transmission line linking the Rincon site to a sub-station adjacent to the 208MW Altiplano Solar Facility. This sub-station connects to the Argentina National Power Grid at 500kV, providing a robust and reliable power source. Notably, this infrastructure development aligns with similar arrangements for the neighbouring Rio Tinto Rincon Project, suggesting a collaborative regional approach to energy access in this lithium-rich area.
Timeline and Next Steps
EDESA’s scope includes technical design, surveying, and scheduling, with the engineering and feasibility phase expected to conclude within roughly 85 days. Upon completion, Argosy will move forward with constructing the transmission line and transformer facilities. Concurrently, the company plans to engage with Argentine renewable energy providers to secure Power Purchase Agreements, aiming to source clean energy through the national grid to power its operations sustainably.
Implications for Project Economics and Growth
Argosy’s Managing Director, Jerko Zuvela, highlighted that access to grid power is a major barrier for lithium projects in northwest Argentina. Being only about 7 kilometres from critical energy infrastructure significantly reduces capital expenditure and enhances the economic viability of the Rincon Project’s 12,000tpa stage. This development milestone not only supports the company’s fast-track production ambitions but also positions Argosy favorably within the competitive Lithium Triangle region.
Looking Ahead
While the engineering studies and subsequent construction represent a major step forward, the ultimate success of the Rincon Project will depend on finalising renewable energy agreements and navigating the complexities of project financing and market conditions. Nonetheless, this infrastructure breakthrough marks a pivotal moment in Argosy’s journey toward establishing a sustainable lithium supply chain.
Bottom Line?
Argosy’s power infrastructure deal sets the stage for Rincon’s lithium ambitions but hinges on timely execution and renewable energy sourcing.
Questions in the middle?
- Will Argosy secure competitive Power Purchase Agreements to ensure sustainable energy supply?
- How will the infrastructure timeline impact the overall project development schedule?
- What are the potential cost implications if engineering or construction phases encounter delays?
