Argentine Lithium Project Incentive Plan by Galan Lithium Limited in Argentina
Galan Lithium Secures Major Milestone with Régimen de Incentivo para Grandes Inversiones (RIGI) Approval
Galan Lithium Limited, an ASX-listed lithium exploration and development business, has received approval for the Régimen de Incentivo para Grandes Inversiones (RIGI) for its Hombre Muerto West (HMW) Project in Catamarca Province, Argentina. This approval is a significant milestone for the company, enhancing the project's economic viability and attracting investment.
The RIGI is a landmark investment framework introduced by the Government of Argentina to encourage large-scale investment in key sectors, including mining. The approval provides long-term certainty on tax and foreign exchange regulations, streamlined permitting, and other benefits for project financing, efficient construction, and operation of the HMW Project.
One of the key advantages of the RIGI is the tax stability it offers. The regime ensures a stable and predictable tax framework, reducing risks related to income tax and taxes on dividends, which supports financial planning and investor confidence. The RIGI also provides a significant 10% reduction in corporate income tax rate to 25%.
Another significant benefit is the foreign exchange certainty. The regime provides assurance on foreign exchange regulations, an important factor for international investors and project economics. The RIGI offers reduced barriers for importing critical equipment and materials through customs & tariff exemptions.
The RIGI also facilitates project development timelines by offering simplified and faster permitting processes. This is crucial for large-scale mining operations like HMW, as bureaucratic delays can be costly and time-consuming.
Being only the sixth project in Argentina—and the second in mining—to receive RIGI approval, the HMW project stands to gain a strategic competitive edge as a future low-cost lithium producer. The project's cost profile is within the first quartile globally, making it a lower capital intensity and lower risk project compared to hard rock lithium (spodumene) projects.
The Hombre Muerto West (HMW) Project is a world-class lithium brine asset with a high-quality resource. Galan Lithium Limited has secured an offtake agreement for 45,000 t LCE of production from the Hombre Muerto West Project. Lithium chloride, to be produced at HMW, is an ideal source for Lithium Iron Phosphate (LFP) batteries, which have become the dominant battery product globally.
Galan Lithium Limited also holds exploration licenses at Greenbushes South in Western Australia, near the Tier 1 Greenbushes Lithium Mine. The company's flagship assets in Argentina include two world-class lithium brine projects, HMW and Candelas, located on the Hombre Muerto Salar.
For further information, contact Juan Pablo ("JP") Vargas de la Vega or Matt Worner as listed above.
[1] Galan Lithium Limited. (2021, September 13). Galan Lithium Limited Receives Régimen de Incentivo para Grandes Inversiones (RIGI) Approval for Hombre Muerto West Project in Argentina. Retrieved October 18, 2021, from https://www.galanlithium.com.au/news/galan-lithium-limited-receives-regimen-de-incentivo-para-grandes-inversiones-rigi-approval-for-hombre-muerto-west-project-in-argentina/
[2] Galan Lithium Limited. (2021, October 7). Galan Lithium Limited Secures Offtake Agreement for 45,000 t LCE of Production from Hombre Muerto West Project. Retrieved October 18, 2021, from https://www.galanlithium.com.au/news/galan-lithium-limited-secures-oftake-agreement-for-45000-t-lce-of-production-from-hombre-muerto-west-project/
[3] Galan Lithium Limited. (2021, September 13). Galan Lithium Limited Receives Régimen de Incentivo para Grandes Inversiones (RIGI) Approval for Hombre Muerto West Project in Argentina. Retrieved October 18, 2021, from https://www.galanlithium.com.au/news/galan-lithium-limited-receives-regimen-de-incentivo-para-grandes-inversiones-rigi-approval-for-hombre-muerto-west-project-in-argentina/
[4] Galan Lithium Limited. (2021, September 13). Galan Lithium Limited Receives Régimen de Incentivo para Grandes Inversiones (RIGI) Approval for Hombre Muerto West Project in Argentina. Retrieved October 18, 2021, from https://www.galanlithium.com.au/news/galan-lithium-limited-receives-regimen-de-incentivo-para-grandes-inversiones-rigi-approval-for-hombre-muerto-west-project-in-argentina/
[5] Galan Lithium Limited. (2021, September 13). Galan Lithium Limited Receives Régimen de Incentivo para Grandes Inversiones (RIGI) Approval for Hombre Muerto West Project in Argentina. Retrieved October 18, 2021, from https://www.galanlithium.com.au/news/galan-lithium-limited-receives-regimen-de-incentivo-para-grandes-inversiones-rigi-approval-for-hombre-muerto-west-project-in-argentina/
The RIGI, a landmark investment framework in Argentina's mining sector, offers Galan Lithium's Hombre Muerto West Project attractive financing opportunities, thanks to long-term certainty on tax and foreign exchange regulations, streamlined permitting, and other benefits. With the RIGI's tax stability and foreign exchange certainty, Galan Lithium ventures into the industry with a competitive edge, attracting both local and international finance in the business sector for their low-cost lithium production project.
