Lithium Royalty Corp. congratulates Zijin Mining on Tres Quebradas lithium production start, boosting Argentina’s lithium role and LRC’s royalty growth.
Lithium Royalty Corp. (LRC) has extended its congratulations to Zijin Mining Group Co., Ltd. on the official commencement of production at the Tres Quebradas lithium project in Argentina’s Catamarca Province. The achievement marks the third lithium mine in Catamarca to begin operations, reinforcing Argentina’s emergence as a significant contributor to the global battery materials supply chain.
Ernie Ortiz, President and CEO of Lithium Royalty Corp., praised the accomplishment, stating, “We extend our congratulations to the entire Zijin team on reaching this important milestone. Since acquiring Tres Quebradas in February 2022, Zijin has successfully transformed the brine asset into an operational project, underscoring the team’s speed, dedication, and commitment. This mine is positioned as one of the world’s leading brine assets and will play a central role in Zijin’s lithium portfolio.”
Earlier this year, LRC representatives visited the Tres Quebradas site in Argentina as well as Zijin’s headquarters in Fujian Province, China. During these visits, Zijin emphasized the project’s strategic importance within its broader resource portfolio. The transition from acquisition to production within such a short timeframe reflects Zijin’s significant investment and operational efficiency.
The Tres Quebradas project was acquired by Zijin in February 2022 for approximately C$960 million. Following the acquisition, the company committed over US$600 million in capital expenditures to accelerate development. Phase 1 of the project aims to produce 20,000 tonnes per annum (tpa) of lithium carbonate equivalent (LCE). The company’s 2024 Annual Report revealed an updated mineral resource estimate at the Tres Quebradas salar, reinforcing the asset’s long-life potential and its role as a cornerstone in Zijin’s lithium growth strategy.
Looking ahead, Zijin has already outlined plans for a Phase 2 expansion, which is expected to add an additional 40,000 tpa of LCE. Once both phases are fully operational, the project is projected to achieve a total annual production capacity of 60,000 to 80,000 tpa. This expansion underscores Zijin’s long-term vision for Tres Quebradas and its commitment to positioning the project as a world-class lithium producer.
For Lithium Royalty Corp., the commencement of production at Tres Quebradas represents not only a milestone for Zijin but also a significant development within its own royalty portfolio. LRC holds a 0.9% gross overriding revenue (GOR) royalty on the project, granting it direct exposure to Tres Quebradas’ current output and future expansion potential.
Ortiz added that LRC anticipates additional milestones across its diversified royalty portfolio in the coming quarters. These advancements are expected to strengthen the company’s organic growth trajectory and further establish its role as a key player in the global lithium market.
The start of production at Tres Quebradas therefore highlights a dual success: for Zijin Mining, it validates their investment and operational execution, and for Lithium Royalty Corp., it enhances long-term shareholder value through reliable royalty income and growth opportunities tied to one of Argentina’s most promising lithium assets.
