Galan Lithium Limited is pleased to advise that the Comite Evaluador de Proyectos RIGI, responsible for awarding the Argentine Government’s Régimen de Incentivo para Grandes Inversiones (the incentive regime for large-scale investments referred to as the “RIGI“), has approved the RIGI for Galan’s flagship Hombre Muerto West (“HMW”) Project in Catamarca Province, Argentina. Galan now expects to receive official approvals relating to the RIGI in due course.
The RIGI is a landmark investment framework introduced as part of the Government of Argentina’s new economic reform agenda, aimed at encouraging large-scale investment in key sectors, including mining. The RIGI provides long-term certainty on tax and foreign exchange regulations, as well as streamlined permitting, both critical enablers for project financing, efficient construction and operation of the HMW Project over its multi-decade life.
HMW will be only the sixth project to receive the RIGI approval in Argentina and the second in the mining sector, following the recent award to Rio Tinto’s Rincon project.
Managing Director, Juan Pablo (“JP”) Vargas de la Vega, commented:
“This is a major milestone for Galan that will further strengthen HMW’s global competitive position as a future low-cost producer. The RIGI will provide a strategic advantage to Galan and will unlock meaningful long-term value for the people of Catamarca and our shareholders.
The RIGI delivers fiscal stability and operational certainty over the long-term, key requirements for major project financing and execution. It also signals strong alignment between Galan and the Argentine government’s broader vision of accelerating lithium production and economic development.
Galan sincerely thanks the Government of Argentina and the Province of Catamarca for endorsing HMW for official approvals under the RIGI which further substantiates HMW as a significant project in Argentina and globally.”
Key Benefits of the RIGI for the HMW project:
- Reduced Corporate Income Tax: a significant 10% reduction in corporate income tax rate to 25%.
- Fiscal Stability: Certainty around income tax, royalties, and export duties for 30 years.
- Foreign Exchange: Preferential access to currency markets for imports and dividend repatriation.
- Customs & Tariff Exemptions: Reduced barriers for importing critical equipment and materials.
- Accelerated Depreciation: Improved cash flow through tax-effective project development.
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