Galan Lithium Limited (ASX:GLN), an ASX-listed lithium exploration and development business, has announced that its Hombre Muerto West (HMW) Project in Argentina has been approved for the Argentine Government’s Régimen de Incentivo para Grandes Inversiones (RIGI), an incentive regime for large-scale investments. The Comite Evaluador de Proyectos RIGI has granted the approval, and Galan anticipates receiving official approvals in due course. The HMW project is located in Catamarca Province, Argentina.
The RIGI is a key component of the Argentine Government’s new economic reform agenda, designed to stimulate significant investment in crucial sectors like mining. This framework provides long-term certainty regarding tax and foreign exchange regulations, alongside streamlined permitting processes. These factors are considered critical for securing project financing and ensuring the efficient construction and operation of the HMW Project throughout its projected lifespan.
According to Galan, the HMW project will be only the sixth project in Argentina to receive RIGI approval, and the second in the mining sector, following Rio Tinto’s Rincon project. Juan Pablo (“JP”) Vargas de la Vega, Managing Director, stated that this milestone will further strengthen HMW’s competitive position as a future low-cost producer. He emphasized the RIGI’s role in providing fiscal stability and operational certainty, which are essential for major project financing and execution.
The key benefits of the RIGI for the HMW project include a reduced corporate income tax rate of 25%, fiscal stability concerning income tax, royalties, and export duties for 30 years, preferential access to currency markets, customs and tariff exemptions for importing equipment, and accelerated depreciation. Galan sincerely thanked 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.
