The Rio Tinto Limited (ASX: RIO) share price is currently up by around 3.5%. That represents quite a bit of outperformance considering the S&P/ASX 200 Index (ASX: XJO) is down 0.5%.
It's not the only resources company that is doing well today. The BHP Group Ltd (ASX: BHP) share price is up 1.9% as well.
But it may not just be typical market movements that Rio Tinto investors are responding to.
The business also announced a promising update regarding its lithium plans.
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Spodumene concentration production started
Rio Tinto announced yesterday that it has started producing spodumene concentrate, which is an important mineral used in the production of lithium for batteries. This is being done at a demonstration plant in its Rio Tinto iron and titanium (RTIT) Quebec operations at its metallurgical complex in Canada.
The plan for the plant is that it will demonstrate, at an industrial scale, a new spodumene concentration process that provides lithium oxide grades and recoveries "well above the industry average". It "offers the environmental benefit of not using chemical products and generating only dry, inert residues".
RTIT managing director Stéphane Leblanc said:
Rio Tinto is exploring new, sustainable ways to extract battery materials for the energy transition. We are seeing strong interest in the market for a North American supply of spodumene concentrate to support production of lithium batteries.
Our demonstration plant will allow us to further validate the innovative spodumene concentration process developed at our Critical Minerals and Technology Centre as we consider moving to commercial-scale production.
Rio Tinto says it's committed to the battery materials sector and lithium's role in a low carbon future.
The ASX mining share is focused on the Rincon lithium project, a large undeveloped lithium brine project located in Argentina. Rio Tinto describes this as a "long life, scaleable project" that "has the potential to have one of the lowest carbon footprints in the industry".
Energy Resources of Australia independent valuation report
The ASX mining share made another announcement yesterday, acknowledging the independent valuation report released by Energy Resources of Australia (ERA) on 26 September 2022, to determine a valuation of the company as it aims to address material cost and schedule overruns on the Ranger rehabilitation project in Australia's Northern Territory.
Rio Tinto's position is that the terms of any ERA funding solution should reflect "fair value" regarding the material cost overruns and interim funding requirements, that funds raised will be dedicated strictly to rehabilitation and not any future development, and the Traditional Owners, the Mirarr People's consistently publicly stated opposition to developing the Jabiluka uranium deposit.
The mining company stated that, in its view, "the independent valuation report prepared by Grant Thornton and adopted by the independent board committee to help set the price for a future entitlement offer, fails to appropriately recognise the long-standing opposition of the Mirarr People to further uranium mining on their country. Rio Tinto understands that this causes distress for the Mirarr elders and community."
Rio Tinto has offered to subscribe for its full pro-rata entitlement at an offer price that "fully reflects Rio Tinto's view of fair value". This offer to ERA is still open.
The ASX 200 mining share said that it's committed to "ensuring the rehabilitation is completed to a standard that will establish an environment similar to the adjacent Kakadu National Park".
Rio Tinto share price snapshot
While Rio Tinto shares are up today, they are down by 21% over the last six months. They are also down 6% year to date and by a similar amount over the past 12 months.
