1.4 C
Belgrade
Supported byspot_img
spot_img

Argentina’s mining resurgence: Copper and lithium projects set to transform industry

Member of Europium Groupspot_img
Supported byspot_img

Argentina’s mining sector is experiencing a resurgence, positioning itself to potentially rival Peru, the world’s second-largest copper producer, by addressing anticipated supply challenges for the red metal. This optimism hinges on the successful launch of eight out of twenty planned copper projects by 2030, which could elevate Argentina’s production to 793,000 tonnes.

Rob McEwen, founder of Goldcorp and CEO of McEwen Mining, shared this projection during a recent Fastmarkets webinar. McEwen, who holds a 48% stake in Argentina’s Los Azules copper deposit, emphasized the project’s significance. Los Azules ranks among the top ten undeveloped copper porphyry projects globally, with 10.9 billion pounds of copper in the indicated category and 26.7 billion pounds in the inferred category.

Located in San Juan province, which hosts five of Argentina’s primary copper assets—including Lundin Mining’s Josemaria, Filo Mining Corp’s Filo del Sol, Glencore’s El Pachon and Aldebaran’s Altar—the Los Azules project is pivotal. A bankable feasibility study for Los Azules is slated for the first half of 2025, with development expected to commence in 2026 and first production projected for 2029. This timing aligns with anticipated rising demand for copper as industries transition away from fossil fuels.

Supported by

Argentina aims to transform into a major copper supplier, with forecasts suggesting a production increase from 4,000 tonnes today to over 1 million tonnes annually by 2035, potentially accounting for over 10% of global copper output. McEwen views this as a substantial economic boost for Argentina, highlighting the country’s rich natural resources and the government’s growing support for foreign investment.

Recent legislative changes under President Javier Milei are set to further support this growth. In June, Argentina’s lower house of Congress passed a law granting special legislative powers to deregulate various economic sectors, including mining. The Incentive Regime for Large Investments (RIGI) provides tax benefits and relaxed capital controls for key industries, signaling a more favorable environment for mining investments.

Argentina’s ambassador to the UK, Marianna Plaza, noted that Milei’s reforms aim to stabilize the economy, control inflation, and attract foreign investment. She indicated that under RIGI, large-scale mining projects, including those focused on copper, are considered feasible and secure.

Jose Luis Manzano, founder of Integra Capital, echoed Plaza’s sentiments, suggesting that Milei’s policies have improved investment conditions and made new copper projects more viable. He noted that before Milei’s reforms, the copper sector in Argentina was led by pioneers like McEwen and Lukas Lundin, who faced numerous challenges. Now, the new policies are creating a more conducive environment for mining development.

In addition to copper, Argentina’s lithium sector is also thriving. The country has 180 advanced mining projects, with 30% focused on lithium. The Argentine lithium sector, valued at over $8 billion, has substantial resources, with an estimated 70 million tonnes of lithium. Fastmarkets analyst Callum Perry projects that Argentina will produce around 175,000 tonnes of lithium by 2026, trailing Chile but leading in growth rate.

Projects like Pursuit Minerals’ Rio Grande Sur, located in Salta province, are benefiting from the new regulations. Despite a downturn in the lithium market, Pursuit maintains momentum with recent drilling indicating higher lithium concentrations. The company aims to upgrade its resource estimate and move towards a feasibility study for commercial development.

Overall, Argentina’s strategic investments and regulatory reforms are setting the stage for the country to become a key player in both the copper and lithium markets, enhancing its position in the global mining industry.

Supported byElevatePR Digital

Related News

China launches $5 billion mining initiative in Zambia to support copper production growth

China has officially launched the Chinese Mining Enterprise Association in Zambia (CMEAZ), a major initiative aimed at investing $5 billion into Zambia's mining sector...

Peak Minerals to acquire majority stake in Suriname’s Tapanahony gold project

Australian exploration and development company Peak Minerals has entered into a binding letter of intent to acquire a significant interest in the Tapanahony gold...

PT Vale and GEM Co. forge $1.42 billion nickel processing deal in Indonesia

PT Vale and Chinese battery metals producer GEM Co. have signed a project investment cooperation framework agreement to build a high-pressure acid leach (HPAL)...

India must strengthen domestic critical mineral supply to reduce import dependence, report warns

India must prioritize investments in its domestic critical mineral sector to reduce its heavy reliance on imports of cobalt, lithium and nickel, according to...
Supported by
Supported by
Supported by
error: Content is protected !!