Argentina’s First Mendoza Copper Mine Nears Financing

A copper project that was killed by political opposition more than a decade ago is now hiring one of the world’s largest investment banks to help it get built. PSJ Cobre Mendocino, controlled by Switzerland’s Zonda Metals and Argentine firm Alberdi Energy, has appointed RBC Capital Markets to advise on financing options for a $630 million open-pit copper and gold mine in Uspallata, in Argentina’s Mendoza province. CEO Fabián Gregorio told Bloomberg the company would choose among competing proposals in the coming months.

The announcement, made during the Prospectors and Developers Association of Canada convention in Toronto, marks the most advanced stage yet for a project that was originally proposed as San Jorge and rejected by the Mendoza legislature in 2011. Its revival is now being held up as a test case for whether Argentina‘s resource-rich but politically cautious provinces can actually deliver on the mining ambitions that President Javier Milei has made central to his economic agenda.

From Rejection to Legislative Approval

The project’s trajectory reversed dramatically in December 2025, when Mendoza’s Senate approved its environmental impact statement in a 29-6 vote with one abstention. The decision followed 13 years of studies, a ten-day public hearing, and more than 9,500 written submissions, with public support exceeding 60% according to the company. Environmental groups including Greenpeace had raised concerns about water use and waste management in a province known globally for its Malbec vineyards.

The vote was notable for splitting the Peronist opposition bloc, with several members breaking ranks to support the project. Milei himself publicly backed the initiative, calling it “the closest Mendoza has come to definitively launching mining in the last 20 years.” Governor Alfredo Cornejo, who championed the approval, positioned it as a milestone for economic diversification.

What the Mine Would Produce

Located in the Las Heras department, the mine would use conventional flotation to produce copper concentrate with 25% copper content. Initial production targets are 40,000 tonnes of fine copper per year, potentially rising to 70,000 tonnes in the second year. The deposit also contains gold, with average grades of 0.47% copper and 0.191 grams per tonne of gold. The mine life is estimated at 16 years, extendable to 27, with construction expected to take 18 to 24 months and generate roughly 3,900 jobs during the building phase and 2,400 during operations.

RIGI and the Investment Framework

PSJ has applied to join Argentina’s Large Investment Incentive Regime, known as RIGI, which offers fiscal and exchange rate stability for projects exceeding $200 million. If accepted, it would be Mendoza’s first metallic mining project under the regime and the fifth mining project nationwide to enter the scheme. The company is currently finalizing detailed engineering and feasibility updates, with 300 professionals working on technical preparations.

A Copper Bet With Global Stakes

The project arrives as global copper markets tighten. Demand driven by electrification, renewable energy infrastructure, and electric vehicle production has outpaced new mine supply, and Goldman Sachs has warned of potential price spikes if production disruptions occur. Argentina, which has significant untapped copper deposits across its western Andean provinces, is positioning itself as a new source of supply. If PSJ Cobre Mendocino reaches production, it would not only transform Mendoza’s economy but also signal that Argentina’s mining investment framework can deliver results in provinces that have historically resisted the industry.

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