Argentina has been out of the copper business since 2018, when the Alumbrera mine shut down. On Monday, the joint venture that could bring it back put a number on the ambition: $18 billion across three development stages, making it what would be the country’s largest-ever foreign direct investment. Vicuña Corp, owned equally by BHP and Lundin Mining, released its Preliminary Economic Assessment integrating two deposits — Josemaria and Filo del Sol — into a single district plan for the first time, spread across the Argentine-Chilean border at elevations above 4,000 meters. This is part of The Rio Times’ daily coverage of Argentina affairs and Latin American financial news.
The first $7 billion phase, running from 2027 to 2030, will develop Josemaria as an open-pit mine with a concentrator plant designed for expansion. The second adds a processing facility for Filo del Sol’s oxide resources. The third pushes capacity to 293,000 tonnes per day and taps deeper sulfide deposits. The combined resource base — over 12 million tonnes of copper, 32 million ounces of gold, and 659 million ounces of silver — could sustain extraction for more than 70 years, though the PEA models a 25-year base case.
Copper Ambitions Face Argentine Structural Hurdles
The numbers arrive at a politically convenient moment. Chancellor Pablo Quirno credited President Milei’s RIGI investment incentive regime for creating the conditions, calling it proof that structural reforms attract capital. Vicuña applied for RIGI benefits in December, committing to spend $2 billion in its first 24 months. This year alone, the company plans to deploy around $800 million — double what it spent in 2024 — on detailed engineering, equipment purchases, access road improvements, and camp expansion. Over 1,000 workers already operate above 4,000 meters.
Still, Argentina’s copper ambitions face structural hurdles that no tax break alone can fix. Unlike Chile and Peru, where the state provides roads, power lines, and port access, Argentine mining companies typically finance their own infrastructure — a gap that inflates costs and extends timelines. The Glacier Law adds legal uncertainty around high-altitude operations, and Filo del Sol’s binational footprint means navigating two regulatory frameworks simultaneously. CEO Ron Hochstein called Vicuña a “transformational opportunity,” and the scale supports the claim: the district sits on one of the largest undeveloped copper deposits on Earth, precisely when the energy transition is making the metal indispensable. The question is whether Argentina can move at the speed the copper market demands.
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