Big copper mining is approaching Argentina, says Goldcorp founder

RIO DE JANEIRO, BRAZIL – Huge deposits and more favorable policies have made Argentina a hot spot for lithium in recent years, and now the world copper industry has also turned its eyes back to the country governed by Alberto Fernandez. That is the opinion of Canadian Rob McEwen.

McEwen’s eponymous company is drilling a property in the province of San Juan, near the Chilean border. It is Los Azules, an operation that has attracted the attention of major producers such as Vale, Anglo American and Barrick Gold, seeing it as a possible acquisition, according to the businessman. All three companies declined to comment, asked by Diario Financiero.

While McEwen is looking to advance the project further before considering a sale, the interest from the majors is a sign of copper’s auspicious outlook as a key component in the transition to clean energy, as well as Argentina’s growing attractiveness as a mining jurisdiction, he said in an interview yesterday.

GOOD SCENARIO

Argentina, where interventionist policies have held back the industry, is becoming a more attractive scenario for foreign investors, at least in some of its mineral resource-rich provinces.

The Fernandez government sees mining as a way to attract more foreign exchange to solve its persistent debt problems, while politicians in the more established jurisdictions of Chile and Peru are seeking a greater share of the industry’s profits and more restrictive regulation, adding to the South American country’s appeal.

Lithium deposits in Argentina, already a fairly significant gold producer, are attracting billions of dollars as global demand for electric vehicles rises, while a unit of Australian iron ore miner Fortescue is studying options to produce hydrogen from wind power.

“We’ve seen a number of large companies approaching and looking closely at Argentina,” McEwen says. “That in itself is giving more comfort to foreign investment.”

For now, the Canadian wants to increase the value of Los Azules by moving into the prefeasibility stage over the next year and a half. The company is deploying drill rigs and building an access road, although work has been delayed by cultural preservation efforts following the discovery of fossils.

GOLD AND SILVER

The omicron wave has also affected some operations in Argentina, including McEwen’s gold and silver joint venture with Hochschild in Santa Cruz province, he noted.

While he may be focused on Argentine copper at the moment, Goldcorp’s founder and former chairman continues to keep a close eye on the gold market.

The yellow metal has lagged other commodities of late, but the inflationary environment will eventually bring gold and silver back into fashion as the broader bull market loses steam, McEwen contends.

“I think we should see a 100% move in gold and silver if it is going to keep in line with other commodities,” he predicts.

With information from Diario Financiero