Argentina has a world-class copper project under construction and three others in advanced stages of development.
This will enable the South American country to become one of the world’s top ten producers over the next decade, producing around 810,000 tonnes annually.
According to the Energy Secretariat, the promising prospects for copper development are part of a diversified portfolio of strategic minerals and metals projects for the global energy transition, among which lithium has a prominent position.
Bordering Chile, Bolivia, Paraguay, Brazil, and Uruguay, the Republic currently has a copper project under construction: the Josemaría deposit in San Juan province.
It could reach an estimated annual production of 131,000 tonnes with an announced investment of US$4.1 billion.
The development of Josemaría will allow Argentina to re-position itself as a producer and supplier of copper, another mineral central to achieving decarbonization goals, following the closure of Bajo la Alumbrera in Catamarca in 2018.
Large-scale copper production began in 1997 with the start of this operation in northwestern Catamarca, and during its lifetime, it contributed to tax revenues of US$5.037 billion and exports of US$17.3 billion.
Argentina’s large copper potential is located in the central Andes, in line with Chile and Peru, with approximately 1.033 billion tonnes of copper reserves for the region, representing 40% of the world’s copper reserves.
The portfolio of copper projects in the country includes Josemaría and three other projects in advanced stages.
In Catamarca, the Minera Agua Rica Alumbrera (Mara) project has reached the pre-feasibility stage and foresees investments of US$3.1 billion and production of 155,000 tonnes per year.
Another of the two major global projects is Pachón, in the province of San Juan, which is at the feasibility stage and envisages an initial investment of US$4.5 billion and annual production of 280,000 tonnes.
The third project is Taca Taca, in Salta Province, with an expected investment of US$3.58 billion and an estimated annual production of 244,000 tonnes.
Four more developments could be added in various stages, such as Los Azules in San Juan province, with a projected investment of US$2.3 billion and an estimated annual production of 186,000 tonnes.
Filo del Sol, also in San Juan, is a project on the border with Chile requiring an investment of US$1.25 billion to supply 67,000 tonnes annually. San Jorge in Mendoza would require an investment of US$370 million for about 40,000 tonnes of copper per year.
This would mean over 1,200,000 tonnes of copper supply annually and over US$21 billion in investments.
According to International Energy Agency (IEA), projections for 2040, global demand for minerals and metals for clean energy technologies will double.
In this scenario, Argentina could play a key role in narrowing the gap between current production and future demand for critical minerals as part of the energy transition associated not only with electromobility but also with the electrification of the energy matrix.
Consumption of refined copper has increased by an average of 2.6% per year over the past 20 years.
It is expected to continue to increase, as this mineral is a critical raw material.
Copper exports will amount to US$6.511 billion if the four most advanced projects come on stream this year.
Considering these forecasts, the Ministry of Mines projects that Argentina’s mining exports could reach US$8.596 billion by 2025, an increase of more than 100%.
By then, lithium exports would increase exponentially, reaching a value of US$5.653 billion by 2025, adding six projects to the two currently in production, each of which would expand its production capacity.
By 2030, mining exports are expected to reach US$18.5 billion, with lithium exports reaching US$8.73 billion and copper exports of US$6.511 billion, in addition to gold and silver.
The provinces of Jujuy, Salta, and Catamarca, located in the so-called regional lithium triangle, have the second largest concentration of resources of economic interest, surpassed only by Bolivia, while Argentina ranks. At the same time,n reserves, behind Chile and Australia.
The lithium industry is projected within a mining activity that also has local development prospects and currently has 18 projects in operation: 12 gold, three silver, two lithium, and one coal project, which together increased mining exports to US$3.857 billion in 2022, the best result since 2012.
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