BHP-Lundin's Vicuna Copper Project Greenlit for Argentina Incentives

---

Written by Amir Richani for IIR News Intelligence (Sugar Land, Texas)

---

Summary

The Vicuna mining project, which includes Josemaria and Filo del Sol deposits, is the latest copper project approved under Argentina's RIGI incentives program. Argentina is betting heavily on becoming a top copper producer with hopes of producing up to 1.5 million tonnes per year.

---

Strategic Export Project Incentives

The Vicuna copper project, a 50/50 joint venture by BHP and Lundin Mining which includes the Josemaria and Filo del Sol deposits, was accepted into Argentina's Incentive Regime for Large Investments (RIGI) program in its Long-Term Strategic Export Projects (PEELP) category. According to Industrial Info Resources data, there are 53 copper projects across Argentina, amounting to investments of US$24.91 billion.

Argentina Minister of Economy Luis Caputo said on social media conduit X that the mining development was approved under RIGI. He said the project could generate exports of more than US$2.6 billion per year and create over 30,000 jobs.

The Josemaria deposit is located in Argentina's San Juan province, while Filo del Sol is on the Argentina-Chile border. The development of Vicuna will be split into stages. The Industrial Info Resources Global Market Intelligence (GMI) Mining & Minerals Project Database includes detailed reports on the Josemaria and Filo del Sol projects.

Vicuna is one of the world's largest undeveloped copper districts. During a 10-year peak period, Vicuna's annual production is expected to be approximately 500,000 tonnes of copper, 800,000 ounces of gold, and 20 million ounces of silver.

"The approval of Vicuña's RIGI PEELP application is an important step forward in advancing one of the world's most important copper districts....Under this regime, the project will benefit from greater investment certainty, further supporting progress toward a final investment decision for Stage 1 before the end of this year," said Jack Lundin, chief executive officer of Lundin Mining.

RIGI: Argentina's Key Investment Tool

Vicuna is one of several mining projects already approved under the RIGI, including the Diablillos gold and silver project, the Los Azules copper project and the Rincon lithium project.

RIGI, a program introduced by the government of Javier Milei, offers long-term tax, customs, foreign exchange, and legal stability benefits for large-scale projects in industries such as renewables, mining, energy, infrastructure, and more. Minimum investments to apply for RIGI incentives are US$200 million, although a higher threshold applies for PEELP projects.

For projects designed to position Argentina as a long-term global supplier in the markets, such as Vicuna, PEELP offers more favorable benefits, such as longer benefit periods, faster export duty exemptions, and accelerated access to foreign exchange benefits. To apply for PEELP projects must amount to investments of US$2 billion.

More Copper

Argentina could become a significant player in the copper sector over the medium term, with several projects moving forward at different stages. The country does not currently have any large-scale copper production, but projects such as Vicuna could change that.

Some estimates suggest that Argentina could reach copper production of more than 1.5 million tonnes per year with the development of some current projects, making it one of the world's top producers.

Milei's government has backed the mining sector through policies such as RIGI and the reform of Argentina's glacier protection law, in the hope of unlocking new mining investments and move projects forward.

Key Takeaways

• The Vicuna project is approved under RIGI PEELP.
• Industrial Info Resources is tracking more than 50 copper mining projects in Argentina worth US$24.91 billion.

---

About Industrial Info Resources
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, Industrial Info Resources is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).