BHP, Lundin May Spend $18.1 Billion on Argentina-Chile Copper Project

---

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

---

Summary

Vicuna offers BHP and Lundin a world-class deposit, with potential to become a leading producer of copper, gold and silver. Argentina could shift from a non-producer to a key supplier in the next few years.

---

Vicuna Project Assessed

Mining firms BHP and Lundin have published their preliminary economic assessment (PEA) for the Vicuna project in Argentina, demonstrating a world-class resource capable of producing more than 500,000 tonnes of copper per year. The companies could make a final investment decision as early as year-end.

The Vicuna project is composed of the Josemaria and Filo del Sol deposits, located in Argentina's San Juan province and Chile's Antofagasta province. The project amounts to an investment of US$18.1 billion to develop its three stages. Those investments would reach US$30.3 billion for the full life of the project, including closure. Subscribers to Industrial Info's Global Market Intelligence (GMI) Metals & Minerals Project Database can view the Josemaria and Filo del Sol project reports.

Stage I of the project, planned for 2027-2030, includes constructing an open-pit mine and a concentrator at the Josemaria deposit, with first production targeted for 2030 following an initial US$7.1 billion investment.

The second stage includes Filo del Sol's leachable oxides and SX/EW plant for copper, gold, and silver recovery. The last stage would include expanding the concentrator and developing Filo del Sol sulfides deposit, as well as constructing a desalination plant and other infrastructure.

Vicuna's yearly production average during a 10-year period is expected to be more than 500,000 tonnes of copper, 800,000 ounces of gold and 20 million ounces of silver.

These volumes position Vicuna among the world's top five copper, gold, and silver mines.

Over 25 years, Vicuna could average 395,000 tonnes of copper, 711,000 ounces of gold, and 22.2 million ounces of silver annually. The operation may last more than 70 years, with lifetime outputs of 22.3 million tonnes of copper, 37.2 million ounces of gold and 763 million ounces of silver.

Unlocking Argentina's Potential

Argentina halted copper production in 2018 following the closure of the Alumbrera mine. However, the South American nation's copper prospects only become brighter. The announcement of Vicuna adds to those made by companies such as Glencore at the El Pachon and MARA projects, and McEwen's Los Azules development.

In the next few years, Argentina could move from a copper non-producer to one of the world's largest copper suppliers, producing more than 1 million tons of copper per year, based on the expectations of Glencore Argentina's president. It is forecasted that during production, Vicuna will contribute about US$965 million annually and US$69 billion over the life of mine in taxes and royalties to Argentina.

Industrial Info is tracking 64 copper-related projects in Argentina worth US$30.1 billion. From those, Industrial Info has identified eight projects with a high probability of occurring.

Copper Prices

Copper prices have remained high in recent months, influenced by operational setbacks at some mines, increased demand from the transition to clean energy sources and continued deployment of electric vehicles and data centers.

Recently, Cochilco, the Chilean mining agency, raised its 2026 copper price forecast from US$4.55 per pound to US$4.95 per pound, suggesting demand will remain higher than initially expected this year.

Key Takeaways

• BHP and Lundin's Vicuna project entails US$18.1 billion in investment.
• The asset's production could reach over 500,000 tonnes of copper per year.
• IIR tracks 64 copper projects in Argentina, totalling US$30.1 billion.

---

About IIR News Intelligence
IIR News Intelligence is a trusted source of news for the industrial process and energy markets, powered by Industrial Info Resources' Global Market Intelligence (GMI).

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, IIR is tracking over 250,000 current and future projects worth $30.2 Trillion (USD).