Argentina, known more for grapes than Mining, has set a goal of becoming the world's top 10 copper-producing countries by 2030, Mining.com reported, citing Reuters. Friendly investment conditions will lure global mining giants such as Glencore and Lundin Mining to develop projects in the mountainous north.
Argentina's government forecasts that the South American country has copper projects that could support production of 793,000 tonnes of copper in 2030, less than Chile, the top producer, but close to the output of Australia and Zambia.
In 2018, Argentina closed its last copper mine. Currently, the country's copper production is close to zero. Rising global demand for copper, driven by electrification, has set the stage for Argentina to achieve its goal of becoming a major supplier of the metal to the world.
At the top of the list is Lunding Mining's Josemaria project in northern SAN Juan province, which is in the pre-construction phase and aims to produce 130,000 tonnes of copper a year.
It was followed by Glencore's $4.5bn El Pachon project; The Mara joint venture between Yamana Gold, Glencore and Newmont; First Quantum Minerals Ltd's Taca Taca and McEwen Mining's Los Azules project.
According to a recent government report, SAN Juan province is home to five of Argentina's eight largest copper projects, worth a total of $22bn. The other three are in the provinces of Mendoza, Catamaca and Salta, all on Argentina's northwestern border with Chile.
Astudillo told Reuters that Jose Maria's environmental impact statement had been approved; Los Azules has filed an environmental impact statement; The long-stalled El Pajon project is struggling to come on stream and is supported by local authorities.
The mine aims to complete engineering assessments, key licensing and infrastructure agreements and enter the financing phase this year. Once construction begins, it will take four to five years for production to begin, she said. Production is scheduled for 2026.
Argentina's copper reserves are estimated at 65 million tons, or 3 percent of global reserves, according to a 2022 government report. Peru, the world's second largest copper producer, accounts for 9 percent , while Chile, the top producer, accounts for one-third.
To be clear, Argentina is dealing with an economic crisis and a dire lack of foreign exchange reserves, with 100 per cent inflation and strict capital controls making the business environment extremely complicated. But growing demand has created opportunities for the energy mining industry.
The country still needs to improve its complex foreign exchange market and optimize the industry's tax system to ensure smooth progress in mining development by 2030, he added.
Franco Mignacco, president of Argentina's association of mining entrepreneurs, said the global electric car boom would be a major driver. The Strangis Group, a carmaker, invested $155m in Los Azules earlier this year.
"The projects we have are significant globally because copper demand is going to increase several times between now and 2050," he said.
By 2050, global copper demand will increase to 50 million tonnes, twice the level in 2020.
