In a significant development for Argentina’s mining sector, an initial investment of US$7 billion has been confirmed for the Vicuña mining megaproject, a venture projected to necessitate a total investment of US$18 billion throughout its operational lifespan. This announcement positions it as potentially the largest foreign direct investment in Argentina. The project is a collaboration between Argentine and Chilean interests, representing a major step towards enhancing the mineral output of the region.

Vicuña Corp, the consortium formed by the Australian company BHP, recognized for operating la Escondida the world’s largest copper mine, and the Canadian group Lundin Mining, released the Preliminary Economic Assessment for the project. This assessment represents a comprehensive technical review of the mining deposits, specifically the Josemaría and Filo del Sol deposits, that are expected to feed the project. The megaproject is anticipated to rank among the top five operations globally for the extraction of copper, gold, and silver, thereby strengthening Argentina’s position in the mining industry.

The implications of this megaproject are significant, not only for Argentina and Chile but also for the global mining market. As countries push towards a greener economy, the demand for metals like copper becomes increasingly crucial in renewable energy technologies. The successful initiation of Vicuña may have ripple effects across investment patterns in the region, further attracting foreign investments and signaling a renewed confidence in Argentina’s economic framework, especially within the mining sector where foreign capital is essential for development.