BHP and Lundin Mining have announced plans for what they are calling the largest foreign direct investment in Argentina's history, committing approximately US$ 18 billion over the upcoming ten years. This investment is centered around the Vicuña project, which encompasses significant deposits of copper, gold, and silver located in San Juan. The companies estimate that this project will average at least US$ 6 billion in annual exports throughout its operational lifespan, thereby matching the total output of the current mining sector in Argentina.

The mining production and subsequent exports are expected to ramp up in phases beginning in 2030. Initially, US$ 7.1 billion will be invested between 2027 and the time when the first copper concentrate is sold. This initial phase is crucial, paving the way for the project to become one of the top five global producers of these minerals by the middle of the next decade. Moreover, the companies project that recovery of the investment will take just over eight years, with an attractive return rate of nearly 15% and a net present value of US$ 9.5 billion, which is based on very conservative future price estimates for the metals. Under current market conditions, the payback period could be shortened to just over five years.

This notable investment not only represents a significant financial influx into the Argentine economy but also speaks to the potential development of the country’s mining sector. The Vicuña project stands to bolster both local employment and the national economy while enhancing Argentina’s position in the global mining landscape. Such large-scale foreign investments could attract more international players into the region, fostering growth and competition within the sector that could yield additional benefits for the country's economic landscape.