The Minister of Economics, Luis Caputoconfirmed the approval of a new one Mining project for the Incentive system for major investments (RIGI) which is being developed in Saint John and that, according to official estimates, will require one Investment of more than $600 million.
“The RIGI evaluation committee agreed to this Gualcamayo Project“, a gold and silver mining project in the province of San Juan with a total investment of $665 million,” reported the head of the Palacio de Hacienda in his official X account.
At the same time, Caputo explained that the initiative will allow extending the life of a mine in the depletion stage through the development of a “different type of mineralization.” will employ 1,700 people direct. The announcement is part of the official strategy to promote large-scale mining projects and encourage capital infusion into the sector. In this way, they already are 10 RIGI projects approved with a total investment of more than $25 billion.
In mid-December, the head of the economic department announced that the companies BHP and Lundin Mining submitted the application to join the incentive system with the aim of developing the Vicuña mining projectalso located in the San Juan area.
The official stressed that this is an initiative that could set a record in terms of foreign direct investment in Argentine mining, with an expected minimum payout of $2 billion during the first two years.
“BHP and Lundin Mining have just applied to RIGI for their Vicuña project. Vicuña is a gigantic copper, gold and silver project in the province of San Juan, possibly the largest foreign direct mining investment in the history of our country, for the development and construction of the Josemaría and Filo del Sol deposits,” said the head of the Ministry of Finance.
In this case, the companies applied under the “Projects by” modality Long-Term Strategic Export (PEELP) within the RIGI. This mechanism provides benefits for a period of 40 years, ten years longer than the standard term, and allows both the repatriation of profits and access to exemptions from export duties in shorter periods than provided for in the traditional system.
At the same time, the government is examining the possibility extend the RIGI registration period by one yeargiven the continued interest of the private sector in participating in the program. The decision will be made in the summer months. If the extension is not agreed, the deadline for submitting projects expires July 2026.
Daniel GonzálezMinister of Energy and Mines Coordination, noted that more than 27 projects focusing on the energy and mining sectors have already been submitted under the regime and that more proposals are in the preparation phase.
“We have not yet officially discussed the extension, but the decision should be made this summer as it expires in July 2026.” My personal recommendation will be to extend itbecause it reflects the economic model we strive for: without withholding taxes, with lower taxes and flexible procedures,” explained González at an industry event.
The current rules stipulate that companies have two years from the entry into force of the scheme to join. However, the executive branch may extend this period for up to one additional year after the original expiration.
When the government decides move forward with enlargementInterested companies have until then July 2027 present their projects. After this period has expired, you will no longer be able to claim the benefits provided for by law.
The RIGI arouses the interest of international companies in measures such as the reduction of the income tax rate from 35% to 25%, the abolition of export duties, the possibility of calculating VAT in advance of starting business and the possibility of resorting to international arbitration in the event of legal disputes.
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- Southern energy – owned by Pan American Energy (PAE) and Golar LNG -: They will install a barge in the Gulf of San Matías, Río Negro, to produce liquefied natural gas (LNG). The investment amounts to approximately $2,900 million over the next 10 years and will reach $6,878 million over the two decades of expected useful life.
- Rio Tinto: announced an investment of $2,724 million to expand the Rincón de Litio project in Salta Province. The plan calls for an increase in production capacity of up to 60,000 tons of battery-grade lithium per year. This involves the construction of a facility.
- Sidersa: will pay out 296 million US dollars for the construction of a state-of-the-art steel mill with a capacity of 360,000 tons of long steel per year, which will be located in the city of San Nicolás in the province of Buenos Aires. The aim is to use new machines to produce “green” steel, “more sustainable for the environment”. More than 300 direct and 4,000 indirect jobs would be created.
- PCR and Acindar: They will build a new wind farm in Olavarría that will require $255 million.
- Galan lithium mining: The Hombre Muerto Oeste (HMW) project in Catamarca province envisages an investment of US$217 million to produce high-quality lithium chloride. It is estimated that related exports will reach $180 million annually by 2029.
- Los Azules Project: The McEwen Cooper Company manages the Los Azules copper exploration and extraction project in San Juan. They estimate that around $2,672 million is needed.
- Timbues: With an investment of $277 million, Santa Fe will create a multi-purpose port with storage capacity for fertilizers, iron ores, steel products, grains and fuels.
- Gualcamayo Project: The goal is to extend the life of a mine in the depletion phase in San Juan. It will involve an investment of $665 million and will directly employ approximately 1,700 people.
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