Argentine mining experienced a pivotal year in 2025. The accelerated rise in international gold, silver and copper prices, coupled with a more favorable local environment for the sector, accelerated investments in many projects that were in the pipeline.
This trend was crowned this week with the approval of the provincial legislature for Mendoza for copper production for the first time. This is permission that is expected cause a contagious effect in other provinces, especially in Chubutwhich has one of the largest silver reserves in the world.
On Tuesday, the provincial Senate approved the project’s Environmental Impact Statement (DIA). PSJ Copper MendocinoLocated on the side of National Road 149, 45 km north of Uspallata, in the department of Las Heras, almost on the border with San Juan. The authorization to become law is still pending promulgation.
It is an area that was explored between 2006 and 2008 will require an investment of $560 million start production from 2028.
The requirement that environmental approval must be granted by the Legislature of Mendoza It was incorporated into Provincial Law 7722 in 2007which regulates mining activity during the government of Julio Cobos.
In 2008, the Canadian company Marimaca Copper Corp. (formerly Coro Mining) presented the first environmental impact study, which was rejected by the legislature. In 2013, the company sold its assets in the country to a group consisting of the mining company Switzerland Zonda Metals GmbH (75%) and by the local company Alberdi Energía (25%), belongs to the Alberdi Group, owned by Martin Rappallinicurrent president of the Argentine Industrial Union (UIA).
This year, shareholders presented a new environmental report on January 10th. In the following months, evaluations were carried out and A public hearing took place with record participationuntil the government approved the environmental impact statement and sent it to the legislature, where it received its endorsement this week.
“With this law ratification In the next few days we will start the feasibility phase of the projecta technical process that will take about a year. It is an economic, financial, logistical, technical and environmental analysis that we carry out to complete detailed engineering studies, cost analysis and comprehensive construction planning. “In the middle of the process, we are facing advanced tasks in order to complete the financing of the project as quickly as possible,” he emphasizes THE NATION Fabián Gregorio, CEO of PSJ Cobre Mendocino.
Then it is expected that the The construction phase lasts between 18 and 24 monthsis scheduled to begin production in 2028. The project plans production 40,000 tons of fine copper per year, accompanied by approximately 40,000 ounces of gold per year as a byproduct. The initial mine life would be 16 years. with the possibility of expansion up to 27.
During the construction phase There will be a peak demand of 3,900 direct and indirect jobswhile around 2,400 are needed in the production phase.
Although Mendoza produced uranium in San Rafael in the 1990s, It has been more than 25 years since a metal mine of any size was operating in the province.. The decisive factor for this was the impulse of the current governor Alfredo Cornejo, who said that “Mining will be the engine of progress.”
His position created divisions in the province between those who see exploitation of the resource as an investment and those who see it as a curse. In fact, the meeting took place in the Senate while a demonstration with protest signs gathered in front of the House “Environmentally harmful mining” -regarding PSJ- and with slogans like“You can’t touch the water”.
At $4.85 per pound, copper prices are at historic levels, responding to increasing electrification – electric cars, solar panels and wind turbines. After gold and silver, copper is the best conductor of electricity, but at a much cheaper price making it the key mineral for the last mile of electric transportation.
The world now consumes 25 million tons annually, but it is estimated that this number is lower will reach 35 million in 2035. To make up that $10 million difference, mining companies are turning to Argentina, the only country with huge, untapped reserves.
Thus, Argentina today has a unique opportunity to place copper on the global market. For this reason, the most important companies in the industry – such as Glencore, BHP and Lundin Mining– are already present in the country.
Chile, the undisputed leader, produces around 6 million tonswith a historical average price of $3.20 per pound. However, the scenario changed: The value is currently around $4.85which reflects the strong demand pressure.
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