Commodities major Glencore has applied to bring two of its flagship Argentine copper projects under President Javier Milei’s new Incentive Regime for Large Investments (RIGI), seeking to unlock $13.5-billion in development spending over the next decade.
The Baar, Switzerland-based miner said Monday it submitted applications for its 100%-owned El Pachón and Agua Rica projects. Capital investment is expected to reach $9.5-billion for El Pachón (Phase 1) and $4-billion for Agua Rica.
If approved, the RIGI would secure an “attractive and long-term economic and investment framework” along with investor protections.
“President Milei and his administration must be credited for introducing the RIGI. This framework has changed the investment landscape in Argentina, providing a key catalyst to attract major foreign investment to the country,” CEO Gary Nagle said in a statement.
“Today’s submission marks a significant step towards the development of El Pachón and Agua Rica. It also deepens our longstanding commitment to Argentina, a country to which we have been a proud partner across multiple commodities for over two decades,” he added.
The El Pachón deposit in San Juan province holds an estimated 6-billion tonnes of ore grading 0.43% copper, while the Agua Rica deposit in Catamarca province has about 1.2-billion tonnes at 0.47% copper, along with gold, silver and molybdenum. Agua Rica will use existing processing facilities at Alumbrera, 35 km away, as part of the MARA project.
The projects are expected to generate more than 10 000 direct jobs during construction and 2 500 permanent roles once operational, according to the company.
“The RIGI provides a key platform for the development of Argentina’s significant natural resource endowment,” said Martín Pérez de Solay, CEO of Glencore Argentina. “I am confident that the mining sector can be a major contributor to the Argentinian economy with the El Pachón and Agua Rica projects supporting the country’s ambition to become one of the world’s leading copper producers.”