Copper’s resurgence marks a strategic shift for Argentina, as the country ceased copper production in 2018 when Minera La Alumbrera shut down its operations. Now, copper projects are regarded as the main drivers behind the sector’s long-term growth due to their larger investment scale and export potential compared to lithium. Eight major copper developments, such as the “Los Azules” project led by McEwen Mining in San Juan, could generate USD 10 billion annually by 2030, a critical contribution amid copper’s global supply challenges and market tightness. The recent discovery of substantial copper deposits at Lundin and BHP’s “Proyecto Vicuña” reinforces Argentina’s growing role as a copper supplier. This project is expected to emerge as one of the world’s largest copper, gold, and silver resource districts.
Political stability and regulatory reforms under the current government, including the RIGI regime ensuring tax and dividend stability, have catalyzed investor confidence. Provinces with mineral deposits such as San Juan, Catamarca, Salta, and Jujuy are primary beneficiaries, positioning Argentina as a credible competitor to Chile’s established copper export leadership. The country’s mineral exports still heavily rely on gold and silver, which currently account for 70% of mining exports, but their relevance is expected to decline as new base metals and critical minerals projects scale up.
Gold prices have strengthened amid global geopolitical tensions, further supporting Argentina’s mining revenues. New financial instruments like the local Cedear GLD certificate facilitate domestic investment in gold without requiring foreign accounts or direct metal purchase. Parallel to mining expansion, Argentina’s metalworking industry faces structural challenges, with 2024 production dropping over 12%, though positive demand is noted in energy-related sectors including mining equipment. Continued macroeconomic stability remains essential to sustain capital inflows and industrial scaling across the mining supply chain.
This article was curated and published as part of our South American energy market coverage.
