Chile and Argentina Reactivate 1997 Mining Integration Treaty to Advance Cross-Border Projects Worth Over $20 Billion

Chilean Undersecretary of Mining Álvaro González and Undersecretary of Foreign Affairs Patricio Torres joined Argentine Mining Secretary Luis Lucero and Integration Director Marcos Stancanelli at the Buenos Aires meeting, which concluded a reactivation process initiated in May 2026. The treaty, originally signed in 1997, established the legal framework for developing mining projects along the shared border. Its revival coincides with Argentina’s largest copper investment cycle since the 2018 closure of Bajo de la Alumbrera mine.

González stated the treaty will make border mining more efficient with lower costs by leveraging synergies and increasing critical mineral supply to global markets. He emphasized the Administrative Commission’s reactivation three months into the current administration creates a national challenge to capture economic value from the alliance. The next integration phase must evolve toward productive integration where both countries share infrastructure, suppliers, technological capabilities and value creation. Success will be measured not by project quantity crossing the Andes but by Chile’s capacity to transform the $20.7 billion portfolio into increased investment, employment, innovation and regional opportunities.

José Morea, director of binational project Vicuña and president of San Juan’s Mining Chamber, participated in the commission meeting and described it as an excellent opportunity to advance Specific Additional Protocols required for Vicuña’s binational character. He characterized these tools as key to accelerating investments, organizing processes, providing predictability and facilitating integrated cross-border mining development.

Argentine mining suppliers from San Juan province expressed concern that treaty reactivation without competitiveness measures could deepen difficulties for local firms. The sector maintains Chilean companies operate with significantly lower costs in logistics, financing, tax burden and input access, creating advantages in binational project procurement. Business chambers warned this cost gap, estimated at up to 50 percent in some cases, could reduce participation by San Juan suppliers in major copper development contracts.

Chile simultaneously advanced its foreign investment agenda during the treaty meeting week by hosting high-level delegations from United Arab Emirates and Japan seeking to secure copper and lithium supply. González identified clear objectives of exploring investment opportunities, cooperation and sector strengthening with countries providing substantial contributions to operations including decarbonization, desalinated water use, infrastructure project financing and greenfield exploration.