Argentina is becoming one of the hottest spots in global mining. The country, which in recent years was associated with economic instability and capital controls, is now attracting billions of dollars in investment in copper and lithium. Its total project portfolio exceeds $62 billion, with around $42 billion linked to copper. Authorities expect copper exports to reach $20.6 billion within ten years, while lithium exports could rise to $12.1 billion.
Why have investors started to believe in Argentina? President Javier Milei has introduced radical market reforms. The key mechanism is the Large Investment Incentive Regime, or RIGI, which guarantees 30 years of tax, customs and foreign exchange stability for projects worth at least $200 million. The RIGI scheme has been extended until July 2027. Ten projects worth $25.5 billion have already been approved. Among the applicants are Glencore, with El Pachón and Agua Rica at a combined cost of more than $13 billion; First Quantum, with the $3.5 billion Taca Taca project; and McEwen Copper, whose Los Azules project is seeking $4 billion in financing. Argentina has not produced copper since the Alumbrera mine closed in 2018, but the new wave of projects could push the country into the world’s top ten copper producers by 2035. Its copper reserves are estimated at 44 million tonnes.
The road ahead, however, is far from simple. Argentina is facing a sharp political struggle over natural resources. Congress has passed a law opening high-altitude areas to mining, triggering mass protests under the slogan “water is not for sale.” Environmental groups and scientists warn of risks to the freshwater resources of the Andes. Court injunctions are not uncommon. For example, a court in La Rioja suspended operations at Vicuña Corp, a joint venture between BHP and Lundin Mining, for a week over alleged environmental risks.
The key risks lie at the provincial level. Provinces own the mineral resources, issue permits and can slow down projects despite federal support. San Juan, Catamarca and Salta are considered the most mining-friendly provinces, but even there projects can face delays and community resistance. Analysts warn that national policy is not the whole picture. Local politics, corruption, slow courts and inconsistent enforcement also need to be taken into account.
At the same time, Argentina is not turning away from China. Chinese companies, especially Ganfeng, remain deeply involved in the lithium sector. The authorities are playing a dual game: attracting Western financing while keeping ties with Beijing intact. According to experts at Geopolitical Mining, “the country is not choosing one bloc, but using competition to attract investment and accelerate projects.”
Argentina is going through a tectonic shift. From a country investors avoided, it is turning into a battleground for resources. Its success will depend on whether Milei can turn this window of opportunity into a stable strategy that outlasts his presidency.
Source: MINING.COM
