Argentina province OKs $559M copper mine

Argentina’s Mendoza province has approved its first large-scale mining project in more than two decades after giving the greenlight to PSJ Cobre Mendocino, a joint venture between Switzerland’s Zonda Metals and Argentine company Alberdi Energy.

This week, Mendoza’s Senate endorsed Cobre Mendocino’s environmental impact statement, ending a lengthy review process that attracted groups such as Greenpeace over water and waste concerns. Now the project enters the feasibility reports stage. It follows more than 13 years of studies, a recent 10-day public hearing and more than 9,500 written submissions with public support exceeding 60%.

“This institutional decision allows us to take another step in a process that has been long, transparent and highly participatory,” CEO Fabián Gregorio said in a statement. “We are now entering a technical feasibility stage, during which we will continue building the project together with the community, institutions and productive stakeholders.”

Argentina, despite boasting an abundance of copper resources, has not produced the metal since the closure of the Alumbrera mine in 2018. On the federal level, Argentine President Javier Milei is keen to attract mining development through an incentive program known as RIGI. Recipients include McEwen’s (TSX, NYSE: MUX) Los Azules copper project. 

16-year mine

Located in Uspallata, in the department of Las Heras, the Cobre Mendocino mine is expected to produce 40,000 tonnes of copper concentrates annually over a 16-year life. It contemplates an initial capital investment of $559 million and a construction period of 18 to 24 months.

The company has maintained that the project will use a conventional flotation process to produce copper concentrates without using any illegal substances. The project is expected to generate 3,900 jobs during construction and about 2,400 while operating, including both direct and indirect employment.

With legislative approval, Cobre Mendocino is planning detailed engineering studies, cost and financing analysis to feed into feasibility reports. Operations, closure planning, and markets will also be assessed before a potential construction decision.