Argentina’s Milei wins first vote to ease glacier rules

Argentina’s Senate has approved a reform to the country’s glacier protection law, advancing President Javier Milei’s push to unlock billions in mining investment.

Lawmakers voted 40–31 in favour of the bill on Thursday, as environmental groups protested outside Congress. The proposed changes will now move to the lower house for further debate.

“Argentina made a big step forward to clarify the rules under which mining projects located in permafrost areas and near glaciers shall be able to get their environmental licenses to build and operate,” Mining Secretary Luis Lucero told The Northern Miner by email on Friday. “We are confident that this approval shall be confirmed by the House of Representatives relatively soon.”

The reform is good news for giant copper developments such as Glencore’s (LSE: GLEN) $9.5-billion capex El Pachón and the joint Vicuña project by BHP (NYSE, LSE, ASX: BHP) and Lundin Mining (TSX: LUN). The vote ties into Milei’s economic overhauls since his election in 2023, including his RIGI tax-incentive program to boost investment, especially in copper which is at near zero output compared with global leader Chile next door.

Law

The government says the reform is intended to “end arbitrary interpretations” of the 2010 glacier law, which it argues has hindered investment and economic development by creating uncertainty over what areas are protected.

The existing law makes projects difficult by treating dry rock glaciers the same way as ice glaciers needed to supply water to local communities. Many of the formations have little or no ice and shouldn’t be used to block projects, the country’s Chamber of Mines argues.

Environmental groups oppose the changes, saying they would weaken safeguards for critical water resources. Greenpeace Argentina said that to some extent, all Argentines will be affected by water shortages if the changed law is approved.  

Other mining projects standing to benefit from the reform include McEwen’s (TSX, NYSE: MUX) Los Azules project, Aldebaran Resources’ (TSXV: ALDE; US-OTC: ADBRF) proposed Altar mine and First Quantum Minerals’ (TSX: FM) $3.6-billion capex Taca Taca.

Provinces

If enacted, the legislation would allow provinces to set their own standards for protecting glaciers and periglacial environments.

“Provincial authorities with jurisdiction on mining-environmental matters will have the ability to make a judgement based on an Environmental Impact Report about the hydric relevance of the permafrost areas and glaciers within a project, in order to make a decision on the green or red light to it, mitigation measures, and other relevant aspects,” Lucero said.

“Decisions will start to be made grounded on scientific studies of the highest standards instead of the perceived plain prohibition that was construed from the law as it reads today.”

An Argentine federal glacier inventory in 2018 mapped more than 16,000 glacial forms across its side of the Andes and where parts of proposed mining projects infringed on them.

Secretary Lucero and other Argentine government and industry officials are due in Toronto for a panel at the Prospectors and Developers Association of Canada annual convention. The discussion on Monday morning will revolve around topics such as how RIGI projects are determined.