By Fabian Cambero and Lucila Sigal
SANTIAGO/BUENOS AIRES, Aug 27 (Reuters) – Argentina and Chile are seeking to unlock billions of dollars in mining investment by advancing legal and regulatory frameworks that would allow companies to share infrastructure and resources across the Andes Mountains.
Officials from the two countries are due to hold fresh talks on Thursday under the Mining Integration and Complementation Treaty, a 1997 agreement revived in July after decades of limited progress, as they look to advance a new generation of copper projects.
The renewed push has gained momentum under conservative Chilean President Jose Antonio Kast, who took office in March, and Argentina’s libertarian President Javier Milei, as both administrations seek to attract private investment.
Chile’s Mining Minister Daniel Mas said this month the framework could help unlock more than $20.7 billion in investment and add 540,000 metric tons to annual copper production.
For investors, a key attraction is the potential for Argentine projects near the Andes border to access Chilean ports and tap into infrastructure linked to the world’s largest copper-producing industry, reducing costs, shortening transport routes and helping to bring new mines online.
Chile’s Mining Ministry said Thursday’s meeting will focus on advancing the technical review of projects that could benefit from the treaty.
“The development of bi-national projects … creates enormous opportunities for Chilean suppliers, for the use of Chilean infrastructure, for providing services to the Argentine industry and for developing partnerships,” said Joaquin Villarino, head of Chile’s Mining Council, which represents major mining firms.
Chile’s Deputy Mining Minister Alvaro Gonzalez told Reuters there was no fixed timeline for implementing the measures under consideration by the two governments.
PROJECTS IN THE PIPELINE
Representatives from three projects likely to benefit from the renewed framework are scheduled to meet in Santiago on Friday at a mining integration seminar. The projects are McEwen Copper’s Los Azules in Argentina, Glencore’s El Pachón and Vicuña, a cross-border copper project between Lundin Mining and BHP.
Vicuña has said it plans to use desalinated water from the Pacific Ocean, though did not specify whether it would rely on Chilean infrastructure, and declined to comment on the government-level talks.
Los Azules does not plan to use desalinated water or export through Chilean ports, but a company spokesperson said it was interested in the discussions given the project’s proximity to the border. BHP has not clarified whether the company will make use of the infrastructure already in place.
Argentina, long reliant on agricultural exports, has not produced copper since the closure of the Alumbrera mine in 2018. But a pipeline of projects under development could place it among the world’s top 10 copper producers by 2030, analysts say. Alongside Chile, it could become part of a key supply hub for a metal critical to the energy transition.
(Reporting by Fabian Cambero in Santiago and Lucila Sigal in Buenos Aires. Editing by Lucinda Elliott and Rod Nickel)
Comments