Key facts
- Argentina and Chile are advancing cross-border mining frameworks to attract investment.
- The initiative is based on a revived 1997 treaty aimed at sharing infrastructure across the Andes.
- The framework could unlock over $20.7 billion in investment and significantly boost copper production.
- Key projects like McEwen Copper's Los Azules and Glencore's El Pachón could benefit.
- The goal is to leverage Chile's existing infrastructure and ports for Argentine mining projects.
Argentina and Chile are working to unlock significant mining investment by reviving and advancing a cross-border framework that allows companies to share infrastructure and resources across the Andes Mountains. Officials from both nations are set to hold talks on Thursday regarding the Mining Integration and Complementation Treaty, originally signed in 1997 and revitalized in July.
This renewed push, supported by Chilean President Jose Antonio Kast and Argentine President Javier Milei, aims to attract private capital for new copper projects. Chile's Mining Minister Daniel Mas indicated that the framework could unlock over $20.7 billion in investment and boost annual copper production by 540,000 metric tons. A key benefit for investors is the potential for Argentine projects near the border to utilize Chilean ports and infrastructure, thereby reducing costs and expediting the development of new mines.
Chile's Mining Ministry stated that the upcoming meeting will focus on the technical review of projects eligible under the treaty. Joaquin Villarino, head of Chile's Mining Council, highlighted the substantial opportunities for Chilean suppliers and infrastructure providers to support Argentine industry through bi-national projects. However, Chile's Deputy Mining Minister Alvaro Gonzalez noted that there is no fixed timeline for implementing the proposed measures.
Several projects are poised to benefit, including McEwen Copper's Los Azules, Glencore's El Pachón, and the cross-border Vicuña project involving Lundin Mining and BHP. While Vicuña plans to use desalinated water from the Pacific, its reliance on Chilean infrastructure remains unspecified. Los Azules, though not planning to use Chilean ports or desalinated water, expressed interest in the discussions due to its proximity to the border. BHP has not clarified its intentions regarding the use of existing infrastructure.
Argentina, which has not produced copper since the Alumbrera mine closed in 2018, has a pipeline of projects that analysts predict could position it among the world's top 10 copper producers by 2030, potentially forming a crucial supply hub with Chile for the energy transition.