{"id":164870,"date":"2025-08-23T21:32:13","date_gmt":"2025-08-23T21:32:13","guid":{"rendered":"https:\/\/teknomers.com\/en\/the-copper-paradox-carrying-out-major-projects-in-rigi-amid-an-international-price-collapse\/"},"modified":"2025-08-23T21:32:14","modified_gmt":"2025-08-23T21:32:14","slug":"the-copper-paradox-carrying-out-major-projects-in-rigi-amid-an-international-price-collapse","status":"publish","type":"post","link":"https:\/\/teknomers.com\/en\/the-copper-paradox-carrying-out-major-projects-in-rigi-amid-an-international-price-collapse\/","title":{"rendered":"The Copper Paradox: Carrying Out Major Projects in Rigi Amid an International Price Collapse"},"content":{"rendered":"\n
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<\/picture>
The alumbar was, until 2018, the only copper mine of active industrial scale in Argentina<\/figcaption><\/div>\n

In recent years, Argentina has increasingly recognized the importance of \u00a0copper\u00a0 in the global economy, particularly in the context of the \u00a0energy transition\u00a0. With rising demands for \u00a0renewable energy technologies\u00a0, the country is embracing mining as a vehicle for economic growth. As a testament to this trend, eleven out of twenty investment projects that have sought to participate in \u00a0Argentina’s Investment Incentive Regime for Large Investments (Rigi)\u00a0 are focused on mining, specifically copper production.<\/p>\n

Among these projects, substantial investments are being proposed. For instance, three major contenders including \u00a0Los Azules\u00a0 by \u00a0McEwen Copper Inc.\u00a0, as well as \u00a0Pach\u00f3n\u00a0 and \u00a0Agua Rica\u00a0 led by the Swiss-based \u00a0Glencore\u00a0, collectively foresee investments of approximately \u00a0USD 15,972 million\u00a0. This figure accounts for nearly half of the total projected investment of \u00a0USD 33,000 million\u00a0 from the twenty projects that have applied under Rigi.<\/p>\n

Additionally, the \u00a0Vicu\u00f1a project\u00a0, a partnership between Canada\u2019s \u00a0Lundin\u00a0 and Australia\u2019s \u00a0BHP\u00a0, anticipates investments of around \u00a0USD 15,000 million\u00a0 over three decades. This indicative trajectory signifies copper\u2019s rising prominence in Argentina\u2019s economic landscape, with expectations that investments in copper projects could exceed \u00a050%\u00a0 of the total under Rigi by the time the Vicu\u00f1a project is operational.<\/p>\n

The copper boom is further driven by the government\u2019s initiatives, such as the establishment of a \u00a00% export duty on 231 mining products\u00a0, which notably includes copper. This measure aims to attract direct investments and resultant export revenues, marking a shift in strategy that seeks to enhance the \u00a0external balance\u00a0 of the country.<\/p>\n

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However, the ongoing geopolitical tension and new \u00a0tariff restrictions\u00a0 may challenge these optimistic projections. Former US President \u00a0Donald Trump’s\u00a0 policies regarding copper imports have created uncertainty, as they exempt refined copper cathodes from tariffs. This strategic shift complicates market dynamics and carries repercussions for global copper pricing.<\/p>\n

In the United States, the introduction of tariffs was aimed mainly at semi-finished products, such as pipes and cables. The investigation into copper imports initiated under Section 232 has led to a substantial increase in U.S. copper reserves, with inventories ballooning by \u00a0165%\u00a0 since early February. Analysts have noted that the U.S. is heavily reliant on copper imports to meet its internal demand, with refined copper constituting a significant portion of imports due to heightened needs for electric vehicles and renewable energy infrastructure.<\/p>\n

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A manifestation of opposition to the advance of the copper project “Resolution”, in the state of Arizona Reuters\/Stephanie Keith\/File Photo<\/figcaption><\/div>\n

Despite these challenges, the U.S. remains the second-largest consumer of copper globally, second only to China. In 2024, it is estimated that the major copper-producing countries will include \u00a0Chile\u00a0 and the \u00a0Democratic Republic of the Congo\u00a0, followed by \u00a0Peru\u00a0 and \u00a0China\u00a0.<\/p>\n

The evolution of Argentine copper mining has taken a promising turn as the market anticipates a potential doubling of global copper consumption by 2040. Supporting this growth is evidence from the \u00a0International Energy Agency\u00a0, which underscores copper’s definitive role in the \u00a0sustainability\u00a0 arc of \u00a0clean technology\u00a0.<\/p>\n

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With an annual production close to \u00a0one million tons\u00a0, five prominent copper projects in Argentina could potentially generate revenues of over \u00a0USD 4,000 million\u00a0 per year between \u00a02031\u00a0 and \u00a02040\u00a0. The overall anticipated investments under Rigi may surpass \u00a0USD 50,000 million\u00a0, reinforcing optimistic projections regarding the sector’s economic contributions.<\/p>\n

Yet challenges remain. While previously invested primarily in the \u00a0Vaca Muerta\u00a0 region, the balance has now tipped towards mining investments, with projects such as \u00a0El Pach\u00f3n\u00a0 and \u00a0Agua Rica\u00a0 coming to the forefront. As of now, Argentina’s copper industry awaits recommencement of large-scale operations since the closure of the last operational copper mine in 2018.<\/p>\n

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The Rigi initiative highlights the potential of significant investments in local mining projects. Currently, notable projects include expansions, exploration ventures, and copper and lithium productions, with total projected investments nearing \u00a0USD 13,000 million\u00a0. The trajectory of the copper industry, burdened with historical challenges but buoyed by new investment incentives, indicates a hopeful future for Argentina’s mining sector.<\/p>\n


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General News – 2<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"

The alumbar was, until 2018, the only copper mine of active industrial scale in Argentina In recent years, Argentina has increasingly recognized the importance of \u00a0copper\u00a0 in the global economy, particularly in the context of the \u00a0energy transition\u00a0. With rising demands for \u00a0renewable energy technologies\u00a0, the country is embracing mining as a vehicle for economic […]<\/p>\n","protected":false},"author":1,"featured_media":164871,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[4],"tags":[7140,976,5445,3339,187,36756,4670,22241,1062,1478,41010],"class_list":["post-164870","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-mazagine","tag-carrying","tag-collapse","tag-copper","tag-international","tag-major","tag-north-america","tag-paradox","tag-phoenix","tag-price","tag-projects","tag-rigi"],"_links":{"self":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/164870","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/comments?post=164870"}],"version-history":[{"count":0,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/posts\/164870\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media\/164871"}],"wp:attachment":[{"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/media?parent=164870"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/categories?post=164870"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/teknomers.com\/en\/wp-json\/wp\/v2\/tags?post=164870"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}