Glencore seeks $13 billion in incentives for Argentina copper projects
Glencore Plc filed applications to have two copper projects with combined capital expenditure estimated at more than $13 billion included into Argentina’s investment incentive program.
The Switzerland-based commodities firm is seeking the tax, customs and currency exchange benefits offered under the government program for El Pachon in San Juan province and Agua Rica in Catamarca, the company said in a statement Monday. The program is known by its Spanish acronym as Rigi.
Glencore joins a growing list of miners seeking access to the program in a country that was once a pariah for foreign investment because of capital controls and state intervention. Argentina is regaining the confidence of companies as President Javier Milei offers a way to bulletproof their capital commitments.
“This framework has changed the investment landscape in Argentina, providing a key catalyst to attract major foreign investment to the country,” Glencore chief executive officer Gary Nagle said in the statement. “Today’s submission marks a significant step towards the development of El Pachon and Agua Rica.”
The El Pachon and Agua Rica projects are expected to require investments of $9.5 billion and $4 billion, respectively, if Glencore decides to proceed with their development. They bring the number of Rigi applications to 20, totaling $33.6 billion, Economy Minister Luis Caputo wrote in a X post.
El Pachon is of particular interest to the copper market given its scale and location in San Juan. The province is set to become a new mining hub when the industry is struggling to keep up with growing demand for copper, a key component in the electrification push. BHP Group Ltd., and McEwen Copper Inc. are also piling into San Juan.
Argentina has already had success with lithium, a mineral that’s critical to making batteries for electric cars. Copper projects, though, tend to be bigger, more expensive and more destructive. And Argentina has been a particularly precarious destination for prospectors since it is largely focused on farming and oil, not metals like regional peers Chile and Peru.
(By James Attwood)
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