Argentina's Ministry of Mines expects the country's copper exports to increase to $5 billion by 2030, when seven projects will come on line, according to the BNAmericas website.
The seven projects, including Josemaría, El Pachón, Mara, Taca Taca, Filo del Sol, San Jorge and Los Azules, will have a total investment of $20.4 billion and a total production capacity of 1.2 million tons per year. production capacity of 1.2 million tons per year.
The Chilean Copper Commission (Cochilco) forecasts that the average copper price in 2024 and 2025 will be US$4.3/tonne and US$4.25/tonne, respectively. copper prices have risen by nearly 23% since March, mainly due to a reduction in copper supply, including the closure of the Panamanian copper mine, and a decline in Anglo American's copper production in Chile.
According to Nadav Rajzman, an economist at the Argentine Mining Association (CAEM), copper projects in Argentina depend heavily on the stability of the country's political economy, “with a tax burden that exceeds that of any other copper-producing country, such as Chile and Peru.”
José María
The José María copper mine, located in the province of San Juan and owned by Lundin Mining, will require an investment of $4 billion, with the next two years as a pre-construction phase.
The project is expected to have a mine life of 19 years and to produce 131,000 tons of copper per year.
Lundin plans to conduct drilling to find new deposits, so the life of the project could be extended.
El Pachón and Mara
Located in San Juan province, El Pachón is a $5.6 billion project that Canaccord expects will produce 350,000 tons of copper annually, and is currently undergoing feasibility and EIA studies, as well as drilling and engineering geological studies.
Last year, Canaccord acquired the Mara copper mine, which is in the feasibility stage and could produce 200,000 tons of copper annually within the first 10 years of production, requiring an investment of $2.78 billion.
Simon Catchpole, president of consultancy Andinos, believes that despite the risks to the financing plan announced by Canon in 2022, “the project is politically pro-Argentine and the company has the capacity to build it successfully.”
Tacataca
The Tacataca copper mine, located in the Salta province and owned by First Quantum, has an estimated investment of $3.6 billion.
The company is carrying out pre-construction design work and is also awaiting approval of the EIA report.
The project could produce 227,000 tons of copper per year in the first six years of operation and an average of 200,400 tons of copper per year for 32 years thereafter.
Ferro de Sol.
Located in the Argentine province of Juan and the Atacama region of Chile, the project is currently in the pre-feasibility stage and is estimated to require an investment of US$1.8 billion, with a mine life of 14 years and the capacity to produce an average of 66,000 tons of copper per year. Its success is dependent on license approvals in both countries.
San Jorge
The San Jorge copper mine is located in the province of Mendoza and is owned 50/50 by Solway Investment and Aterra Capital.
The project has an estimated investment of US$184.5 million and a mine life of 16 years, with a capacity to produce 40,000 tons of copper per year.
It is currently in a pre-feasibility study and is awaiting environmental permit approval.
Los Azules
The copper mine, owned by Canada's McEwen, is expected to have a construction investment of US$2.46 billion and will produce 192,500 tons of copper in the first two years of operation and an average of 180,000 tons of copper per year for the next 27 years.
In a recent report, McEwen emphasized that Los Azules has higher reserves and grades than José María at a lower cost due to lower elevation and proximity to the grid. Similarly, Los Azules could have a market capitalization of $800 million, compared to Jose Maria's $485 million.
The company announced the discovery of another large porphyry copper mine 3 kilometers from Los Azules.
Copper production
Mom Mining's Martín Bronce mine in Jujuy is currently the country's only producing copper mine. It produces between 300 and 400 tons of copper per month. The copper is exported to Chile for processing and re-export.
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