Global copper shortage worsens! BHP.US plans to double its investment in the Argentine copper mine project this year to $800 million.

Freeport-McMoRan (FCX.US) executive reveals that the company’s subsidiary, Vicuña Corp., plans to double its investment this year in a major global copper mine project located on the Argentina-Chile border, at an altitude of over 4,200 meters in the Andes Mountains.

According to Caterina Dzugala, Communications Director of Vicuña, this company, formed by Australia’s BHP and Canada’s Lundin Mining, may invest approximately $800 million this year in the Filo del Sol and Josemaría mines. These two projects are expected to become some of the most influential copper development projects worldwide.

Dzugala stated during a visit to the operational base at Batidero in San Juan Province, “By 2025, our investment will approach $400 million, and this year we plan to double that figure.”

The company reports that Filo del Sol and Josemaría together constitute the Vicuña mining area, which is one of the largest undeveloped copper, gold, and silver polymetallic deposits globally. Vicuña estimates the total investment in the area at around $5 billion, while local Argentine officials and industry insiders believe the total could reach as high as $15 billion.

Currently, the company has not confirmed the final investment amount; relevant data will be disclosed in a comprehensive technical report at the end of the first quarter of this year.

Since the closure of the Alumbrera copper mine in 2018, Argentina has had no copper production. Currently, governments worldwide and automakers are warning that copper, a key material for electrification, faces a supply shortage crisis. Argentina is seeking to re-enter the global copper market amid this opportunity.

The copper project is expected to begin production in 2030. Ore from the two mines will be transported to the central processing plant at Josemaría for concentrate processing. The overall mine life is estimated at 25 years.

Strategic Investment

Argentina’s President Milei is implementing a series of major incentive policies to attract foreign investment in mining. As Argentina’s flagship copper development project, Vicuña is entering a critical phase of advancement. Vicuña has applied to join the government’s “Large Investment Incentive Program,” which offers multiple tax and legal benefits for large export-oriented projects.

According to company data, the Vicuña mining area has proven copper reserves of 13 million tons, with inferred reserves of 25 million tons, along with abundant gold and silver resources.

However, building roads and power lines at such high altitudes in the Andes remains a significant challenge. The costs and responsibilities for infrastructure development are still debated over whether they should be borne by the government or private enterprises.

Vicuña’s geologist Juan Arrieta believes that the core value of this mining area lies precisely in its unexplored resource potential.

“The area of Filo del Sol is four times larger than Josemaría,” Arrieta said. “This deposit has been recognized as one of the most promising resource discoveries in the past 30 years worldwide.”