Argentina is trying to turn its vast copper reserves into an economic lifeline, with President Javier Milei betting big on mining to help stabilize the country’s fragile finances and plug into the global electrification boom.
Since winning power in 2023, Milei has launched an aggressive reform agenda, including the Large Investment Incentive Regime (RIGI) — a scheme that offers sweeping tax, trade and foreign exchange benefits to large-scale investors for 30 years. According to Verisk Maplecroft, about $30 billion worth of projects have already applied for entry, with mining accounting for three-quarters of them. Copper alone represents $16 billion in planned investment.
Global majors including BHP, Glencore and Rio Tinto are circling Argentina, sending senior executives to Buenos Aires for meetings with Milei. Ro Dhawan, CEO of the International Council on Mining and Metals, called Argentina “arguably the most exciting new copper story today,” pointing to its combination of geology, infrastructure and political stability compared with rivals.
The flagship project is the Vicuna District, a joint venture between BHP and Lundin straddling the Chilean border. Its Josemaria and Filo del Sol deposits are believed to contain 13 million metric tons of measured copper and another 25 million inferred. Dhawan likened its significance to “what Western Australia was to iron ore.”
The stakes are high. Analysts at CRU Group forecast Argentina’s copper pipeline could deliver $47 billion in economic impact by 2040, rivaling the country’s $44 billion IMF bailout. Copper demand is expected to surge globally thanks to artificial intelligence infrastructure and the energy transition, while supply lags behind.
But challenges remain. Argentina has a history of boom-bust cycles, with shifting policies spooking investors. Opposition lawmakers from the Union for the Homeland party resisted the RIGI bill, raising concerns it could be rolled back by future governments. Social tensions also loom, with activists warning about water use, glacier protection and human rights issues tied to large-scale mining.
Mariano Machado of Verisk Maplecroft summed it up bluntly: “Policy consistency and social licence will determine whether this is Argentina’s mining moment or another mirage.”
For now, Milei is pushing hard to convince global miners that Argentina can be a reliable partner, and that its copper reserves can anchor not just the country’s economy, but the global green transition.
