The joint venture between BHP and Lundin Mining in Argentina, Vicuña Corp, is investing over $400 million to advance a multi-billion dollar copper project near the Chilean border. The project is expected to become Argentina’s next major copper production hub. Established in January this year following the completion of the acquisition of Filo Corp, the joint venture now controls the Filo del Sol deposit spanning the Argentina-Chile border and the Josemaría deposit located in San Juan Province, Argentina.
Since completing the acquisition, Vicuña has commenced testing and preliminary construction work at the Josemaría copper mine, with plans to obtain formal approval and begin production by 2030. After confirming that the resource volume exceeds initial expectations, the company extended the mine’s operational life from 19 to 25 years and set the daily ore processing capacity at 175,000 tons. Although the final development costs are still being calculated, based on the current budget, Vicuña has become one of the largest foreign investors in Argentina this year.
The company is also preparing to apply for tax, customs, and foreign exchange incentives under Argentina’s Large Investment Incentive Regime (RIGI). Vicuña is expected to submit a technical report to the board by March, detailing the project timeline, production forecasts, and processing plans.
To advance the next phase of work, the company appointed mining industry veteran Ron Hochstein as CEO this week. With over 30 years of industry experience, Hochstein previously served as Chairman and CEO of Lundin Gold and will officially assume his role on November 7.
Argentina suspended copper production in 2018, but with multiple projects underway, the country is expected to re-enter the ranks of the world’s top ten copper producers.
