Milei is betting big on copper to ‘Make Argentina Great Again’
The air view of the La Isla Salt Office, which is located 3,950 meters high from sea level near the border with Argentina in Atacama region, taken on May 16, 2024.
Rodrigo Arangua | AFP | Getty Images
Argentina President Javier Milei is trying to unlock the copper potential of the South American country and is trying to increase global demand because of electrification and renewable push.
Milei, a self -defined Anarcho capitalist who won the shock election in 2023, announced a number of challenging reformist measures to traditionally balance the variable economy. “Make Argentina wonder again. “
As part of this pressure, Milei’s management hopes that the mining sector can play a key role, especially in terms of copper and lithium.
One of the flagship policies of Liberter’s flagship policies was to introduce the major investment incentive regime, or a plan designed to provide generous tax, trade and foreign exchange advantage for large -scale investors for 30 years.
According to Global Risk Intelligence Company Verisk Maplecroft, so far, over 30 billion dollars, projects have tried to enter the Argentina’s RICE. It is estimated that only copper represents more than all non -mining sectors and 16 billion dollars.
Big players including BHP– Glencore And Rio Tinto They are among those who make bold bets about Argentina’s copper and lithium potential, and Glencore and Rio Tinto’s senior executives travel soon to meet Milei on a trip to Buenos Aires.
Argentina President Javier Milei wacks hands with Rio Tinto Group CEO Jakob Stausholm on the floor of the New York Stock Exchange during the morning trade in New York on September 23, 2024.
Michael M. Santiago | Getty Images News | Getty Images
Ro Dhawan, CEO of the International Council of Mining and Metals (ICMM), a commercial organ that represents a third of the global industry, described Argentina as the “most exciting new copper story today.”
Dhawan also has other countries and judicial regions that may be geologically richer, but in a country in which a stable indigenous political environment intersects, and the basic infrastructure and other investments of the facilities and other mining industry.
Among the most important copper projects in Argentina are BHP and Lundin’s vicuna joint attempt.
The Vicuna region, which is located along the Chilean-Argentina border, is considered a geologically possible region. Indeed, deposits in Vicuna’s Josemiria and Fleet Del Left Mines estimated It contains 13 million metric tons of copper and 25 million tons of copper.
The policy consistency and social license will determine whether this is the moment of mining or another mirage of Argentina.
Mariano Machado
Verisk Maplecroft American Manager Analyst
The potential importance of BHP and Lundin’s Vicuna Copper Project for ICMM’s Dhawan is extraordinary.
“Western Australia’s ore is the same for copper to iron ore – and I’m not gently not to say it. It’s a brave comparison to make it, but it’s a comparison I really believe in.” He said.
BHP and Lundin’s Vicuna Copper project spokesman said last month that the two companies planned to apply to benefit within the scope of the rating. Reuters reported.
An opportunity of 47 billion dollars
Argentina’s renewed mining focus is expected to increase global copper demand in the coming years. It leaves the supply significantly behind An artificial intelligence burst and moving away from fossil fuels.
Analysts in Consultancy Cru Group estimated Argentina’s potential copper projects can represent an opportunity of about $ 47 billion for the economy by 2040.
This cumulative effect can be compared to Argentina, a 44 billion dollar rescue loan. accepted From the International Monetary Fund.
A government spokesman did not respond immediately to the request for comments when he was contacted by CNBC.
When ICMM’s Dhawan’s Dhawan, Argentina’s long -lasting explosion and explosion economic cycles can mean that Argentina’s copper dreams can be broken down once again, “Where is the question I will ask?” He said.
“I think people have adapted to a very important volatility expectation and I think this almost in favor of Argentina. I think two things happened, I think Argentina’s stability increased and the stability of the world decreased.”
Dhawan said it is not possible to predict in which direction Argentina will go, but that investors seem prepared for different political and economic scenarios and that the dominant risk was priced.
Argentina’s mining moment?
Although the American chief analyst of the US in Maplecroft, Mariano Machado, the Argentina has minerals to reshape the export base, he said, “Politics consistency and social license will determine whether it is a mining or other mirage of Argentina.”
“The country’s policy emissions continued to invest under potential levels, and the government’s voting for the government’s deputies (UP) has a risk of objection to the provisions of less private sector friendly sectors.” He said.
Salin mining operations in salt apartments of Salinas Grandes in Northwest Argentina.
VW Pictures | Universal Images Group | Getty Images
“A new mining explosion may prevent anti -mining activism.” “The issues related to water, the protection of glaciers and the wider human rights underlines permanent difficulties for companies to operate permanent social licenses.”
