Vicuña Obtains Final Approval for RIGI and Accelerates Argentina's Largest Copper Project

The government officially announced the entry of the Vicuña project into the Regime of Incentives for Large Investments (RIGI), a step that consolidates the development of the country's largest copper venture and one of the most important in the world. Through Resolution 1154/2026 of the Ministry of Economy, published this Monday, the adhesion of the project developed by Vicuña Argentina S.A., which includes BHP and Lundin Mining, was approved under the category of Strategic Long-Term Export Project (PEELP).{#p-1785435891613-50148}

This decision represents a milestone for Argentine mining and comes just days after the National Gas and Electricity Regulatory Agency (ENReGE) granted the Certificate of Convenience and Public Necessity (CCyNP) for the construction of high-voltage electrical infrastructure that will supply the Josemaría project and reinforce the energy system of northern San Juan, a condition considered strategic for advancing the investment.{#p-1785435891613-12584}

The resolution from the Ministry of Economy approves the investment plan presented by Vicuña Argentina to develop the Josemaría and Filo del Sol deposits in an integrated manner, as well as to execute all the necessary infrastructure for exploitation, including a concentration plant, leaching facilities, roads, water supply systems, electrical infrastructure, camps, and auxiliary works.{#p-1785435891613-74097}

The project is framed within the subsector of first and second category minerals - excluding lithium and potassium - and aims to extract, produce, and export copper, gold, and silver from San Juan.{#p-1785435891613-85231}

An initial investment of USD 9.737 billion with the potential to reach USD 18 billion {#p-1785435891613-72217}

According to the official documentation presented to the RIGI Evaluation Committee, Vicuña committed to an initial investment of USD 9.737 billion, of which USD 9.024 billion corresponds to computable assets, significantly exceeding the minimum requirements established by Law 27.742.{#p-1785435891613-68315}

The investment plan will be developed in two major stages. The first runs from July 2024 to December 2026 and involves disbursements of USD 1.128 billion. The second will extend from 2027 to 2031 and contemplates additional investments of USD 7.895 billion.{#p-1785435891613-14810}

The company also committed to invest USD 2.009 billion during the first two years following the approval of the regime, while the maximum deadline to meet the minimum required investment was set for December 31, 2028.{#p-1785435891613-3633}

However, the economic potential of the project far exceeds these figures. According to the Preliminary Economic Assessment (PEA) presented by the company, the comprehensive development of Vicuña will require approximately USD 18 billion, making it one of the largest private investments in Argentine history.{#p-1785435891613-40757}

Resolution 1154/2026 formalized the incorporation of Vicuña into RIGI as a Strategic Long-Term Export Project.{#p-1785435891613-84402}
Vicuña Argentina

The development scheme includes three successive stages: the first linked to the development of Josemaría, the second focused on the oxides of Filo del Sol, and the third aimed at exploiting the sulfur resources along with the additional infrastructure needed to support the growth of the complex.

According to this assessment, during its first 25 years of operation, the project could produce an average of 395,000 tons of copper, 711,000 ounces of gold, and 22.2 million ounces of silver per year, with an initial lifespan exceeding seven decades.

The electrical infrastructure has unlocked the project's advancement.

The official entry into the RIGI occurs after ENReGE approved the High Voltage Electrical Infrastructure Project (PIEAT), a work considered key for the development of Vicuña and which was subject to an extensive technical and regulatory process initiated in 2023.

The project includes the transformation of the existing infrastructure to operate at 500 kV, the construction of a new extra high voltage line of approximately 167 kilometers between Rodeo and Chaparro, a new transformer station with GIS technology, and a 220 kV line of another 93 kilometers to Josemaría.

All infrastructure will be fully financed by Vicuña and, once completed, will be integrated into the Argentine Interconnection System (SADI), without transferring costs to users.

For the company, the authorization represents much more than a permit to supply the mine. "Obtaining the CCyNP represents a very important step for the development of the project and, at the same time, constitutes an opportunity to leave strategic infrastructure that will strengthen the electrical system of San Juan and support the province's growth over the coming decades," said José Morea, Country Director of Vicuña.

In addition to ensuring energy supply for the mining complex, the works will increase the electric transport capacity to the northwest of San Juan, eliminate structural restrictions of the system, and facilitate future regional interconnections, including the Rodeo-Chaparro-La Rioja Sur corridor planned by national planning.

The new Chaparro node also opens the possibility of developing future renewable generation projects, especially solar parks, in one of the regions with the highest radiation in the country.

More jobs, suppliers, and benefits from the regime.

The project continues to advance in parallel with preparatory tasks for construction. In recent months, it has incorporated its own fleet of 40-ton off-road trucks intended for the initial earth movements, preparation of the area where the future concentrator plant will be installed, and improvement of internal roads.

Currently, Vicuña employs 2,743 workers globally, of which 2,580 perform tasks in Argentina. The workforce includes 617 direct employees and 1,963 contractor workers.

91.9% of the total staff is Argentine, and more than 81% of direct workers come from San Juan, while training programs continue to incorporate labor from nearby communities.

The economic effect is also reflected in the supply chain. Today, the project works with 245 active suppliers, consisting of 45 goods supplying companies and 200 service providers. Of that total, 150 companies are from San Juan, which represents 61.2% of the entire supplier network.{#p-1785436395203-9870}

In recent months, it has incorporated its own fleet of 40-ton off-road trucks intended for the initial soil movements.{#p-1785436412903-40867}

The resolution signed by Minister Luis Caputo also enables the company to access the tax, customs, and exchange benefits provided by the RIGI. Among them are the possibility of importing capital goods under a special franchise, tax incentives, regulatory stability, and the exchange benefits contemplated in the regime.{#p-1785435891613-17634}

During the technical analysis prior to approval, the Central Bank concluded that "there are no observations to make regarding the exchange aspects of the project", while the Treasury Attorney's Office considered that the dispute resolution mechanism proposed by the company fully complies with the legal framework of the RIGI.{#p-1785435891613-23357}

With the electrical infrastructure already authorized and the formal incorporation into the incentive regime, Vicuña begins a new stage of development. The integrated project of Josemaría and Filo del Sol not only aims to make Argentina one of the world's leading copper producers in the coming decades but also to mobilize investments, infrastructure, employment, and suppliers on an unprecedented scale for national mining.{#p-1785435891613-56826}

Resolution 1154/2026 approving Vicuña's entry into the RIGI {#p-1785436711839-42884}

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