Miners urged to take advantage of Chile-Argentina treaty

Argentina's openness to seeking new capital and Chile's attempts to reduce the time it takes to obtain permits to speed up project development seem to be good signs for attracting more investment in mining and increasing bilateral cooperation.

Projects such as Josemaría, Lunahuasi, Filo del Sol, Los Helados, Los Azules and El Pachón have signed protocols under the treaty on mining complementarity and integration between Argentina and Chile that dates back to 1997 and was signed by former presidents Carlos Menem and Eduardo Frei.

"The treaty establishes a mechanism for cooperation and understanding so that the governments of Chile and Argentina can understand the operational needs of the projects and adapt their own regulations to allow the development of mining," Luis Lucero, Argentina's mining secretary, told BNamericas at the 7th bilateral mining meeting held on Thursday in Santiago.

The framework offers benefits to both parties, strengthens integration and also “allows mining to be the only economic sector that generates shared value, development and genuine work in the border area,” Rolando Dávila, secretary general of the Chilean-Argentine chamber, told the event.

For these reasons, initiatives such as El Altar of Aldebaran Resources are in the process of qualifying to join and Antofagasta Minerals with Los Pelambres is studying how to benefit from the initiative.

Most of the mining projects that are covered by the treaty are in Argentina’s San Juan province or Chile’s Atacama and Coquimbo regions.

It is estimated that several projects in Argentina’s Mendoza province, no more than 380km from Santiago, could soon be added.

One of those that could benefit is San Jorge, the most advanced in the area, along with others that are located in the emerging district of Malargüe, which is considered highly prospective in porphyry copper and copper-gold deposits, where Las Choicas, Cerro Amarillo and Mina Adriana are located, said Dávila.

At least seven other projects could seek protocols under the treaty, namely those recently acquired by Canada’s Kobrea Exploration, which signed an agreement this week to acquire the Sofi, El Perdido, Mantos de Cobre, Cuprum, Elena, Verónica and El Destino projects.

“All mining projects should evaluate the benefits provided by the treaty in order to optimize investment and maximize profitability,” Dávila said.

Regarding Josemaría, Alfredo Vitaller, VP of corporate affairs at Canadian company Lundin Mining, which is behind the copper project, told BNamericas that he is optimistic about the strengthening of the bilateral treaty and the approval of Argentina’s Rigi regime providing incentives for large investments. “We have the idea of starting production in 2029,” he said.