Mendoza promotes Malargüe district in push toward mining development

Global mining giants are signaling interest in the Malargüe Western Mining District (MWMD) in Argentina's Mendoza province.

Switzerland's Glencore, Australia's BHP, Canada's Kobrea Exploration, private investors and Chilean state miner Codelco are considering 34 exploratory initiatives in the district, according to a provincial government press release.

Governor Alfredo Cornejo met some of the companies' executives at the London Metal Exchange Week, where he is seeking to attract mining investment.

At the event, Kobrea has promised Cornejo it will invest US$20mn in the early stages of seven copper projects in the MWMD, such as Sofi, El Perdido and Mantos de Cobre. Overall, Kobrea owns 14 properties in the district.

Mining companies are motivated by the legal certainty the province offers and the sustainable approach promoted by provincial mining firm Impulsa Mendoza.

Key will be the results of a public consultation Mendoza's mining and environmental authorities held in September to obtain approval of the environmental impact reports of the prospects. Details can be seen here.

Impulsa Mendoza presented initiatives like El Seguro, Campeones, Conejera and Fideo. The full list can be seen here.

During the consultation, participants complained about the lack of social license and environmental protection, but also highlighted the progress in mining practices, the potential for new jobs and the open process.

However, the MWMD “does not respond to a purely geological issue, but to a political need,” Edwards Gajardo, a mining journalist and owner of media outlet Mendoza Minera, told BNamericas.

He referred to law 7722, which limits the use of substances key to mining, such as cyanide, mercury and sulfuric acid, and emphasizes the protection of water sources.

Gajardo believes that the law hinders obtaining permits, which, added to an ideological approach that takes precedence over technical aspects, will make it difficult to obtain the green light for the district.

DEVELOPMENT

Mendoza had been opposed to mining for over a decade, which is why only a few projects are in advanced stages and have resource identification or approved environmental impact declarations. Among them are the Cerro Amarillo and San Jorge copper mines, the Don Sixto silver mine, Potasio Río Colorado and Hierro Indio.

However, Malargüe department still has potential, especially in the area close to the Chilean border. A study, available here, by Argentina's geological service reveals potential for gold, silver, copper, iron ore, uranium and vanadium.

The high demand for minerals for the global energy transition encourages companies like China's Hanaq and Canada's Consolidated Uranium to respond favorably to the district. Hanaq has requested 20 copper exploration permits, while Consolidated Uranium wants to develop its Huemul uranium-vanadium-copper project.

Private investors such as Guillermo Pensado, Raúl Concina and Gustavo Racioppi also want a piece of the pie.

In total, more than 100 projects could be developed in the Malargüe district, according to local media.