Argentine copper project PSJ clearing hurdles on the road to production

The San Jorge copper project in Argentina's Mendoza province, now known as PSJ Cobre Mendocino, could begin operations in 2027 or 2028 and become the first major red metal mine in the country since Alumbrera.  

Provincial governor Alfredo Cornejo made the announcement during a recent speech to investors at Argentina's embassy in the United Kingdom.  

At the meeting, Cornejo also stated that the renewed initiative is expected to be submitted to the provincial legislature in October or November, moving it closer to reaching the operations stage within the next two to three years.  

This timeline appears feasible, given that this week, Mendoza's environmental and mining authorities formally began evaluating the environmental impact assessment (EIA) prepared by GT Ingeniería and submitted by Minera San Jorge (MSJ).  

MSJ is now a joint venture between Swiss firm Zonda Metals and Argentine company Grupo Alberdi, which took control of the revamped copper project last year, significantly increasing its investment and scope.  

The project's current estimated capital cost is US$559mn for production of between 150,000t/y and 241,000t/y of copper concentrate from an open-pit deposit, according to PSJ documentation available for public consultation.  

The project involves processing the ore through crushing, grinding, flotation, thickening and filtering to obtain a dry concentrate containing 25% copper, according to the technical study.  

Previously, San Jorge was owned by Russian firm Aterra and Switzerland's Solway Investment Group, with planned investment of US$370mn and expected production of 40,000t/y of fine copper.  

However, now it is under the ownership of Zonda and Alberdi, the project has set more ambitious goals. It aims to capitalize on the benefits of Argentina's large investment incentive regime (RIGI), which offers tax benefits and foreign exchange stability for 30 years, among other advantages. 

Additionally, during the embassy meeting, Cornejo emphasized the recent progress in Mendoza's mining sector, noting that a new code of mining procedures is already expediting permit approvals and project assessments.  

Once the EIA for PSJ Cobre Mendocino is approved, the legislature would issue an environmental impact declaration, allowing project construction to begin. The mine is expected to have a 16-year lifespan.  

However, despite the economic potential of the mine – including an estimated peak of 3,900 jobs during construction and around 2,400 direct and indirect jobs during operation – PSJ has faced opposition.  

Last month, some environmental organizations and local residents protested against the project, citing concerns about potential impacts on land, air, surface water, aquifers and local flora and fauna.