Argentina bets on copper mining

Javier Milei’s government is increasingly presenting copper mining as a central part of Argentina’s growth plan as it moves from emergency stabilization to a broader push for investment, exports and foreign-currency inflows. In San Juan province, work is advancing at the Los Azules copper project, one of several large Andean developments that officials and investors say could help reshape the country’s export base. At the same time, the International Monetary Fund is pressing Argentina to deepen institutional reforms around the central bank and exchange-rate regime, while domestic opponents are warning that subsidy cuts could bring sharp increases in household energy bills. (mining.com) (imf.org) ### Why is copper getting so much attention now? May 6 put a number on the government’s ambition when mining minister Luis Lucero said Argentina could export $20.6 billion of copper and $12.1 billion of lithium within 10 years. Lucero said mining exports were $6 billion last year and that approved and submitted projects under the Large Investment Incentive Regime, known as RIGI, totaled $50.692 billion. San Juan province is one of the clearest examples. The Los Azules project, backed by McEwen Copper with investment from Stellantis and Rio Tinto, is expected to produce 148,000 tonnes of copper a year over two decades and is slated to begin production in 2030, according to AFP. (france24.com) ### What has Milei changed to attract miners? Since 2024, Milei’s government has promoted RIGI, which offers tax, customs and currency incentives for large investments in sectors including mining and energy. Reuters reported this month that the scheme is helping draw capital from companies including BHP and Rio Tinto as the government tries to make mining a pillar alongside agriculture and energy. (mining.com) March also brought a politically sensitive change. AFP reported that lawmakers amended Argentina’s glacier protection law to relax restrictions on mining in permafrost areas, a move that supporters link to project development and critics say could threaten water supplies. (france24.com) ### Where does the IMF fit into this story? April 15 marked the IMF staff-level agreement on the second review of Argentina’s Extended Fund Facility program. The Fund said the deal, still subject to Executive Board approval, would unlock about $1 billion and cited congressional approval of the 2026 budget, reforms to the monetary and foreign-exchange framework, and legislation aimed at unlocking mining investment. (mining.com) The IMF also said central bank foreign-exchange purchases had exceeded $5.5 billion so far this year and described the policy package as aimed at disinflation, external stability and growth. (france24.com) The upstream reporting cited by this story also says the Fund wants central bank reform, a more flexible peso and less reliance on monetary policy alone. ### Why is India showing up in an Argentina mining story? July 2025 offers part of the answer. Argentina’s agriculture secretariat said India is a key agro-industrial market and the country’s fourth-largest export destination, and the two sides resumed a joint agriculture working group after five years. (imf.org) Officials discussed market access for products including dairy, lentils, sweet citrus and bovine serum. Agustín Tejeda Rodríguez, listed by Argentina’s government as undersecretary for agricultural markets and international negotiations, has been part of that outward-facing trade agenda. (imf.org) The broader point for Milei’s government is that mining is being promoted alongside efforts to open more export channels in agriculture. ### What could slow the plan at home? May 23 brought a warning from Buenos Aires province governor Axel Kicillof, who criticized cuts to cold-zone energy subsidies and said some tariff increases could reach 100%, according to Infobae. That dispute adds political pressure as Milei tries to defend fiscal restraint while pushing market reforms. (argentina.gob.ar) Calingasta’s mining corridor also faces local resistance. AFP reported that residents and farmers in San Juan have raised concerns about runoff and water use even as many households depend directly or indirectly on mining jobs. (argentina.gob.ar) April 15 is the next formal marker in the financing track because the IMF agreement still requires Executive Board approval, and 2030 is the target year for Los Azules to start producing copper. In parallel, Argentina and India have already set out further technical steps on agricultural market access, according to the Argentine government’s July 2025 statement. (imf.org) (france24.com) (infobae.com)