Mining sectors in Argentina and Chile face structural shifts

The mining sectors in Argentina and Chile are navigating significant structural shifts and economic uncertainties. In Argentina, the Inter-American Development Bank (IDB) has warned that the anticipated mining boom must focus on creating regional economic opportunities beyond direct employment, citing the Vaca Muerta energy model as a cautionary tale regarding infrastructure needs. To support local growth, Economy Minister Luis Caputo is pushing for companies under the Large Investment Incentive Regime (RIGI) to exceed the 20% local procurement minimum to bolster domestic suppliers. Meanwhile, the Gualcamayo mine in San Juan is undergoing a major transformation; after facing closure, AISA Group has secured RIGI approval for a USD 665 million investment to develop the Carbonatos Profundos underground deposit.

In Chile, the industry faces a production crisis. While copper prices remain high, experts note a recession in project implementation and production capacity rather than market demand. Mining production fell significantly in the first half of the year, with major players like Codelco and Escondida contributing to the decline. Former Finance Minister Nicolás Grau has attributed Chile’s economic uncertainty to declining public investment and poor performance in the mining and fishing sectors. In the Coquimbo region, Minera Los Pelambres has joined a new regional strategy to improve governance and sustainability among small, medium, and large-scale mining operations.