San Juan approves $250 million mining agreement for infrastructure

The San Juan provincial legislature has approved a landmark agreement with the mining company Vicuña, which includes an extraordinary contribution of $250 million for provincial infrastructure. Under the terms, the company will also pay a 3% royalty on turnover and contribute 1.5% to a trust starting in the fifth year. The funds are intended for critical projects such as the improvement of Route 40 North, water works, and sanitation.

The decision has caused significant political shifts within the province. Four former mayors from the Justicialist Party (PJ) broke party discipline to vote in favor of the agreement, supporting Governor Marcelo Orrego’s administration. This move has highlighted internal divisions within the Peronist movement.

Economically, the province faces a long-term dilemma regarding whether to remain an exporter of raw mineral concentrates or to transition toward industrialization and local refining. Meanwhile, the local construction sector is preparing for the mining boom by promoting business associations, as local firms seek to gain the scale and technical capacity required to compete with larger entities in the mining supply chain.