Glencore has submitted applications for the inclusion of its El Pachón and Agua Rica projects in the Incentive Regime for Large Investments (RIGI) in Argentina.
The Anglo-Swiss multinational, which fully owns both projects, is expected to invest $US4 billion ($6.1 billion) to develop Agua Rica and $US9.5 billion ($14.6 billion) to develop El Pachón (Phase 1) over the next decade.
The El Pachón project is a large-scale copper and molybdenum deposit located in the province of San Juan, Argentina.
The project currently has estimated measured, indicated and inferred mineral resources of 6 billion tonnes of ore, with average grades of 0.43 per cent copper, 2.2 grams per tonne (g/t) silver and 130g/t molybdenum.
The Agua Rica project is a large-scale copper, gold, silver and molybdenum deposit located in the province of Catamarca, Argentina.
The project currently has estimated measured and indicated mineral resources of 1.2 billion tonnes of ore, with average grades of 0.47 per cent copper, 0.2g/t gold, 3.4g/t silver and 0.03 per cent molybdenum.
Agua Rica plans to use the Alumbrera processing facilities, located 35km away, for ore processing.
Glencore expects the two projects to create more than 10,000 direct jobs during the construction phase and more than 2500 direct jobs once operational.
Upon approval by the relevant authorities, the projects will have access to a long-term economic and investment framework as well as enhanced investor protections.
Glencore chief executive Gary Nagle said the Argentinian government deserved credit for introducing the RIGI.
“This framework has changed the investment landscape in Argentina, providing a key catalyst to attract major foreign investment to the country,” Nagle said.
“Today’s submission marks a significant step towards the development of El Pachón and Agua Rica. It also deepens our longstanding commitment to Argentina, a country to which we have been a proud partner across multiple commodities for over two decades.
“We look forward to working with the federal government and the respective administrations of San Juan and Catamarca to bring these projects to life, contributing to the provincial and national economies, and cementing Argentina’s position as one of the world’s leading mining jurisdictions.”
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