Argentina’s Mendoza province approves $559M copper mine

[Ben Graham]

Argentina’s Mendoza province has approved its first large-scale mining project in more than two decades after giving the greenlight to PSJ Cobre Mendocino, a joint venture between Switzerland’s Zonda Metals and Argentine company Alberdi Energy.

Earlier this week, the Senate of Mendoza granted its approval of Cobre Mendocino’s environmental impact statement, thereby ending a lengthy review process. For years, the proposed copper mine has been assessed by provincial technical bodies and independent consultants, and multidisciplinary teams that have conducted more than 13 years of environmental and social baseline studies in the Uspallata area.

The project had previously faced scrutiny from groups like Greenpeace over its potential environmental impacts regarding water use and wastes. However, the company has maintained that the project will use a conventional flotation process to produce copper concentrates without using any substances prohibited by law.

According to Cobre Mendocino, the environmental approval follows one of the most extensive participatory processes in the province’s recent history, including a 10-day consecutive public hearing, open information workshops, and more than 9,500 written submissions, with public support exceeding 60%.

Argentina, despite boasting an abundance of copper resources, has not produced the metal since the closure of the Alumbrera mine in 2018.

16-year mine

Located in Uspallata, in the department of Las Heras, the Cobre Mendocino mine is expected to produce 40,000 tonnes of copper concentrates annually over a 16-year life. It contemplates an initial capital investment of $559 million and a construction period of 18 to 24 months.

According to the joint venture, the project is expected to generate approximately 3,900 jobs in the construction phase and about 2,400 during operations, including both direct and indirect employment.

With legislative approval, Cobre Mendocino is now expected to begin the feasibility stage, which will include detailed engineering studies, cost and financing analysis, integrated construction–operation–closure planning, and economic and market assessments.

Once this stage is completed, the project will be in a position to move forward to the construction phase, the company said, adding that an update to the sustainability and environmental monitoring programs will be also be carried out.

“This institutional decision allows us to take another step in a process that has been long, transparent and highly participatory. We are now entering a technical feasibility stage, during which we will continue building the project together with the community, institutions and productive stakeholders,” CEO Fabián Gregorio said in a statement.