Argentina Copper Project Pipeline Update

Overview

The US$4.1bn Josemaría project is owned by Lundin Group. The silver-gold-copper project is expected to start operations in 2026. Lundin Mining acquired Josemaria Resources for an equity value of approximately C$625m ($485m) in December 2021. 

• The Josemaría mine will have a life expectancy of 19-years and will produce 131,000t/y copper, 224,000oz/y gold, and one million ounces of silver.
• Josemaría would generate 4,000 new jobs during construction and 1,000 while in production.
• Lundin spent US$400mn in 2023 to advance the project. Capex primarily include continuation of detail engineering, procurement of long-lead equipment, and preconstruction activities such as road upgrades and geotechnical work..
• The Josemaria copper-gold project is located approximately 10km from the Chilean border and 140km from Copiapo, Chile.
• Conventional open-pit mining method, involving drilling and blasting followed by loading and hauling by autonomous trucks, will be employed at the Josemaria copper-gold project.

Latest Updates – 

• Lundin Mining’s exploration programs is moving forward. More than 5,200 meters of exploratory drilling are expected in 2024.
• The company is focused on minimizing risks and maximizing the potential of the Josemaría project through optimization studies.
• Lundin will spend US$225mn in 2024 on hydrology and geotechnical work, installing mills, making road improvements, community relations and on obtaining permits before making a construction decision.
• Lundin is looking for a strategic partner such as Japanese trading houses or other large miners to help finance the project.

Overview

The US$3bn Mara project (formally Agua Rica) project was orginaly controlled by  Pan American Silver  (56.2%), Glencore (25%) and US miner Newmont (18.75%).  MARA is the combined project comprised of the Agua Rica site, Alumbrera site, as well as the Alumbrera plant and ancillary buildings and facilities, and will rely on processing ore from the Agua Rica mine at the Alumbrera plant.

• With proven and probable mineral reserves of 11.7 billion pounds of copper and 7.4 million ounces of gold contained in 1.105 billion tonnes of ore with an initial mine life of 28 years.
• The project is to produce some 241,000t/y of copper for 28 years, will use Alumbrera’s infrastructure which includes a processing plant, tailings facilities, pipelines and auxiliary buildings, among others. 
• MARA will be among the top 25 copper producers in the world when in production, and one of the lowest capital intensities of comparable projects globally.
• The project will be mined via a conventional high-tonnage truck and shovel open pit operation.

Latest Updates – 

• Glencore purchased Pan American Silver stake of 56.25% stake in the MARA project for $475 million in cash last year. It had previously purchased Newmonts shares increasing its stake to 43.75%. It is now the sole owner of the project.
• Glencore says it has extensive institutional knowledge of the asset and the jurisdiction, based on its successful history of running the Alumbrera operations prior to the integration with Agua Rica in 2020.
• Since taking ownership, Glencore has focused on meeting with local governments detailing its plans. It recently hired a Country Manager in December 2023.
• There have not been many developments over the last few months but the expectation is that there will be more newsthis year now that Glencore has firm control over the project.

Overview

The US$2.4bn advanced exploration project is located 6 km east of Argentina’s border with Chile, at 3,500 m elevation in the Andes Mountains. Los Azules is one of the world’s largest undeveloped high grade open pit copper projects that contains significant further growth potential. It is anticipated to be the world’s 25th largest copper producer and a lowest cost quartile producer.

• Initial capex requirement of $2.4 billion with payback occurring after 3.6 years.
• Production would reach 186,000t/y of copper in the first 13 years of a 36-year mine life at a cash cost of $1.14 per lb.
• The concentrator plant will have a throughput rate of 80,000t/d in the first phase, which will increase to 120,000t/d in a second phase to begin after the fifth year of production.
• The company finished last year constructing a new, low-altitude northern access road to provide year-round access to the site. The current exploration road is only passable about five months a year.

Latest Updates – 

• McEwen Copper, the owner of the project, completed 39,900m of drilling in early 2023 to evaluate geotechnical, hydrological, resource and exploration-related parameters and opportunities. The Los Azules drill hole database now totals some 126,000m.
• A new drilling program was started in October 2023 that has 18 drills operating with a goal of finishing the campaign with 62,000 meters drilled.
• The feasibility study is expected to be completed by early 2025. Currently, McEwen Copper is looking for financing and believes the project could be operational by 2029.

Overview

The US$4bn Taca Taca project is an open-pit copper, molybdenum and gold mining project owned by First Quantum. The project is located in Argentina, approximately 230km west of the provincial capital city of Salta and approximately 55km east of the Chilean border. First Quantum is expected to make an investment decison in 2024..

• Taca Taca is set to produce 275,000t/y copper, 106,880oz/y gold and 2,914t/y molybdenum over 32 years. 
• The mine construction could generate around 9000 new jobsat its peak.
• The company is in the process of obtaining operating permits, including for the use of power lines, water rights and road construction.
• The project will utilise the conventional open-pit method involving drill, blast, shovels and trucks operations. The near-surface material is expected to be mined through free-digging method, while the drill and blast methods will be employed as the mining depth increases.
• There are plans to use, where applicable, trolley assisted trucks for ore and waste haulage. Haulage cycle times can be significantly reduced for trucks receiving direct electric power to their wheel motors.

Latest Updates – 

• First Quantum is waiting on environmental approval. These were originally expected in 2023 but no news has been released to date. 
• First Quantum, as of last month, restated to media that they will start construction of the project once they have all the permits.

Overview

The US$1.27bn Filo Del Sol project is owned by Filo Mining. The project also sits on the border of Argentina’s San Juan province and Chile’s Atacama region. A pre-feasibility study of the project was completed in January 2019, but the company has continued exploration drilling increasing resources since the study was completed. 

• Average copper production is estimated at 67,000t/y over 14 years, for an investment of US$1.27bn.
• Open-pit mining methods involving drilling and blasting followed by hydraulic shovels and front-end loaders. 

Latest Updates – 

• In 2023, the company drilled over 38,000 meters.
• The 2024 campaign will be the largest ever at the project. Drilling will continue with nine diamond drill rigs on site throughout the year, and 40,000m planned.
• The company is focused in 2024 on growing the projects footprint as it steps out drilling.
• BHP invested USD$79 million for a 5% stake in 2022 and last year it invested another USD$30 million in a private placement.

Overview

The US$5.6bn El Pachon project belongs to Glencore. The greenfield copper project is located in Argentina’s San Juan province, just 5km from the border with Chile.

• The US$5.6bn for average production of 350,000t/y for 25 years.
• The company continues to carry out the environmental impact report and the feasibility study, which it expects to complete in 2023.
• Glencore has stated publicly that it is open to the possibility of bringing on a partner.

Latest Updates – 

• Glencore continues with the development of the project’s feasibility and environmental impact study. No timeline on these tasks have been released to the public.
• In 2023, the company started building a 2,700 square meter warehouse to store, analyze and study the project’s geological samples.
• The 2022/2023 summer campaign consisted of drilling 36,000 meters, maintenance of the access road to the site, engineering studies and other additional infrastructure works.