Argentine business leaders project that the nation has the potential to draw in US$55 billion in mining investment over the coming decade. This influx presents a significant opportunity to establish a network of local suppliers, fostering job creation and stimulating industrial growth. The figures were presented in a report published on Wednesday by the Argentine Industrial Union, in collaboration with the Argentine Chamber of Mining Companies, the Inter-American Development Bank, and the European Union. One of the most significant attractions for investors is lithium. The report estimated that production will continue to grow, supported by ongoing projects, with an additional US$15 billion in investment anticipated. According to the Mining Secretariat, Argentina currently has eight lithium projects in production. Another four projects are currently under construction, five are in the feasibility stage, and 30 are undergoing advanced exploration, while the remaining 15 are in the initial exploration and prospecting phase. Lithium production in Argentina is primarily located in the provinces of Catamarca, Jujuy, and Salta, collectively known as the “lithium triangle.”
This area, which Argentina shares with Chile and Bolivia, contains the largest identified reserves of lithium globally. Beyond lithium, the most significant potential lies in copper, particularly from 2028 onwards, when multiple projects are set to commence simultaneously. Among the projects already in advanced stages, investment is anticipated to approach US$40 billion. Argentina currently has one copper project in production in Jujuy province, operated by MOM Mining, and another under construction in San Juan, managed by Lundin Mining. The report also attempted to estimate the future demand of Argentina’s mining sector for goods, services, and infrastructure in the coming years. It conducted a survey of the nation’s current industrial capacity and identified domestic suppliers in 73 out of the 91 categories examined. These encompass firms engaged in metalworking, construction, industrial chemicals, engineering, maintenance services, geosynthetics, valves, pumps, metal structures, and logistics. The findings arrive at a challenging juncture for both the industry and construction sectors. The industry is currently facing challenges due to subdued domestic demand coupled with intense competition from imported products.
Construction has experienced a setback due to the halt on public works initiated by Javier Milei’s administration, which is aligned with its overarching strategy to reduce public expenditure. “The infrastructure that mining companies are building, along with what the provinces and the federal government build, adds up to very significant investment,” Gustavo Weiss stated. He noted that “for the construction sector, it’s really important, and for the country too,” although he recognised that they do not yet possess an estimate of the potential benefits for construction firms. Luis Macario stated that “the challenge is making sure this development doesn’t stay limited to the natural resource itself, or to public works in the mountains, but instead turns into something that boosts Argentina’s industrial base.” He noted that Córdoba province, for example, has industries in metallurgy, auto parts, construction, logistics, and food processing that “can plug into the value chain of mining projects,” in addition to an oil, gas, and mining cluster.
Daniel Rosato cautioned that the process “isn’t that simple.” He is currently in the process of relocating from Buenos Aires to San Juan to establish his metalworking firm and position himself as a supplier to the mining companies. “It’s a process that requires a few years. You do not simply relocate to San Juan and expect demand to be readily available. It unfolds in phases: infrastructure must be developed, and the structures transmitting electricity to the mine need to be produced.” He cautioned: “You have to be ready, because the mining industry doesn’t wait.” Gabriel Leitter asserted that his province is the most suitably “equipped to supply the mining industry, because it has every kind of industry.” He also noted that Buenos Aires “has the experience of being the number-one province in non-metallic mining.” While he stated that the local industry “has no problem” matching imports on quality and output, he highlighted the tax burden as a significant obstacle, particularly in his sector. “I have to sell to a mining company with 51% in taxes built into the price of the product, and meanwhile someone else can import the same thing and pay nothing,” said Leitter.