The Cordillera Sanjuanina, a segment of the Andes mountain range situated in San Juan Province, is poised to accommodate thousands of workers in a newly constructed city. Established within the framework of the Vicuña mining initiative, this location is set to function as the central hub for the extensive project spearheaded by Lundin Mining and BHP. It will feature white modular units designed to accommodate residences, offices, service amenities, and dining establishments. Everything utilised to construct this temporary city will be produced in China and transported across the ocean, prepared for assembly in the Argentine mountains. The project initially envisions the installation of 2,500 beds in the Batidero housing complex. However, the rotational nature of mining work will considerably elevate the volume of individuals circulating through the camp. Under standard shift patterns of 14 days on and 14 days off, or 21 days on and seven days off, it is anticipated that between 3,500 and 5,000 workers will rotate through the city, with products manufactured in Asia and transported ready-made to Argentina. Company projections indicate that, upon reaching full development of the deposits, labour demand is expected to increase to 12,000 workers, necessitating an expansion of the complex to approximately 6,000 beds.
On its website, Beijing Chengdong, a member of the consortium granted the contract for the complex’s manufacturing, highlights the model intended for San Juan. The specifications outline prefabricated modular “container houses” constructed around steel-frame structures that can be assembled with bolts in various configurations of up to three storeys, facilitating swift installation on site. The company’s nearest regional reference was a mining camp established in Mexico last year, featuring 10,000 square metres of lodging, office spaces, and dining facilities. For that complex, the firm utilised reinforced modules anchored with cables to endure severe winds. The product is presented globally as a comprehensive solution, arriving on location with furnishings, appliances, and internal connections pre-installed. The expense associated with constructing this specific module in China is approximately US$500 per square metre, in addition to an estimated US$200 for international shipping costs. In contrast, the cost of prefabricated accommodation for a permanent mining camp in Argentina stands at approximately US$1,300 per square metre, which is nearly double the combined construction and logistics cost of US$700. The figures underscore the challenges that local manufacturers encounter when competing against Chinese suppliers, along with the weight of the so-called “Argentine cost” often referenced by businesses dealing with elevated taxes and operational expenses.
The decision to adjudicate the construction to a consortium headed by PowerChina, along with Beijing Chendong and Santa Fe firm RAFA S.A., has reignited debate over the hidden costs associated with Argentine labour. In modular construction, approximately 80 percent of the work is performed within the factory setting. Industry sources informed that constructing the camp locally would have created a minimum of 500 direct employment opportunities. Importing the modules from China significantly reduces that figure, primarily confined to logistics and on-site assembly work in San Juan. The Asian consortium’s bid amounted to US$52 million, surpassing the offer from Argentine firm Modular Homes, which was US$70 million. The US$18-million difference accounts for merely 0.1 percent of the US$18-billion investment anticipated for the Vicuña project. The PowerChina bid also benefits from customs-duty exemptions available under the RIGI incentive regime introduced by President Javier Milei’s government for major investments. The decision has led to significant concern among local business leaders, who project that a project of this magnitude – anticipated to be situated in the San Juan mountains for a minimum of 25 years – could have created at least 150 direct jobs along with further indirect employment across approximately 50 companies. “When a project of this scale is carried out entirely with imported materials, the country misses out on a strategic opportunity,” Juan Pablo Rudoni told.
Vicuña justified its choice by stating that the chosen proposal most effectively fulfilled its criteria for technical specifications, execution, safety, scheduling, and cost considerations. The company stated that it remains focused on prioritising local participation in areas where competitive capabilities are present, highlighting that over 95 percent of its current workforce is Argentine and approximately 73 percent of its direct employees hail from San Juan Province. The broader Vicuña initiative stands as one of the most significant foreign investments recorded in Argentina’s history. The project officially submitted its application to join the RIGI scheme in December 2025, positioning itself as a long-term strategic export initiative. Development is being carried out in phases, starting with the construction of the Josemaría deposit and subsequently expanding to incorporate the Filo del Sol copper project. The operation, classified as a Long-Term Strategic Export Project (PEELP in its Spanish acronym), is projected to yield an average of 400,000 tonnes of copper each year over its initial 25-year period. Nevertheless, the initial component in Argentina’s emerging mining value chain – providing the materials, technology, and labour essential for accommodating the workforce – will continue to be under Chinese control.