Millie is betting on copper “to make Argentina great again”

Argentina President Javier Millie is scrambling to open copper potential in South America, and seeks to benefit from High global demand Amid pushing for electricity and renewable energy.

Millie, an autonomous Anku capitalist He won the shock elections In 2023, a series of a series revealed Difficult reform measures In an attempt to achieve stability in the traditional traditional economy and “”Make Argentina great again“

As part of this batch, the Milei administration hopes that the mining sector will play a major role, especially with regard to copper and Lithium.

One of the president’s leading liberal policies is to provide the great investment incentive system, or Rigi, a plan designed to provide generous advantages for taxes, trade and trade for older investors over 30 years.

So far, 20 projects worth $ 30 billion have sought to enter Rigi in Argentina, according to Global Risk Intelligence Verisk Maplecript, which are three quarters in mining. Copper alone estimates that it represents 16 billion dollars, more than all the uniform sectors combined.

The main players, including BHPand Glencore and Red River Among those who make bold bets on the potential of copper and lehium in Argentina, where senior executives travel from Glencore and Rio Tinto recently to meet Milei on a trip to Buenos Aires.

Ro Dhawan, CEO of the International Council of Mining and Minerals (ICMM), a commercial body representing nearly a third of the global industry, described Argentina as “the most exciting new copper story today”.

Dahwan said that there are other countries and judicial authorities that may be more geologically richer, but there are no countries at the intersection of a stable local political environment, and the provision of basic infrastructure and other complementary sufficient facilities and investments for the mining industry.

Among the most prominent copper projects in Argentina are the BHP and Lundin’s Vicuna joint project.

The Vicuna region is located along the borders of Chile Argna, a potential geologically. In fact, deposits in Giusimia and Velo del Sol mines estimated It contains 13 million metric tons of measured copper and 25 million tons of copper.

For Dhawan from ICMM, the possible importance of the BHP and Lundin’s Vicuna Copper project is unusual.

“It is of the importance of the same copper as Western Australia is to define raw – and I do not say that lightly. It is a bold comparison, but I really believe,” Duan said.

A spokesman for the BHP and Lundin’s Vicuna Copper project said last month that the two companies intend to apply for advantages under Rigi, Reuters mentioned.

Renewed mining concentration comes in Argentina, where the demand for global copper is expected to rise over the coming years, The show is greatly outperformed Amid the mutation of artificial intelligence and turning away from fossil fuels.

Analysts at Consultance Cru Group estimated The possible copper project pipeline in Argentina can represent an opportunity of approximately $ 47 billion for the economy until 2040.

This cumulative effect can be compared to a rescue loan record of $ 44 billion in Argentina receive From the International Monetary Fund.

A government spokesman did not immediately respond to a request for comment when calling him by CNBC.

He was asked if it was Argentina A long history of economic and smart courses It means that the dreams of copper in Argentina can collapse again. Dhawan from ICMM said: “Where is this danger not the question that I will ask?”

He added: “I only think people have adapted to new natural expectations of very large fluctuations and this has almost done for Argentina. I think two things have happened, and I think the stability of Argentina has risen and stability in the world.”

Duan said that it is not possible to predict the way Argentina will go, but it seems that investors are ready for various political and economic scenarios, and the sovereign risks have been priced.