BHP and Lundin are reportedly set to apply for Argentina’s new investment incentives scheme for their Vicuna copper project, according to a Reuters report.
The scheme, known as the Large Investment Incentive Regime (RIGI), began last October and aims to boost the mining sector by offering tax breaks and access to international dispute courts for investments over $200m through July 2026, with a possible one-year extension.
The mining community has welcomed the RIGI as a significant incentive for copper projects amidst Argentina’s challenging economic environment.
Jose Morea, the Vicuna project lead for BHP and Lundin, announced at the Argentina Copper 2025 conference that they were set to announce the project investment and apply for RIGI benefits in the near term.
However, there are concerns among other mining companies with projects still in early exploration stages.
Aldebaran Resources’ Altar project, for example, is not yet at a stage to make substantial investments to qualify for RIGI, with a preliminary economic assessment due in September.
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By GlobalDataJavier Roberto, head of Altar in Argentina, expressed concerns over the closing window for RIGI, even with a potential extension to June 2027.
To date, only two lithium projects have received RIGI benefits, while McEwen Mining’s Los Azules is the sole copper project to have applied, the report said.
The uncertainty surrounding Argentina’s glacier preservation law adds another layer of complexity for potential investments, with industry executives calling for clearer guidelines on permissible activities and conservation requirements.
In related news, BHP Group has reported a delay and potential cost overrun at its Jansen potash project in Canada, which could reach up to $1.7bn (A$2.61bn).
Despite this setback, BHP has reported “record” copper and iron ore production for fiscal year 2025, underscoring the importance of the Jansen project in diversifying the company’s portfolio after more than ten years of development.
