Vicuña, a joint venture (JV) between BHP and Lundin Mining, is reportedly investing more than $400m (C$551.16m) in Argentina as it gears up to seek approvals for a multibillion-dollar mining project.

The initiative is expected to establish the region as a significant production hub for copper, reported Bloomberg.

The JV is currently engaged in pre-construction activities at the Josemaria deposit in a remote area of San Juan province, stated Jose Luis Morea, Vicuña's senior country manager for Argentina and Chile.

By the end of March next year, Vicuña plans to present a comprehensive report to its board, detailing the project's progress and outlining the processing method that will be employed.

Furthermore, the venture is in the process of preparing an application for tax, customs and currency exchange benefits offered through the country’s investment incentives programme, commonly referred to by its Spanish acronym, Rigi.

With its substantial budget, Vicuña is reported to have emerged as one of the country’s largest overseas investors this year, while it continues to assess the total development costs of the project, which also encompasses the Filo del Sol deposit.

Once viewed as a pariah due to state intervention, Argentina is gradually restoring the confidence of overseas companies, due to President Javier Milei's efforts to safeguard their investments.

Morea said: “Rigi is critical. It levels the playing field and allows for the project to be competitive in tax terms when compared to other jurisdictions in Latin America and across the world.”

To be effective in October for minimum investments of $2bn, Rigi will be in place until July 2026, with a potential extension of one year.

Morea refrained from providing specific estimates for capital expenditure and production, stating only that the venture is expected to rank among leading copper, gold and silver mines once it becomes operational in the 2030s.

"We now have an integrated project that combines two deposits and a single processing facility, creating synergies and unlocking additional value. Everything is on the table, and we are optimising all available options," he added.