Mining
Minas Argentinas (AISA Group through Eris LLC) Joins RIGI with a $1 Billion Investment
The Gualcamayo concession holder has become the first company in San Juan and the fourth nationwide to join RIGI.
POR REDACCIÓN
Minas Argentinas SA, part of AISA Group, formally submitted a $1 billion Investment Plan under the Large Investment Incentive Regime (RIGI). As the operator of the Gualcamayo Mine (AISA Group through Eris LLC), it is the first San Juan-based company to formally join this regime and has committed the largest amount under this system in the region so far.
The presentation took place Monday morning at the Government House. After meeting with Governor Marcelo Orrego and Mining Minister Juan Pablo Perea, company officials addressed the press. Ricardo Martínez, Executive Director of Minas Argentinas, stated: “We are pleased to announce that Gualcamayo Mine, which has been part of San Juan's economy since 2009, will not close as previously considered. Instead, it will continue for many years, adding renewable energy and a new product line: lime.”
Employment Opportunities
Martínez indicated that employment would peak at 3,000 workers during key project phases, primarily during the gas pipeline and photovoltaic plant construction, with 400 workers during the production phase. He noted that “northern San Juan will see significant economic activity with this project” and that local employment would exceed the recommended 20%.
The VPU (Unique Project Vehicle) presented includes various initiatives, the most notable being the DCP – Deep Carbonates Project. By 2025, Minas Argentinas will complete feasibility and engineering studies to define a production plan and begin constructing a new underground mine, milling system, and flotation plant with a 3,500 to 4,000 tons/day capacity. Deep Carbonates is expected to produce approximately 120,000 ounces of gold annually for a minimum of 17 years, with an estimated investment of USD 485 million.
Exploration investments of about USD 52 million are planned over the next five years. Minas Argentinas will focus on increasing Deep Carbonates' Resources and Reserves and developing new areas for future production. Drilling activities have resumed with support from Argentine, Chilean, and Australian specialists. This new exploration extends beyond gold, with initial work revealing strong geochemical indicators of molybdenum, gold, and copper porphyry potential in known sectors of the deposit.
Lime Production
The investment plan under RIGI also includes Industrial Lime Production. Gualcamayo, with its extensive high-purity limestone deposits (over 400 million tons already extracted and crushed), is strategically located to supply major consumers: copper projects in northern San Juan, Catamarca, and Salta, Chilean mining projects, and lithium plants in northern Argentina. To develop this project, a gas pipeline from San Juan to Jáchal and Gualcamayo is required, which would also extend natural gas supply to northern San Juan, creating an unprecedented socio-economic impact. The estimated investment is USD 75 million, set to begin once the pipeline’s executive project is complete.
In this first VPU, Minas Argentinas included the initial phase of a Photovoltaic Park in Gualcamayo. While the full project envisions 800 MW capacity, this initial RIGI commitment is for a 50 MW park to meet the mine's energy needs, with a USD 37 million investment beginning next year. A 500 kV connection to the National Interconnected System (SIN) is planned for future phases to allow energy sales across the country. This will form part of a subsequent VPU.
Minas Argentinas’ investment plan also involves expanding, reconditioning, and upgrading its current leaching system, allowing gold and silver production from previously depleted areas beginning in 2025. Environmental restoration of inactive areas is also included, with these activities requiring approximately USD 350 million and set to start in the first quarter of next year.
The National Government must now review the investment plan, request additional information if necessary, and issue an approval or rejection within 45 business days. Once approved by the Ministry of Economy, Minas Argentinas will be authorized to proceed under the conditions established by the newly sanctioned RIGI, to which the province of San Juan has recently adhered.
What is RIGI
One of the most highly anticipated components of Milei’s “Bases Law” is the Large Investment Incentive Regime (RIGI), offering major investors significant tax breaks, currency exchange benefits, and other incentives.
Advocates say it provides long-term legal guarantees needed to attract multi-million-dollar investments, which could alleviate the country’s international reserve crisis and economic difficulties. However, critics argue that the legislation prioritizes attracting international investments without sufficiently supporting Argentina's reserve growth or local industry development.
RIGI offers tax, customs, legal, and foreign exchange benefits for investments exceeding $200 million, available to Argentine and international companies that invest in foreign currency. Enrollment is open for two years from the regime’s start date.
Initially, the bill allowed investments in any sector, but the final version narrowed its scope to forestry, tourism, infrastructure, mining, technology, steel, energy, and oil and gas. This amendment was seen as a concession to Argentina's influential agribusiness sector.