Government Announcement on Chinchillas Brings Employment Stability
By Panorama Minero
Jujuy Governor Carlos Sadir announced the extension of the operational life of the Chinchillas project, one of the province's most important metal mining operations. The announcement was made during the opening session of the provincial legislature, where the governor presented SSR Mining with an environmental impact addendum that allows operations to continue for another two and a half to three years, following the successful completion of the technical evaluation process.
“Chinchillas was scheduled to close in June this year, which would have resulted in the loss of between 350 and 400 direct jobs, in addition to negatively affecting dozens of suppliers and associated services. With this approval, job continuity, predictability, and extended productive activity are now ensured,” emphasized José Gómez, the province's Secretary of Mining.
Located in the Rinconada department, near the town of Liviara and about 40 km from Mina Pirquitas, Chinchillas extracts silver, lead, and zinc at an altitude of over 4,000 meters above sea level. After the closure of Mina Pirquitas in 2016, its processing plant was adapted to handle output from Chinchillas, thereby ensuring strategic continuity in the region.
Gómez noted that this business decision also reflects a new international outlook: “Companies are beginning to view Argentina differently due to macroeconomic stabilization. In Jujuy, we have shown that there is a clear legal framework, provincial laws, regulations, and solid experience working with the private sector.”
At the same time, the official confirmed the approval of a pilot plant for direct lithium extraction, driven by the company Exar, which is already active in lithium carbonate production in the province. “The company submitted an Environmental Impact Report to test a new extraction method. This does not expand production capacity or the authorized amount of brine, but it does aim to improve processes and efficiency, requiring significant investment that will benefit local suppliers and workers,” he said.
Gómez also stated that, despite the drop in international lithium prices, activity are normalizing, which allows for more stable planning. “The challenge for companies is to reduce costs, and that's where new technologies come into play.”
He also recalled that in his address to the legislature, Governor Sadir highlighted the economic impact of mining in Jujuy. In this context, Secretary Gómez was clear in pointing out that the sector currently generates around 10,000 direct and indirect jobs, and its benefits extend to the education system as well. “Many schools are adapting their curricula to align with the productive profiles of each region. In 2023, the first 24 chemical technicians graduated from the Olaroz technical school—a clear sign that mining development is leaving lasting capabilities in the province.”
When asked about the Regime of Incentives for Large Investments (RIGI), Gómez explained that several companies are interested in joining, although the regime’s timeframes are tight compared to the natural timelines of mining projects. “Some companies are working to speed up their pre-feasibility processes, especially in the lithium sector, in order to qualify for the regime,” he added.
