Governor of Jujuy, Carlos Sadir, announced the extension of the lifespan 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 delivered to SSR Mining the environmental impact addendum that authorizes the continued operation for an additional two and a half to three years, following the project’s successful completion of a technical evaluation process.
By Panorama Minero
“Chinchillas was scheduled to close in June of this year, which would have resulted in the loss of between 350 and 400 direct jobs, in addition to negatively impacting dozens of suppliers and associated service providers. With this approval, we are ensuring job continuity, stability, and more productive activity,” said Jujuy’s Secretary of Mining, José Gómez.
Located in the Rinconada Department, near the town of Liviara and about 40 km from the Pirquitas Mine, Chinchillas produces silver, lead, and zinc at over 4,000 meters above sea level. After the closure of the Pirquitas Mine in 2016, its processing plant was adapted to handle Chinchillas’ output, thus ensuring strategic operational continuity in the region.
Gómez explained that this business decision also reflects a new international outlook: “Companies are beginning to view Argentina with renewed interest due to macroeconomic stabilization. In Jujuy, we demonstrate that we have 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 operational in lithium carbonate production. “The company submitted an Environmental Impact Report to test a new extraction method. While the plant’s capacity and the authorized amount of brine will not increase, the goal is to improve processes and yields, which requires a significant investment that will benefit local suppliers and workers,” he stated.
Gómez also noted that despite the drop in international lithium prices, activity is stabilizing, which allows for more reliable planning. “The challenge for companies is to improve cost efficiency, and this is where new technologies come into play.”
He also recalled that, during his speech to the Legislature, Governor Sadir highlighted the economic impact of mining in Jujuy. In this regard, Secretary Gómez emphasized that the sector currently generates around 10,000 direct and indirect jobs and that its impact extends to the education system. “Many schools are adapting their curricula to match the productive profiles of each region. In 2023, the first 24 chemical technicians graduated from the technical school in Olaroz—clear evidence that mining development is building long-term capabilities in the province.”
Regarding the Incentive Regime for Major Investments (RIGI), Gómez explained that there are companies interested in participating, although the regime’s deadlines are tight compared to the natural timelines of the mining industry. “Some companies are seeking to accelerate their prefeasibility processes, especially in the lithium sector, to qualify for the regime,” he said.
