PSJ Cobre Mendocino has formally submitted its copper project for inclusion in Argentina’s Large Investment Incentive Regime (RIGI), with an estimated US$630 million investment aimed at the construction phase of the operation. The announcement was made by the company’s CEO, Fabián Gregorio, during the Prospectors & Developers Association of Canada (PDAC) convention currently taking place in Toronto.
By Panorama Minero
The application follows the project’s legislative approval in December under Mendoza’s Law 7.722, a requirement that formally enabled its development within the province’s regulatory framework. Following that approval, the company initiated feasibility studies and engineering updates as part of the preparation for a potential construction decision.
The PSJ Cobre Mendocino project is located in Uspallata, Las Heras Department, and contemplates the development of an open-pit copper mine with mineral processing through a flotation concentration plant to produce copper concentrate for shipment to international smelters.
The project design includes a processing plant with a capacity of approximately 10 million tonnes of ore per year, allowing for an estimated average annual production of around 40,000 tonnes of contained copper in concentrate.
The initial mine life is estimated at 16 years, with potential extension to approximately 27 years, depending on resource expansion and future exploration campaigns.
From a geological perspective, the deposit corresponds to a sulfide-associated copper mineralization system. Historical reserve estimates indicate approximately 48 million tonnes of ore grading around 0.61% copper, equivalent to roughly 295,000 tonnes of contained metal.
Metallurgical tests conducted on the primary deposit have shown copper recoveries close to 90%, supporting the flotation-based concentration process selected for the project.
Investment, construction and employment
The US$630 million investment submitted under the RIGI framework corresponds to the construction phase of the project and includes the development of the mine, the processing plant, associated infrastructure and tailings management systems.
The preliminary schedule estimates a construction period of 18 to 24 months, with a peak of approximately 3,900 jobs during the construction phase and about 2,400 direct and indirect positions during operations.
Ore processing will be carried out through flotation concentration, without the use of substances such as cyanide or sulfuric acid, in line with the environmental restrictions established under Mendoza’s current regulatory framework.
Evaluation under the national investment regime
The RIGI application now initiates a process of technical, economic and fiscal evaluation by national authorities, which will assess the project’s investment plan, financing structure and productive impact before determining whether it will be admitted into the regime.
If approved, the project would become Mendoza’s second initiative to enter the RIGI framework, following the El Quemado solar park. At the same time, it would be the province’s first metallic mining project under the regime and the fifth mining project nationwide to seek inclusion in the investment promotion scheme introduced by the Argentine government.
Should the regime be granted, PSJ Cobre Mendocino could emerge as one of the most advanced copper developments within Mendoza’s current regulatory framework, at a time when the province is exploring pathways to expand mining activity in the coming years.
