The Government of San Juan and Vicuña have signed an agreement under which the company will make an advance contribution of US$250 million to finance infrastructure projects across the province, several years before the mining project begins production.
By Panorama Minero
The agreement was announced by Governor Marcelo Orrego and represents an unprecedented framework for the province, as it provides for a financial contribution prior to the start of the project's production phase. The agreement will now be submitted to the San Juan Chamber of Deputies for legislative review and potential ratification.
The signing ceremony was attended by Vicuña President and CEO Ron Hochstein and the company's Country Director, José Morea.
According to the announcement, the US$250 million will be a fixed, non-refundable, and non-creditable contribution, to be used exclusively to finance transportation, water, and sanitation infrastructure. The initiative is intended to strengthen the conditions for the development of several productive sectors within the province, including agriculture, energy, and tourism.
The agreement also provides for the creation of a public infrastructure trust, which will be funded through a contribution equivalent to 1.5% of the project's gross revenue once operations commence. Under the agreed framework, these funds will be managed and audited by the provincial government.
From a fiscal standpoint, the agreement maintains the existing mining royalty regime, which establishes a 3% royalty on gross revenue from the formal commencement of the production stage.
Another key component of the agreement is the resolution of the administrative dispute that the company had maintained since 2022 regarding the Environmental Impact Assessment (EIA). According to both parties, resolving this issue provides greater predictability for the project's advancement.
Vicuña also committed to financing, with its own resources, infrastructure works directly related to the future operation, including the construction of the power transmission line and the Northern Corridor, the road that will connect Angualasto with the mining project.
According to official information, all funds contemplated under the agreement will be administered and executed by the provincial government in accordance with the mechanisms established under public procurement legislation.
The agreement is the result of a negotiation process that extended over more than eighteen months between the Government of San Juan and Vicuña, with meetings held during PDAC as well as in San Juan, Buenos Aires, Santiago, Vancouver, and New York.
