On August 5, the company and the Government of San Juan signed an agreement that consolidates the commitments established under the Environmental Impact Assessment (EIA), stabilizes the provincial royalty framework, and includes an advance contribution of US$250 million for infrastructure projects.
By Panorama Minero
Vicuña and the Government of San Juan have signed a commitment agreement aimed at establishing a predictable framework for the development of the Vicuña Project. The initiative seeks to consolidate compliance with the obligations established under the Environmental Impact Assessment (EIA) while providing greater certainty regarding the economic aspects associated with the investment.
The agreement, which must still be approved by the Provincial Legislature to become law, represents the first stage of a series of agreements that both parties intend to develop as the project progresses.
Among its key provisions, the agreement establishes the stabilization of provincial royalties at 3% of revenues throughout the project's operating life. This framework will apply to both the current mining properties and any future properties incorporated into the Vicuña Project.
The parties also agreed to establish a trust fund to manage the financial contributions required under the EIA for the financing of previously identified infrastructure projects. As part of this framework, the company expects to make an advance contribution of US$250 million by the end of the fourth quarter of 2026, with the funds allocated to infrastructure projects within the province.
The agreement also reaffirms the 1.5% contribution on gross sales established under the EIA, with payments scheduled to begin in the project's sixth year of operation. According to the announcement, this mechanism will provide an additional source of funding for infrastructure and other provincial initiatives, complementing revenues generated through mining royalties.
Another key aspect of the agreement is the consolidation of all financial obligations arising from the Environmental Impact Assessment into a single contractual instrument, with the objective of simplifying implementation and providing greater predictability for both parties. In this regard, the Province also commits not to impose any new contributions of an equivalent nature related to the Vicuña Project, establishing the agreed framework as the definitive arrangement governing the obligations arising from the EIA.
| "Projects of this scale require clear rules and long-term predictability." Ron Hochstein, President and CEO of Vicuña Corp. |
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According to Ron Hochstein, President and CEO of Vicuña Corp., the agreement represents an important step toward creating conditions that provide greater certainty for both investment and the fulfillment of the commitments undertaken with the Province of San Juan.
From a development perspective, the agreement seeks to establish the institutional and financial foundations required to support the future construction and operation of the project, while strengthening provincial infrastructure planning and providing greater predictability for one of Argentina's most significant copper projects currently under development.
About the Vicuña Project
Vicuña Corp. is a 50/50 joint venture between BHP and Lundin Mining established to develop the Josemaría copper deposit, an advanced copper project located in San Juan Province, Argentina. The company is also advancing the Filo Del Sol copper, gold, and silver deposit, located in San Juan and the adjacent Atacama Region of Chile.
