Companies to invest between US$250 and US$400 million in strategic electric infrastructure.
By Panorama Minero
YPF Luz and Central Puerto have signed a strategic agreement to develop an extra-high-voltage electric interconnection network in northwest Argentina. The project aims to meet the growing energy demands of the mining sector in the Puna region, ensuring an efficient and sustainable power supply to key mining areas such as the Pastos Grandes, Hombre Muerto, and Carachi Pampa salt flats, located in the provinces of Salta and Catamarca.
The joint investment is estimated at between US$250 and US$400 million, depending on the final scope of the development. In its initial phase, the plan involves the construction of a 140-kilometer power line, with the potential to extend it to 350 kilometers, making it critical infrastructure to unlock the region’s lithium and copper resources.
The NOA region is home to some of Argentina’s largest lithium and copper reserves, essential for the global energy transition. Martín Mandarano, CEO of YPF Luz, stated that the project will not only address the immediate energy needs of mining operations but also represents a historic opportunity for Argentina to lead the supply of these strategic minerals globally.
Fernando Bonnet, CEO of Central Puerto, emphasized that this initiative will allow mining companies to access reliable and competitive energy, strengthening both sustainability and operational efficiency. Additionally, the project is expected to positively impact local communities by integrating them into the electric grid and fostering economic development in the region.
Partnership with IFC: Renewable Energy for the Mining Sector
In parallel, Central Puerto is partnering with the International Finance Corporation (IFC), a member of the World Bank Group, to develop a transmission line focused on delivering renewable energy to the mining sector. This project, with an estimated investment of US$600 million and a capacity of up to 400 MW, reinforces the companies’ commitment to sustainability and the energy transition.
Alfonso García Mora, IFC Vice President for Europe, Latin America, and the Caribbean, highlighted that the Argentine private sector is uniquely positioned to lead this transformation, leveraging clean technologies and innovative solutions.
Opportunities and Challenges
The electric interconnection project in NOA will not only optimize the region’s energy supply but also position Argentina as a key player in sustainable mining and the global renewable energy market. However, the project’s success will depend on close collaboration between the public and private sectors, as well as adherence to environmental and social regulations.
This initiative marks a decisive step toward a sustainable industrial and energy development model, with the potential to position Argentina as a leader in green mining and the global energy transition.
