With a US$559 Million Investment, San Jorge Puts Mendoza on the Global Copper Map

The environmental impact report (EIA) adjustment for **PSJ Cobre Mendocino**, formerly known as San Jorge, has been presented. The project entails a **US$559 million investment** and could become the **first mining project in Mendoza** to be incorporated into Argentina’s **Large Investment Incentive Program (RIGI).** _**Por Panorama Minero**_
PSJ Cobre Mendocino, previously San Jorge, has initiated the **environmental evaluation process** to obtain an **Environmental Impact Declaration (DIA)**, a requirement for the construction of this copper project located in **Uspallata, Las Heras, Mendoza.**
The **EIA adjustment** follows a restructuring of the company leading the project. **PSJ Cobre Mendocino** is now backed by **Zonda Metals GmbH (Switzerland)** and **Grupo Alberdi (Argentina)**. Grupo Alberdi recently entered the mining sector through the exploration of **Cerro Amarillo**, a copper project in **Malargüe, Mendoza.**
Without considering additional drilling that may extend its lifespan, the **production phase** is projected to last **16 years**, with the potential to expand up to **27 years**. Over its initial 16-year lifespan, PSJ is expected to **produce an average of 40,000 tons of fine copper per year**. ### **RIGI and Project Implementation** PSJ requires a total **investment of US$559 million**, including **US$461 million for construction** and **US$81 million for operations**. With these investment levels, it is the **first mining project in Mendoza eligible for the Large Investment Incentive Program (RIGI).**
Company representatives emphasized that **"copper is a key resource for the global energy transition"** and that **PSJ is positioned as a strategic project contributing to the responsible supply of this essential metal.**
The **Mendoza Chamber of Mining Entrepreneurs (CaMEM)** highlighted the province’s current vision of **integrating mining into its economic matrix**. They also stated that **PSJ could accelerate the development of a sustainable mining industry**, especially given the **recent advances in exploration policies**, including the establishment of the **Malargüe Western Mining District**.
If the project obtains **DIA approval**, **PSJ would be the first of eight copper projects** currently under discussion to move into production. As a **mid-sized project**, it would require a **construction period of 18 to 24 months**.
_"By mining standards, this is an extremely fast timeline. For Mendoza, it represents a valuable opportunity to start diversifying its economy and promoting sustainable economic developments that generate real jobs. It opens a highly promising window of opportunity for the province,"_ said **Guillermo Pensado**, President of **CaMEM**.
The company estimates that the project will generate approximately **3,900 jobs during construction** and **2,400 jobs during operations** (including **800 direct and 1,600 indirect jobs**). ### **Mining Systems and Production Levels** PSJ is located within **Estancia Yalguaraz**, covering **8 discovery claims** with a total area of **9,984.37 hectares**.
Given that the **mineralized body is close to the surface and contains disseminated ore**, **open-pit mining** is the most **technically and economically viable** extraction method. The **ore processing** will include **crushing, grinding, flotation, thickening, and filtering** to produce a **dry concentrate with 25% copper content.**
The **PSJ porphyry system** presents a **vertical mineralization gradient**, transitioning from **primary mineralization at depth** to an **upper enriched zone**. The deposit consists of **copper and gold oxides and sulfides**, with an average **copper grade of 0.47%** and **gold grade of 0.191 g/t**. The final product will be a **dry Cu-Au concentrate** with an **average Cu content of 25% and trace amounts of Au**.
The **processing circuit** will include **three-stage conventional crushing** followed by **flotation using standard reagents**.
**Laboratory-scale tests** on enriched and primary ore composites indicated **90% copper recovery** and **74% gold recovery** from the primary deposit.
The processing plant is designed with a **capacity of 10 Mt/a**, yielding an **average of 151,000 t/a of copper concentrate**, with a **maximum output of 241,000 t/a**. Only one product will be obtained from the treatment process: a **copper concentrate with minor gold content**.
Average production during the mine’s lifespan is estimated at **40,000 tons of fine Cu per year**, with peak production reaching: - **70,000 tons in year two**, - **59,000 tons in year three**, - **50,000 tons in year four**. It is estimated that PSJ will produce **an average of 18.9 t/h of concentrate**, reaching peak values of **36.6 t/h** at certain times, with a **copper content of approximately 25% and 9% moisture**. ### **Environmental Evaluation Process** The **submission of the EIA adjustment** for PSJ marks the **first step toward obtaining the Environmental Impact Declaration (DIA).** In Mendoza, this approval is granted by the **Directorate of Environmental Protection** and the **Directorate of Mining**.
The report will be **reviewed by specialized agencies**, which will then request **input from other relevant institutions** through sectoral reports.
If the **DIA is approved**, it must then be **ratified by the provincial legislature** through both chambers.
According to **Article 3 of Law 7.722**, **all environmental approvals (DIA) for exploration or production must be ratified by legislators**. The permit only becomes effective **once it is approved by a simple majority vote and published in Mendoza’s Official Bulletin**.