en.Wedoany.com Reported - Lundin Mining Corporación announced that its Vicuña project (including the Josemaría and Filo del Sol deposits) has received approval under Argentina's Large Investment Incentive Regime (RIGI) and has been designated as a Long-Term Strategic Export Project (PEELP). Vicuña becomes the first copper mine project in Argentina to receive the most favorable category treatment under RIGI PEELP.
Jack Lundin, Chairman and CEO of the company, stated that the approval of the application is a significant milestone for the project, marking a key step in developing one of the world's most important copper districts. Argentina's RIGI regime is designed to attract large-scale investments through long-term tax stability and transparent regulatory conditions. Under this framework, the project will benefit from greater investment certainty, helping to drive a final investment decision for Phase 1 by the end of this year.
Lundin also stated that the company and its partner BHP thank the governments of Argentina and San Juan for their support and look forward to continued cooperation to unlock the full potential of Vicuña. Ron Hoschetin, CEO of Vicuña, noted that receiving RIGI approval under the PEELP category is an important milestone for the project, as the framework provides greater predictability and clear rules for advancing large-scale capital investments.
The Vicuña district is being developed in phases. Phase 1 includes a sulfide processing plant and the Josemaria deposit; a technical report released on February 16, 2026, estimated initial investment at $7.1 million. The capital expenditure figures in the RIGI PEELP application cover portions of Phase 1 and Phase 2 (leachable oxides).
The RIGI regime offers a competitive investment framework, with key advantages including long-term regulatory and tax stability, reduced corporate and dividend tax rates, elimination of export duties, VAT incentives, and revenue repatriation. Compared to the standard RIGI framework, RIGI PEELP provides an extended preferential period of 40 years (versus 30 years), as well as accelerated revenue repatriation and export duty exemptions.
This approval is a key milestone in advancing a multi-decade, district-scale copper, gold, and silver development project in Argentina, expected to become one of the largest potential foreign investment projects in any sector in the country. According to the February 16, 2026 document, the project is expected to generate approximately $965 million per year in taxes and royalties for Argentina over the mine life, with a cumulative total estimated at $69 billion. The construction phase is expected to employ an average of approximately 5,500 direct employees and contractors, as well as 19,000 indirect jobs.
Through modern infrastructure and cross-border integrated development, the Vicuña project will also drive economic growth in Chile's Atacama region. Significant investments in Chilean infrastructure, including port facilities, a desalination plant, aqueducts, and a concentrate export plant, will establish long-term strategic assets. These investments are estimated to reach billions of dollars during the project development phase, creating jobs and supporting local businesses and suppliers.
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