Argentina Approves Glencore's MARA Project Under RIGI with US$4 Billion Investment

en.Wedoany.com Reported - On October 2, the Argentine government approved Glencore's Agua Rica project for inclusion in the Large Investment Incentive Regime (RIGI). The Argentine government's estimated capital investment for the project is approximately US$4 billion, of which US$771 million is planned for investment in the first two years, with project financing sources including Glencore equity and debt.

Agua Rica is located in Catamarca Province, Argentina, and its orebody contains copper, gold, silver and molybdenum. The project's measured and indicated resources total approximately 1.2 billion tonnes, with average grades of 0.47% copper, 0.20 g/t gold, 3.40 g/t silver and 0.03% molybdenum. Glencore expects that in the first 10 years after the project comes into production, average annual copper production in copper concentrate can exceed 200,000 tonnes.

The project development plan integrates the Agua Rica deposit with the existing Alumbrera processing and supporting infrastructure to form the MARA project. The Agua Rica pit is approximately 35 kilometers from the Alumbrera processing facilities, and subsequent ore will be processed using the existing processing system. After completing the acquisition of the remaining 56.25% interest in MARA in 2023, Glencore currently holds a 100% interest in the project.

In September, MARA submitted an environmental impact report for the development phase to the mining authority of Catamarca Province. The document covers the environmental and social impacts and management measures for the project's development, operation and mine closure phases. The project still needs to complete the corresponding provincial environmental review and subsequent technical, engineering and investment decision-making procedures.

The Alumbrera mine, which is associated with the MARA development, is advancing its restart. Glencore's latest plan is to bring forward the first production from Alumbrera to the second half of 2027, earlier than the previous plan of the first half of 2028. The current Alumbrera restart work employs approximately 2,000 workers, most of whom are from Catamarca Province. The existing processing and downstream logistics infrastructure will continue to operate after Alumbrera resumes production and is planned to be shared with MARA once it enters the ore production phase.