Bolivia and Argentina, two of the countries with the greatest mining potential worldwide, have been leaving behind their internal concerns and implementing policies to attract investors. According to experts, Chile should not feel threatened; on the contrary, it should take advantage of the synergies that may emerge.
“As there is abundant mineral wealth on the Chilean side of the Andes, there must also be on the Argentine side,” said a trans-Andean congressman during the processing of a bill which, if approved—as anticipated by the Argentine government—could enable the definitive takeoff of mining investment in that country.
The political shift in that country, as well as in Bolivia, has brought new momentum to mining in both nations—development that has never fully taken off for various reasons, despite existing potential. This has led the global mining sector to closely watch what is happening in Latin America.
“The region holds a very significant share of the world’s reserves of copper and lithium, which are precisely the minerals at the center of the energy transition and electromobility,” says Jorge Cantallopts, executive director of the Center for Copper and Mining Studies (CESCO).
Today, while Peru and Chile base their exports on mining activity (67% of Peru’s exports and 59% of Chile’s depend on this industry), in Argentina it represents only 7%, in an economy primarily supported by agriculture. In fact, Argentina barely produces copper, and its mining exports are mainly gold.
However, the country recently updated its copper reserves, reaching 117.91 million tons of resources (compared to Chile’s 200 million tons), which—if current projects such as those in the Vicuña District, Taca Taca, and Los Azules are developed—could allow production of around 1.1 million tons by 2032. This is just over half of what Peru currently produces. In fact, significant investments have already been announced in both lithium and copper. A key factor has been the creation of the Incentive Regime for Large Investments (RIGI), similar to Chile’s former DL 600, aimed at providing certainty to investors through tax, customs, and foreign exchange benefits for a period of 30 years.
“South America is experiencing a moment with no precedent in terms of global strategic relevance. The region holds a very significant share of the world’s copper and lithium reserves. But what has changed most profoundly in recent years is not geology, but politics,” explains Cantallopts.
“Argentina is experiencing a historic turning point in its metallic mining sector, especially in copper. Starting from virtually zero production, it has a pipeline of greenfield copper projects unlike almost any other country, except Peru. This is partly the result of the lack of progress during previous boom cycles,” says Juan Carlos Guajardo, executive director of Plusmining. “At the same time, Argentina could become the most dynamic lithium growth platform in Latin America this decade,” he adds.
Bolivia and the highland resurgence
Another key case for experts is Bolivia. Following a political shift after nearly two decades of MAS governments, the new administration has focused on mining to expand its export base, which currently stands at just over US$10 billion annually.
Bolivia has deposits of tin, tungsten, zinc, lead, antimony, copper, bismuth, and critical minerals such as niobium, tantalum, and platinum group metals, both in western and eastern Bolivia, where there are also resources of iron, manganese, and rare earth elements.
Bolivian President Rodrigo Paz, with World Bank support, announced a public administration reform to boost mining.
Risks for Chile
Could Chile be affected by this regional opening? Experts suggest that rather than risks, the key consideration should be potential synergies.
“The main synergy between Chile and Argentina is logistics and infrastructure. For several Argentine projects near the Andes, exporting through Chilean ports makes strong economic sense,” says Guajardo.
Cantallopts, meanwhile, highlights Chile’s potential contribution in terms of human capital, technology, and supplier development. “Chile and Argentina have a mining treaty that is unique in the world and has enormous potential to translate into real production in the Andean region, where resources do not recognize political borders. In terms of human capital, technology, and specialized services, the Chilean industry has decades of accumulated experience that is highly valuable for markets that are just developing their mining institutions,” he concludes.
Source: La Tercera