Glencore commits US$6.39bn to MARA in Argentina to bring copper back – BNamericas

News

Argentina has approved the admission of Glencore´s Agua Rica (MARA) copper project into the large investment incentive regime (RIGI), with an investment commitment of US$6.39 billion (bn). It is one of the country’s largest mining bets and seeks to revive commercial production of the strategic metal, which has been halted since the closure of Alumbrera.

MARA, in Catamarca province, will produce copper, gold, silver and molybdenum for 23 years starting in 2031. Construction would begin on November 1, 2027.

MARA’s capex is estimated at US$4bn, but the amount committed by Glencore and its subsidiary Minera Agua Rica is higher, reflecting the scale of the project. In the first two years the multinational company will invest about US$771 million (mn), a figure that exceeds the 40% minimum required by law for that period.

Of the total investment, US$3.31bn will be computable assets within the RIGI, according to resolution 1854/2026 published on October 27 in the Official Gazette.

Production-Export

The plan calls for extracting 780Mt of ore with average grades of 0.53% copper, 0.22 g/t gold, 3.51 g/t silver and 0.3% molybdenum from the Agua Rica mine, located at 3,300 m.a.s.l.

On average, MARA will produce 156.000t/a of copper, 108.000oz of gold, 1.8Moz of silver and 4.600t/a of molybdenum, and is expected to generate exports of around US$2.16bn per year. 

Total production over useful life:	3.45Mt of copper, 2.3Moz of gold, 41.1Moz of silver and 99,854t of molybdenum.
Total exports (23 years):	10.8Mt of copper, gold and silver concentrate and 239,455t of molybdenum concentrate

The advantage of Alumbrera

One of MARA’s keys is that it will leverage existing infrastructure to reduce capital intensity and execution risk. The Agua Rica deposit is 35km from the Alumbrera Industrial Complex, so ore will be transported by conveyor belt. From the plant, concentrate will travel by train to the port of Rosario.

Glencore plans to restart Alumbrera in the first half of 2028 to bring its processing plant back online and prepare the former pit as a tailings facility for MARA.

Construction will require up to 3,500 workers, while operations will generate 1,250 direct and 3,750 indirect jobs, according to a government statement issued this month.

The RIGI factor

Admission to the RIGI provides solid backing to sustain the level of capital MARA requires, as it offers fiscal, tax, customs and foreign exchange stability for 30 years, a horizon that could even cover a potential extension of the mine’s life.

The economy ministry authorized a list of goods that Minera Agua Rica may import under RIGI exemptions. It also instructed the central bank to guarantee the foreign exchange incentives and the customs and revenue agency (ARCA) to assign a unique tax identification code to apply the benefits.

Argentina’s mining secretariat will be responsible for overseeing Glencore’s compliance with its commitments. These include a supplier development plan, which pledges to allocate 54% of the total investment to local suppliers of goods and infrastructure works.

Race against the deadline

The deadline to apply for the RIGI in Argentina expires on July 8, 2027. Although a further extension is being debated, there are no concrete plans for now, so companies are expected to speed up their applications ahead 2027 presidential elections.

“With the RIGI, investors started looking toward Argentina, because it offers investment security. It will be essential to maintain mechanisms like this one, which facilitate the entry of private capital, because there are still many mineral resources in the country to supply growing demand,” Braian Gao, CEO of Latam Bridge Capital, told BNamericas.

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