Mining Business Opportunities in Argentina

A huge portfolio of mineral projects will be present at PDAC: Copper, lithium, gold and silver emerge as the most attractive minerals in Argentina

Alittle over a quarter of a century has been enough to place Argentina among the main exploration countries worldwide: legislative framework and high geological potential accompanied by staunchly upheld state policies, many new deposits were uncovered or, where already known, got better defined, which led to their becoming busy operating centres or attaining significantly advanced stages. With a contribution of US$3.857 billion, mining turned out Argentina's 5th export set in 2022 (4.4% of Foreign Trade). It is worth mentioning that 97% of these exports originate from just 5 provinces –San Juan, Santa Cruz, Catamar- ca, Jujuy and Salta. The mining industry accounts for over 75% of exports for the first four provinces.

Copper and lithium, gold and silver, and also potash symbolize Argentina's outstanding minerals supply. Investments for more than US$30 billion will be required to advance the projects to operation stages.

According to reports of the National Mining Secretary (Secretaría de Minería de la Nación) published in May 2022, the various mining projects in Argentina stood at the following stages of development:

 18 mines in production

 8 projects under construction (Including several on-going capacity expansions)

 6 projects at feasibility

 6 projects at pre-feasibility

 13 projects with preliminary economic assessment

 62 projects at advanced exploration

 > 250 projects at initial exploration

Key topics of the mining industry in Argentina include:

 1st Lithium Exploration Budget Worldwide

 Largest undeveloped copper worldclass portfolio

 2 of the world Top 30 Gold mines: Veladero and Cerro Negro

 Mineral Exports (2022): US$3.857 billion

 Exploration Budget (2021): US$226.8 million

 CAPEX Portfolio Advanced Projects (2021): > US$30 billion

In the accumulated of the 12 months of 2022, the national mining authority highlighted that metalliferous minerals added exports for US$3.020 billion, which implies a year-on-year increase of 4%, where gold contributed US$2.159 billion (56% of the total exported), silver US$802 million (21% of the total exported) and the rest of the metalliferous minerals US$59 million (2% of the total exported). This allowed the metal industry to represent 78% of total mining exports. In this way, and throughout 2022, gold showed an inter-annual growth of 8%, in the amounts exported, while silver fell 4% year on year.

Copper

The red metal, known to humans since many thousands of years ago, is used for countless applications and devices, including wind energy, tidal power, and electric vehicles; and, together with lithium, in solar panels, while at the same time they are strategic allies in assisting every resource for energy storage.

At May 2022, the National Mining Secretary has underscored the following distribution of advanced copper projects:

 Identified Resources: 65M tons

 19 projects: The 10 larger scale add up to 99% of the identified resources

Top 10 copper projects in Argentina:

 Josemaría (Preconstruction and Basic Engineering – Feasibility)

 Pachón (Feasibility)

 MARA (Agua Rica deposit + Alumbrera facilities) (Prefeasibility)

 Filo del Sol (Prefeasibility)

 San Jorge (Prefeasibility)

 Taca Taca (Prefeasibility)

 Los Azules (Advanced Exploration)

 Altar (Advanced Exploration)

 Chita Valley (Advanced Exploration)

 La Coipita (Exploration)

Productive Potential:

 Copper: 1,219 kt/a

 Gold: 702 koz/a

 Silver: 15 Moz/a

 Molybdenum: 18 kt/a

Lithium

Argentina has been quite adept at leveraging the momentum of lithium demand which is growing at a stunningly frenetic pace. Found in few countries, lithium abounds in Argentina –through its provinces its Catamarca, Jujuy and Salta- which, together with Bolivia and Chile make up the so called "Lithium golden triangle," one of the richest areas for lithium resource identification. For this reason, the Puna's salt flats exhibit competitive advantages for speedy development and entry into production of operating centers associated with this metal.

 Identified Resources: 100M tons

 27 projects: The 13 larger scale add up to almost 90% of the identified resources

Top 13 lithium projects in Argentina

 Salar de Olaroz (Production and several expansions)

 Fénix (Production and several expansions)

 Cauchari-Olaroz (Construction)

 Centenario – Ratones (Construction)

 Mariana (Construction)

 Sal de Vida (Construction)

 Tres Quebradas (3Q) (Construction)

 Pastos Grandes (Prefeasibility)

 Salar del Rincón (Prefeasibility)

 Candelas (Prefeasibility)

 Hombre Muerto West (Prefeasibility)

 Sal de Oro (Advanced Exploration)

 Kachi (Advanced Exploration)

Productive Potential:

(13 projects): 328,5000 t/a

Gold

Eight projects have been launched over the past decades, a fact that is testament to our country's potential regarding gold. In most of these operating centres, silver appears as a highly coveted by-product significantly helping reduce production costs.

A number of undertakings are placing their focus on the noticeable precious metals geological potential of El Deseado Mas- sif (Santa Cruz) and Valle del Cura (San Juan).

The National Mining Secretary offered the following details regarding gold mining undertakings:

 Identified Resources: 95 Moz

 43 projects: The 15 larger scale add up to 86% of the identified resources (There are several copper porphyry deposits with gold as by-product (MARA, Altar, Los Azules, Filo del Sol, Josemaría)

 Top 15 gold projects in Argentina

 Veladero (Production)

 Cerro Negro (Production)

 Lindero (Production)

 Gualcamayo (Production)

 Cerro Vanguardia (Production)

 Cerro Moro (Production)

 Don Nicolás (Production)

 Ajedrez (Production)

 Hualilan (Advaced Exploration)

 Taguas (Advaced Exploration)

 Casposo (Exploration)

 Jagüelito (Exploration)

 Pascua – Lama (Exploration)

 Suyai (Exploration)

 Calcatreu (Exploration)

Productive Potential :

 Gold: 437 koz/a

 Silver: 14.6 Moz/a

Silver

In relation to silver, fewer than half a dozen projects pivot around this metal as primary resource, and they lie at quite far apart areas. On the one hand, the Navidad project (Pan American Silver), located in the province of Chubut, and on the other, Diablillos (AbraSilver Resource), located in Salta, emerge as the big promises regarding silver metal. A change in state policies is needed for the Navidad project; only thus will the operation of one of the most attractive untapped silver projects in the world will be made possible.

 Identified Resources: 2,922 Moz

 40 projects: The 16 larger scale add up to 89% of the identified resources (There are several gold deposits with silver as by-product)

Top 7 pure silver projects in Argentina

 San José (Production)

 Chinchillas (Production)

 Providencia (Construction)

 Diablillos (Prefeasibility)

 Navidad (Exploration)

 Pingüino (Exploration)

 El Fierro (Exploration)

Productive Potential (4 projects):

 Silver: 34.4 Moz/a

 Gold: 40 koz/a

Conclusions

The mining industry was the 5th export cluster in 2022 accounting for 4.4% of total exports. The commissioning of new projects –particularly for copper mining—can not only sustain these values but has potential to more than triple current exports: 2/3 of those additional exports would originate from just 3 copper projects.

Argentina still holds great potential for new deposit discoveries that may allow continuing its high mineral production. Over 70% of the national territory remains insufficiently explored, especially if new deposit models are considered. These natural endowments, together with public policies aimed at fostering mining development, continue to make Argentina one of the most attractive mining investment areas in the world.