Minas Argentinas presented an investment plan of USD 1.000 M to the RIGI

Minas Argentinas SA, a member of AISA Group, formally presented an Investment Plan of USD 1.000 million to be executed under the Incentive Regime for Large Investments (RIGI). The operator of the Gualcamayo Mine became the first company based in San Juan to formally adhere to this regime and is, so far, the largest amount of money committed under this system in the entire region.

The VPU (Unique Project Vehicle) presented includes various initiatives and investments. The most relevant is undoubtedly related to the DCP - Deep Carbonates Project. Minas Argentinas will complete the feasibility study and engineering by 2025 to define a production plan and the subsequent start of construction of the new underground mine, a milling system, and a flotation plant with a capacity of between 3,500 and 4,000 tons/day, among others. Deep Carbonates will produce about 120 thousand ounces of gold annually for a period of no less than 17 years. The estimated investment is USD 485 M, anticipating the creation of about 1000 jobs during construction and 400 for the operational stage.

Additionally, investments in Exploration are planned amounting to USD 52 M over the next 5 years. Minas Argentinas will operate under two premises: to increase the amount of Resources and Reserves of Deep Carbonates and to develop new sectors that can be put into production in the future. Drilling work has already resumed, and work has also begun with the advice of Argentine, Chilean, and Australian specialists. The new exploration will not only be focused on gold. During these first months of work, the company has already found strong geochemical indications of the potential of one or more molybdenum, gold, and copper porphyries in the more well-known sectors of the deposit.

The investment plan presented in the RIGI also includes the Production of Industrial Lime. Gualcamayo is a large deposit of high-purity limestone and has more than 400 million tons already extracted and crushed. In addition to first-quality carbonatic resources in several potential quarries. The geographical location of the deposit generates a logistical advantage to supply lime to those who will be large consumers of this product: the copper projects in northern San Juan, Catamarca, and Salta, mining projects in northern Chile, and lithium plants in northern Argentina. To develop this project, it will be necessary to construct a gas pipeline from San Juan to Jáchal and to Gualcamayo, which will also allow for the extension of natural gas supply to the northern region of the province, generating an unprecedented social and economic impact. The estimated investment is USD 75 million, to be initiated once the executive project of the gas pipeline is completed.

In this first VPU presented by Minas Argentinas, the first stage of the Photovoltaic Park to be built in Gualcamayo was included. Although the integral project contemplates a production of 800 MW, in this first RIGI, the construction of a 50 MW park for the exclusive electrical needs of the mine was committed with an investment of USD 37 million to begin next year. Later, progress must be made in the construction of a 500 kV link that connects with the National Interconnected System (SIN) to sell energy to any point in the country. That will be the subject of a second VPU.

The investment plan of Minas Argentinas is completed with expansion, refurbishment, and repowering works of its current leaching system, which will allow, starting in 2025, the production of gold and silver in the coming years, from sectors that were already considered depleted. It also includes a series of environmental restoration works in unproductive sectors. In all these concepts, the works will require investments of around USD 350 million and will begin in the first quarter of next year.

“We are very happy with the progress we are making in Gualcamayo. This was a mine in the process of closure a year ago, and today it is witnessing million-dollar investments that will give us, at least, 3 more decades of work. When the right conditions are created, the correct teams are formed, and above all, there is the drive and commitment of a family like that of Juan José Retamero, determined to invest to generate more development, the only path is sustained growth, and that is what we bet on at Minas Argentinas,” said Ricardo Martínez, Executive Director of Minas Argentinas SA.

He also emphasized the key work of the internal teams, whose experience and capacity have been crucial to advance this ambitious investment plan. Additionally, he highlighted the importance of collaboration with a consulting firm of recognized international prestige, belonging to the group known as the “Big Four,” which not only provided strategic advice but also precisely coordinated the required documentation management, ensuring compliance with the highest international standards.

Minas Argentinas SA and AISA Group are already analyzing the submission of a second VPU for the coming months, once this first RIGI is approved. It could commit another 1.000 million dollars in investments related to photovoltaic generation and construction and/or improvements of the high-tension transmission system.

The formal process for the VPU submission was completed a few hours ago. Now, the National Government must evaluate the investment plan, request additional data, if deemed appropriate, and issue a resolution for approval or rejection within a period of 45 working days. Only with the green light from the Ministry of Economy will Minas Argentinas be authorized to start work under the conditions established in the recently sanctioned RIGI, which the province of San Juan adhered to in a timely manner.

More about Aisa Group

Aisa Group (www.aisagroup.ca) is a group of family-owned companies focused on sustainable, balanced, and lasting development, driven by a long-term vision that prioritizes responsible investment, ongoing reinvestment of generated resources to ensure sustainable growth, and a positive impact on the communities in which it operates. With a presence in Europe, Asia, the United States, Canada, and Argentina, the companies cover strategic sectors such as energy, mining, fishing, meat industry, winemaking, and real estate.