Gualcamayo Gold Mine in Argentina to receive $665 Million Investment under Incentive Program
In a recent tour of the mine, executives revealed that Gualcamayo's gold mine in Argentina is planning to build a $665 million project. They hope it will qualify for a government incentive program.
The Large Investment Incentive Regime (RIGI) of Argentina, under the presidency Javier Milei, has only approved two lithium mining projects.
In an interview conducted earlier this month, Ricardo Martinez said that Gualcamayo had originally proposed a one-billion-dollar investment. However, it scaled down its application after government discussions about the best way to meet RIGI requirements.
Minas Argentinas (part of Aisa Group) bought the mine when it was closing in 2023. It now produces between 50,000 and 55,000 ounces per year through secondary recovery. This is a leaching process that uses ore which has already been extracted.
The plan calls for the construction of a brand new mine, an oxidation pressure plant, and a solar park with a capacity of 50 megawatts to power the project.
RIGI is designed to launch investments through July 2026 with a potential one-year extension. The RIGI offers long-term tax breaks as well as access to international dispute tribunals for investments above $200 million.
Martinez added that it was important to have the RIGI in place for legal protection. The main challenge, he said, is that current mining regulations remain in force.
The new mine will be called Carbonatos Profundos and will be under the existing one. It will produce gold using sulfides instead of oxides. Executives said that the company plans to export $400 million worth of gold each year by 2029, with a lifespan of 17 years.
As mines age and their ore quality decreases, gold production in Argentina has decreased. Argentine's largest mining export is still gold, which accounts for 68%. Martinez stated that Gualcamayo plans to begin construction of the new processing plant and mine in 2027. The mine is estimated to have 3 million ounces economically viable gold resources, which are part of a total of 5 million certified resources located in just 3% of 40,000 hectares. The remaining 40,000-hectares have yet to be explored. Martinez stated that the high demand for gold and its prices around the world have given the company optimism.
He said, "Today the gold that you produce has been taken from your hands." Reporting by Lucila Sgal; Editing and proofreading by Mark Porter
(source: Reuters)
