Argentina holds vast reserves of copper, which supports various industries from air conditioners to electric vehicles, but they remain unexploited. The country is considered off-limits by mining companies due to bureaucratic red tape and economic turmoil, but this is about to change quickly. Backed by his victory in last month's midterm congressional elections, Argentine President Javier Milei is now trying to turn the Latin American country into a force in the booming global copper industry. After receiving praise from US President Donald Trump for shrinking the size of his government and abolishing some ministries, Milei is betting that mining will significantly diversify Argentina's agriculture-based economy, create thousands of new jobs, and generate much-needed dollar revenues. Milei often compares his country's copper potential with neighboring Chile, the world's largest producer of the metal. Last week, during a business forum in Miami, Milei said: 'Argentina doesn't export a single gram of copper, while Chile, which shares the same mountain range with us, exports quantities worth $20 billion annually.' Milei recently met with miners and other foreign investors in New York. Jokingly, he said: 'We're going to get more dollars than we need.' Since taking office two years ago, the Argentine president has rewritten investment rules to attract mining companies and capitalize on the growing demand for copper—a component required in electric vehicles and other equipment using sustainable technologies. Now, Milei needs to attract private investment to revive the economy after implementing major cuts to public spending by reducing subsidies and closing ministries. These austerity measures have brought down inflation, which had reached record levels, but have also led to increased unemployment with factories closing. In this context, a mining expert at consulting firm CRU Group, Nicolas Munoz, said that companies like Glencore, BHP Group, and First Quantum, among others, are working on developing eight projects that require new investments of about $26 billion. Four of the world's 12 largest new copper projects—mines being built from scratch—are in Argentina, according to Benchmark Minerals consulting. These projects are expected to produce over one million tons of copper annually by 2035, making Argentina one of the top five global producers and one of the fastest-growing new supply sources in the world. Production on the first of these projects is expected to begin in about three years, and the Argentine government hopes this will be the start of a long-awaited dream of Argentina one day competing with Chile's copper production, where the neighboring country produced more than five million tons last year. Diversifying Exports One of BHP Group's executives in Argentina, Carlos Ramirez, said: 'Argentina has some of the biggest untapped potential.' Alongside oil and gas, mining is one of the few sources of foreign investment that President Milei's government has managed to attract so far. His administration sees copper as a way to diversify Argentina's exports, which depend on soy and beef, and as a way to address the dollar shortage—a major economic challenge that has led to catastrophic collapses of the country's currency, the peso, over decades. The latest blow to the Argentine currency before the October midterm congressional elections threatened not only to derail Milei's market reforms but also to derail the country's copper investments. The stronger-than-expected performance of the ruling party in the recent elections has bolstered Argentine President Milei's political capital and revived investor hopes that Milei can build coalitions to push through changes in labor and tax laws. From The Wall Street Journal. A Big Change Former Argentine Mining Minister Carolina Sanchez said: 'The winds are now favorable for developing large mining investments, and if this succeeds, it will be a big change for the country.' Mining companies have long shelved their projects in Argentina, reluctant to invest in a country mired in economic turmoil and numerous trade restrictions that made it difficult to import equipment and send dollars abroad. Milei aims to diversify Argentina's agriculture-based economy and create thousands of new jobs through mining. Mining companies are developing 8 projects in Argentina requiring $26 billion in investments.
