Argentina and Chile revive cross-border mining pact to lure investment

Argentina and Chile are pushing forward with a decades-old cross-border mining treaty, hoping to unlock billions in investment and position the region as a key supplier of copper for the global energy transition.

Officials from both countries are scheduled to meet on Thursday to review projects that could benefit from the Mining Integration and Complementation Treaty, a 1997 agreement that was revived in July after years of limited progress.

Chile's Mining Minister Daniel Mas has said the framework could help unlock more than $20.7 billion in investment and add 540,000 metric tons to annual copper production.

The renewed push comes under conservative Chilean President Jose Antonio Kast, who took office in March, and Argentina's libertarian President Javier Milei, both of whom are focused on attracting private investment.

For investors, a key draw is the potential for Argentine projects near the Andes to access Chilean ports and infrastructure linked to the world's largest copper-producing industry. That could reduce costs, shorten transport routes, and help bring new mines online.

Joaquin Villarino, head of Chile's Mining Council, said bi-national projects create opportunities for Chilean suppliers, infrastructure, and partnerships with the Argentine industry.

Chile's Deputy Mining Minister Alvaro Gonzalez said there is no fixed timeline for implementing the measures under consideration.

Representatives from three projects likely to benefit from the framework are scheduled to meet in Santiago on Friday at a mining integration seminar: McEwen Copper's Los Azules in Argentina, Glencore's El Pachón, and Vicuña, a cross-border project between Lundin Mining and BHP.

Vicuña has said it plans to use desalinated water from the Pacific Ocean, though it did not specify whether it would rely on Chilean infrastructure. Los Azules does not plan to use desalinated water or export through Chilean ports, but a spokesperson said the project is interested in the discussions given its proximity to the border.

Argentina, long reliant on agricultural exports, has not produced copper since the closure of the Alumbrera mine in 2018. Analysts say a pipeline of projects under development could place it among the world's top 10 copper producers by 2030, potentially making it part of a key supply hub alongside Chile.