Argentina and the United States recently formalized a memorandum of understanding to boost mining investments. Signed on August 22, 2024, by Foreign Minister Diana Mondino and José W. Fernández, the U.S. Under Secretary of State for Economic Growth, Energy, and Environment, this agreement aims to enhance cooperation between the two nations in the mining sector.
Here are six key U.S.-backed mining projects in Argentina, spread across provinces like Jujuy, Salta, Catamarca, and Santa Cruz, focusing on lithium, gold, silver, lead, and zinc extraction:
1. Puna Operation Project (Silver, Lead, and Zinc) – Jujuy Province
The Puna project, owned by U.S. firm SSR Mining, comprises the Chinchillas mine and the Pirquitas property in Jujuy. It produces silver-lead and zinc concentrates, with proven reserves of 20.7 million ounces of silver as of December 2023. Commercial production started in 2018, and mining at Chinchillas is expected to continue until 2026.
2. Salar de Arizaro Project (Lithium) – Salta Province
Located in the Andes at 3,760 meters above sea level, this lithium project involves a joint venture between Netherlands-based Pluspetrol Resources (40%), U.S. subsidiary Argentum Investments LLC (26%), and Spain’s Prado Largo SA. The deposit holds lithium-rich brine, offering significant potential for lithium extraction.
3. El Quevar Project (Silver) – Salta Province
This silver project, located at 4,800 meters in the Andes, is a joint venture between Barrick Gold (70%) and Golden Minerals Company (30%). The project, still in its assessment phase, is expected to produce 4.8 million ounces of silver annually over six years, using underground mining methods.
4. Phoenix Project (Lithium) – Catamarca Province
The Phoenix project, in the Salar del Hombre Muerto, is operated by Arcadium Lithium, formed after a merger between Livent and Allkem. The current production capacity is 27,000 tons of lithium carbonate equivalent, with plans to reach 40,000 tons by the end of 2024.
5. Kachi Project (Lithium) – Catamarca Province
Located in the Salar de Carachi Pampa, the Kachi project is owned by Lake Resources (75%) and Lilac Solutions (25%). The project aims to produce 50,000 tons of lithium carbonate annually over 25 years, with a projected investment of $1.38 billion.
6. Cerro Negro Project (Gold) – Santa Cruz Province
Owned by Newmont Goldcorp, the Cerro Negro project is a major gold producer with an annual extraction rate of 334,000 ounces. It includes several high-grade underground mines and is one of the key gold mining sites in Argentina.
These U.S.-backed projects play a crucial role in Argentina’s mining industry, driving economic growth and job creation across the country.