A giant’s RIGI: 10 key takeaways from the Vicuña project, the world-class copper hub set to transform Argentine mining

The Vicuña Project is one of the most promising and large-scale mining developments in Argentina’s recent history, consolidating its position as a world-class copper hub in the Andes mountain range.

Born out of a 50/50 joint venture between BHP — the world’s largest mining company — and Lundin Mining, formed in January 2025 following the joint acquisition of Filo Corp. for about 4 billion Canadian dollars, the project integrates the Josemaría and Filo del Sol deposits within the Vicuña district. The area is located mainly in Argentina’s San Juan province, with extensions close to the border with Chile.

With resources that place it among the world’s 10 largest undeveloped copper deposits — more than 13 million metric tons of measured and indicated copper, 32 million ounces of gold and 659 million ounces of silver — Vicuña represents the largest greenfield copper discovery in the past 30 years. This week, Vicuña Corp. submitted its application to Argentina’s Large Investment Incentive Regime, known as RIGI, under the PEELP category (Strategic Long-Term Export Projects), committing to accelerated investments of at least $2 billion in the first two years after approval.

This step could turn the project into the largest foreign direct investment in mining in Argentina, with total projections exceeding $10 billion to $15 billion over several decades, boosting employment, exports and regional development amid rising global demand for copper driven by the energy transition.

10 key points of the Vicuña Project

1. Strategic joint venture: Vicuña Corp. is a 50/50 partnership between BHP and Lundin Mining, established in January 2025 following the joint acquisition of Filo Corp. and the integration of the Josemaría deposit, previously 100% owned by Lundin. The collaboration combines BHP’s global operational and financial strength with Lundin’s expertise in exploration and complex project development, forming an independent entity led by an experienced management team. This includes CEO Ron Hochstein, appointed in November 2025, who has more than 30 years in the industry and previously served as CEO of Lundin Gold. The goal is to maximize synergies to transform the Vicuña district into a multigenerational mining complex with long-term value creation potential.
2. Geographic location:
   The project is located in the Vicuña district in San Juan province, at elevations above 4,230 meters above sea level and just 10 kilometers from the Chilean border. This highly prospective area lies between the Maricunga metallogenic belt to the north and El Indio to the south, enabling a binational integrated approach, although all major investments and RIGI benefits are concentrated in Argentine territory. The proximity between Josemaría and Filo del Sol, about 10 to 11 kilometers, allows for shared infrastructure, optimizing costs and operational efficiency in a challenging but highly mineralized Andean environment.
3. Mineral resources: Focused on copper, gold and silver, the project hosts world-class resources confirmed in May 2025, effective April 2025. These include more than 13 million metric tons of measured and indicated copper, plus 25 million metric tons inferred, along with 32 million ounces of gold and 659 million ounces of silver. Filo del Sol stands out for its high-grade sulfide core, with 606 million metric tons at 1.14% copper equivalent, while Josemaría offers near-surface, high-grade mineralization of 196 million metric tons at 0.73% copper equivalent. These figures place Vicuña among the world’s 10 largest undeveloped copper resources and make it the biggest greenfield copper discovery in three decades, with further upside potential in areas such as Flamenco.
4. RIGI application: On Dec. 11, 2025, Vicuña submitted the first mining application to the RIGI under the PEELP category, which offers extended benefits such as up to 40 years of fiscal, foreign-exchange and customs stability, export exemptions and accelerated profit repatriation. The regime, promoted by President Javier Milei’s administration, is seen as key to competing with jurisdictions such as Chile and Peru in attracting large-scale, long-life mining investments. The move has been widely viewed as a milestone signaling confidence in Argentina’s economic reforms.
5. Initial investment commitment: Under the RIGI PEELP framework, the project committed to invest at least $2 billion on an accelerated basis in the first two years following approval. In 2025, more than $400 million has already been allocated to exploration, studies and pre-construction, with the joint venture’s total budget that year around $312 million, positioning Vicuña as one of Argentina’s largest foreign investors during the year.
6. Current and total estimated investment: By the end of 2025, the joint venture had injected more than $400 million, mainly into advancement and pre-construction activities at Josemaría. Total investment over the life of the project is projected to far exceed $10 billion and could reach as much as $15 billion across multiple phases, making it one of the largest foreign investments in the history of Argentine mining, with generational impacts on employment and economic development.
7. Development timeline: The release of an integrated technical report is expected in the first quarter of 2026, outlining the combined operating model and synergies between the deposits. Key regulatory approvals and the start of production are targeted for around 2030, with a phased development approach aimed at minimizing risk, capturing resource upside and ensuring an efficient transition from exploration to full-scale operations.
8. Processing capacity: The integrated design предусматриes a processing capacity of 175,000 metric tons of ore per day, with a mine life extended to 25 years, up from an initial 19 years due to higher-than-expected resources. The plan includes innovations in water management, energy efficiency and environmental sustainability, creating an integrated Andean cluster that maximizes copper, gold and silver recovery through a conventional open-pit operation.
9. Economic impact: As potentially the largest mining foreign direct investment in Argentina’s history, Vicuña could propel the country into the global top 10 copper producers. The project is expected to generate up to 10,000 to 12,000 direct jobs during construction, thousands more indirectly, significant royalties, large-scale exports and the development of a local supplier chain. It is expected to contribute to sustained growth in San Juan and nationwide for decades, strengthening the trade balance in a critical metal for electrification and renewable energy.
10. Political and economic context: The RIGI application underscores the appeal of the new regulatory framework promoted by the government, aimed at attracting large-scale investment through stability and competitiveness. Vicuña not only advances responsible and sustainable large-scale mining, with an emphasis on shared benefits and environmental stewardship, but also positions Argentina as an attractive copper hub in South America, akin to an “Australia of the Southern Hemisphere,” aligned with provincial and federal support for strategic long-term export projects.