Barrick Mining Corporation and China's Shandong Gold are seeking approval for a US$400 million investment at Argentina's Veladero gold mine, targeting an additional 1.6 million ounces (oz) of gold production over the mine's extended lifespan.
The proposal, submitted under President Javier Milei's Large Investment Incentive Scheme (RIGI), represents the latest vote of confidence in Argentina's mining sector transformation.
The Veladero mine produced 504,000oz of gold last year and forecasts output of 380,000-440,000oz for 2025.
Perched 4,000 metres above sea level in the Andes, the operation has been a cornerstone of Argentina's mining sector and employment for some 3,800 people - 91% of whom are hired from the local San Juan province
The proposed $400 million investment between 2025 and 2028 aims to fund the construction of new mining phases, adding 89.2 million tonnes of capacity for stockpiling and processing new ore.
Milei's mining makeover
Argentina's RIGI framework offers 25% corporate income tax instead of 35%, plans regulatory stability for 30 years and allows external arbitration over disputes.
So far, 11 companies have applied under RIGI, with six mining projects potentially hitting 10 by year-end for a ballpark value of $15 billion.
The transformative framework has attracted heavyweight players.
Rio Tinto's $2.5 billion Rincon lithium project became the first mining venture approved under RIGI, while BHP and Lundin Mining's Vicuna copper project will file applications in the "short term" for their multi-billion dollar red metal development.
Gold was Argentina's primary mining export last year, accounting for 68% of the sector's total shipments with a value of $3.14 billion.
The Veladero expansion could significantly boost these figures, with the operation projected to add $3.8 billion in export revenue over its lifespan through to 2033.
