Argentina and Chile are advancing regulatory talks to allow mining companies to share infrastructure and resources across their shared border in the Andes Mountains. Officials from both nations met Thursday to review projects under the Mining Integration and Complementation Treaty, a 1997 agreement that was revived in July after decades of limited activity.
The push to implement the treaty follows the election of Chilean President Jose Antonio Kast, who took office in March, and Argentine President Javier Milei. Both administrations have indicated a desire to attract private investment into their respective mining sectors. Chile is currently the world's largest copper producer, while Argentina has not produced the metal since its Alumbrera mine closed in 2018.
According to Chile's Mining Minister Daniel Mas, the cross-border framework could unlock more than $20.7 billion in investment and increase annual copper production by 540,000 metric tons. The arrangement would allow Argentine projects located near the border to utilize Chilean ports and existing infrastructure, which officials say could reduce costs and shorten transport routes. Several projects are under consideration, including Glencore's El Pachón and the Vicuña project, a joint venture between Lundin Mining and BHP.
The scale of the initiative involves at least $20 billion in potential capital expenditure. For the region, this translates to a projected increase of over half a million metric tons of copper production per year. While the specific impact on local household income was not reported, Joaquin Villarino of Chile's Mining Council noted that the development would create "enormous opportunities" for Chilean service providers and infrastructure operators who would be paid to support Argentine mining activity.
However, the specific day-to-day changes for these projects remain in the planning stages. While the Vicuña project has announced plans to use desalinated water from the Pacific, it has not confirmed reliance on Chilean infrastructure. Chile's Deputy Mining Minister Alvaro Gonzalez stated there is currently no fixed timeline for implementing the government measures. Representatives from the primary projects are scheduled to meet in Santiago on Friday to continue technical discussions. Future policy will depend on these reviews and the ability of both governments to finalize the shared legal framework.