Glencore gets RIGI nod for $4B Argentina copper project

Glencore (LSE: GLEN) has secured Argentine government approval for its $4 billion (C$5.7 billion) Agua Rica copper project under the country’s special investment incentive program, clearing a significant hurdle for the proposed MARA mine in Catamarca province.

The approval under Argentina’s Incentive Regime for Large Investments (RIGI) provides long-term tax, customs and foreign-exchange stability for qualifying projects. Glencore applied for the benefits in August 2025.

Known as Minera Agua Rica-Alumbrera (MARA), the project is designed to produce copper, gold, silver and molybdenum by developing the Agua Rica deposit and using existing facilities at the past-producing Alumbrera mine, about 35 km away.

News of the RIGI approval comes as Glencore advances the restart of Alumbrera. First production is now expected in the second half of 2027, about six months earlier than a previous target, Glencore said Friday in a statement.

“RIGI approval is a significant milestone for MARA and a clear sign of confidence in Argentina’s long-term investment framework, helping to underpin the country’s ambition to be one of the world’s leading copper producers,” Glencore Argentina CEO Martín Pérez de Solay said in the statement. “RIGI provides the fiscal and regulatory certainty needed to commit capital of this scale.”

Large resource

Agua Rica holds an estimated 1.2 billion measured and indicated tonnes grading 0.47% copper, 0.20 gram gold per tonne, 3.40 grams silver and 0.03% molybdenum, Glencore said Friday. Contained metal wasn’t disclosed.

The project is expected to produce about 200,000 tonnes of copper concentrate annually during its first 10 years of operation, Glencore says. Mine life is estimated at 23 years.

The development plan centres on an open-pit mine at Agua Rica, with ore transported to Alumbrera’s existing processing plant rather than requiring a new processing complex.

The approach is intended to cut construction costs, make better use of existing infrastructure and limit the project’s environmental footprint.

Full control

The two deposits were combined in 2020 to form MARA, bringing together Agua Rica and Alumbrera’s mine, processing plant and supporting infrastructure. The original partnership included Yamana Gold, Glencore and Newmont (TSX: NGT; NYSE: NEM).

Glencore subsequently gained full control of the project when it acquired Pan American Silver’s (TSX, NYSE: PAAS) 56.3% stake in 2023 for $475 million in cash. Pan American also received a copper net smelter return royalty of 0.75%.

Alumbrera, one of Argentina’s established copper-gold operations, stopped production in 2018 after its mineral reserves were depleted.

Restarting Alumbrera will help reduce the risks associated with bringing MARA into production, including training workers, preparing the processing plant and maintaining transport and other facilities that both operations will use, Glencore said. Close to 2,000 people now work at the operation.

Copper ambitions

The approval also advances Argentina’s efforts to unlock its vast copper potential.

Argentina rolled out RIGI in 2024 to attract investments of at least $200 million in strategic sectors such as mining, energy and infrastructure. Approved investments can benefit from a reduced corporate income tax rate of 25% from the standard 35%, duty-free imports of capital equipment and export-duty exemptions after three years.

Glencore has also applied for RIGI benefits for its El Pachón copper project in San Juan province, where it has outlined a potential first-phase investment of about $9.5 billion.

“Together with the restart of Alumbrera and our plans for El Pachón, Argentina represents a key pillar of Glencore’s copper growth, supporting our efforts to enable skilled employment, build local supply chains and deliver the copper the world requires,” Pérez de Solay said.

RIGI approval doesn’t represent a final construction decision. Glencore must continue advancing the project’s technical, environmental and development work before construction can proceed. MARA submitted its environmental impact report for the exploitation phase to Catamarca’s mining ministry last month.