Lundin Mining (TSX:LUN) has reported its Vicuña project has received approval for Argentina’s enhanced investment incentive regime.
The Vicuña project, comprising the Josemaria and Filo del Sol deposits, becomes the first copper mining project granted Incentive Regime for Large Investments (RIGI) status under the Long-Term Strategic Export Projects (PEELP) designation in Argentina.
Vicuña is an independently managed joint operation between Lundin Mining, which holds a 50% interest, and BHP.
“The approval of Vicuña’s RIGI PEELP application is an important step forward in advancing one of the world’s most important copper districts,” CEO Jack Lundin says.
The RIGI PEELP regime offers enhanced benefits compared to the standard RIGI framework, including a 40-year benefit period (versus 30 years), accelerated access to revenue repatriation, and export duty exemptions.
Lundin Mining plans a staged development approach for the Vicuña district.
Stage one encompasses a sulphide mill and the Josemaria deposit, with an initial capital estimated at C$7.10 billion ($7.17 billion) according to a technical report released in February.
Lundin Mining expects to make a final investment decision for stage one before year-end. The company operates three mines in Brazil and Chile and is targeting a position among the top ten global copper producers.
Write to JC Villarba at Mining.com.au
Images: Lundin Mining
