Glencore Pursues Argentina Incentives for US$13.5 | Commodities
Commodities giant Glencore (LSE:GLEN,OTC Pink:GLCNF) has submitted purposes to put two of its flagship copper tasks in Argentina beneath a new investment regime.The Switzerland-based firm is looking for to incorporate the El Pachón deposit in San Juan and the Agua Rica deposit in Catamarca beneath Argentina’s lately launched Incentive Regime for Large Investments (RIGI).
Together, the 2 tasks characterize a deliberate capital investment of about US$13.5 billion over the following decade — US$9.5 billion for El Pachón and US$4 billion for Agua Rica.Both websites would benefit from a long-term financial framework with enhanced investor protections beneath the RIGI program, which the administration of President Javier Milei launched this yr to draw international investment.“President Milei and his administration must be credited for introducing the RIGI. This framework has changed the investment landscape in Argentina, providing a key catalyst to attract major foreign investment to the country,” Glencore CEO Gary Nagle mentioned within the company’s announcement on Monday (August 18). “The RIGI provides a key platform for the development of Argentina’s significant natural resource endowment,” added Martín Pérez de Solay, CEO of Glencore Argentina. “I am confident that the mining sector can be a major contributor to the Argentinian economy with the El Pachón and Agua Rica projects supporting the country’s ambition to become one of the world’s leading copper producers.”
El Pachón is a large-scale copper and molybdenum deposit with estimated assets of about 6 billion metric tons (MT) of ore averaging 0.43 % copper, 2.2 grams per MT silver and 130 grams per MT molybdenum. For its half, Agua Rica hosts roughly 1.2 billion MT of ore with average grades of 0.47 % copper, 0.2 grams per MT gold, 3.4 grams per MT silver and 0.03 % molybdenum. Ore from Agua Rica can be processed on the present Alumbrera amenities, positioned 35 kilometers away, by means of the MARA project framework.The scale of Glencore’s growth comes amid a broader strategic race amongst western producers to secure provides of essential minerals needed for clean power applied sciences, electric autos and protection purposes. Copper particularly is taken into account very important to international electrification, and analysts warn that rising demand may quickly outstrip provide.
US enforcement shift on Chinese metals
On Tuesday (August 19), the US Department of Homeland Security introduced that imports of Chinese metal, copper and lithium will probably be focused for “high-priority enforcement” beneath the Uyghur Forced Labor Prevention Act, a law limiting items linked to alleged human rights abuses in China’s Xinjiang area.
America has a ethical, financial, and national security responsibility to eradicate threats that endanger our nation’s prosperity, together with unfair trade practices that drawback the American people and stifle our financial growth. The Trump administration is taking motion.The use of… https://t.co/cuSlPkW1ab
— Secretary Kristi Noem (@Sec_Noem) August 19, 2025 “The use of slave labor is repulsive and we will hold Chinese companies accountable for abuses and eliminate threats its forced labor practices pose to our prosperity,” Homeland Security Secretary Kristi Noem mentioned in a post on X.US officers say the Xinjiang area hosts state-run internment camps the place Uyghurs and different minority teams are subject to compelled labor. Beijing has constantly denied the allegations, dismissing them as politically motivated.The announcement expands Washington’s marketing campaign to scrutinize items with ties to Xinjiang, which has already affected photo voltaic panels, cotton and different commodities. The new deal with copper and lithium marks a vital escalation given each metals’ central position in renewable power and battery manufacturing.
Global provide chains in flux
Together, Glencore’s Argentine tasks and Washington’s enforcement measures spotlight how essential minerals have gotten more and more entangled with geopolitics. China processes about 70 % of the world’s uncommon earths and controls a main share of international copper and lithium refining capability. Western governments try to diversify away from Chinese provide chains amid rising tensions.
Argentina, with its huge mineral reserves, has emerged as a key participant on this strategy. The nation is already a main producer of lithium and is positioning itself as a copper hub by means of tasks like Glencore’s growth.
Don’t overlook to observe us @INN_Resource for real-time news updates!Securities Disclosure: I, Giann Liguid, maintain no direct investment curiosity in any company talked about on this article.
The views and opinions expressed herein are the views and opinions of the creator and don’t essentially mirror these of Nasdaq, Inc.
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