Mendoza sent a direct signal to foreign and local investors closely watching Argentine mining on Tuesday afternoon by legally protecting the San Jorge Copper Project (formally known as PSJ Cobre Mendocino).
The provincial Senate approved the project with 29 votes in favor, 6 against, and 1 abstention. The decision establishes a legal framework that protects the project against future regulatory changes or shifts in management.
The parliament also approved the creation of the Western Mining District II, the Mining Royalties Law, and the Environmental Compensation Fund.
The message is clear: the province wants to provide long-term predictability and transform San Jorge into a new economic engine within its productive matrix.
The project had received the explicit backing of President Javier Milei.
“It is the closest we have come in the last 20 years to definitively launching mining in Mendoza,” he said on social media. He added that the new Argentina will grow thanks to what he called three pillars: agriculture, energy, and mining.
“With the same level of competitiveness [Mendoza has show in the wine business], it now seeks to position itself as a mining producer. We fully support the province and all those who want a freer and more prosperous Argentina, something we promoted more than a year ago with the signing of the May Pact,” he concluded.
A new stage in Mendoza mining The move marks an institutional milestone for Mendoza. This is the first mining project fully approved under Law 7.722, a regulatory framework known for its rigor and for having stopped large-scale mining initiatives in the past.
The legislative approval gives the project located in Estancia Yalguaraz, Uspallata, a green light to move forward with its feasibility study before entering the construction phase. The mine will be aimed at producing copper concentrate.
The project is developed by Minera San Jorge S.A., a joint venture between Swiss company Zonda Metals GmbH and Argentine company Alberdi Energy.
Total investment is estimated at US$559 million, divided into US$461 million for construction and US$81 million for initial operation.
Production, lifespan, and projections PSJ Cobre Mendocino aims to position itself among the country’s strategic copper projects. According to the company, the target is to produce 40,000 tons of fine copper per year in the first stage.
In the second year, they have the potential to reach 70,000 tons. The mines initial lifespan is expected to be 16 years, extendable to 27.
This production profile is especially attractive in a global context of strong demand for copper for electrical infrastructure, sustainable mobility, and energy transition technologies.
Furthermore, San Jorge is the first mining project in Mendoza to apply for the Large Investment Incentive Regime (RIGI), the national law aimed at stimulating investments of more than US$200 million through a strengthened fiscal and exchange rate stability scheme.
Environmental impact Weeks ago, the province approved the Environmental Impact Assessment for the project, following a participatory assessment processes that included technical workshops, a 10-day public hearing, and a final 6,000-page report made by the Mining Environmental Authority.
In total, nearly 100 professionals, 16 organizations, the Mendoza Environmental Commission (CEIAM), and the reinstated Provincial Environmental Council, which had not been convened for over a decade, participated in the process.
Mendoza Governor Alfredo Cornejo stated that the approval of the Environmental Impact Assessment marks a historic step for Mendoza and opens the door to copper production, a key mineral for the energy transition and moving away from fossil fuels.
The governor called on the people of Mendoza to seize this opportunity, assuring them that the province can become an internationally recognized copper producer, with the same responsibility it applies to its wine production. He added that progress demands consistency, responsibility, and not giving in to fear.
Environmentalists who oppose the project, however, warn that it could lead to water shortage in a province that already suffers from drought.
There is fear mining will require heavy reliance on groundwater pumping, which could deplete aquifers and undermine water supply for agriculture and communities.
Another concern is that the project lies near river basins that supply drinking water and irrigation, and these could be contaminated by mining waste.
With information from Ambito