LatinNews Daily - 31 July 2024

*Australian mining company BHP has announced its return to Argentina with an investment in two major copper projects in San Juan province, following an agreement with Canadian firm Lundin Mining. BHP and Lundin have agreed to jointly acquire 100% of Canadian mining firm Filo Corp, which owns the Filo del Sol copper project which straddles Argentina and Chile. As part of the deal, the companies have also agreed to form a joint venture, in which both will hold a 50% stake, to develop Filo del Sol and Lundin’s Josemaria copper project. This decision comes after Argentina’s congress approved President Javier Milei's incentive regime for big investments (Rigi) which offers tax, customs, and exchange incentives for 30 years for projects exceeding US$200m in sectors including mining. BHP will pay Lundin Mining US$690m to acquire 50% of the Josemaria project, with the total cash payment for the transaction expected to be approximately US$2.1bn. This marks BHP's return to Argentina, where it last operated in 2003.