How Argentina Can Leverage Copper’s Potential in the Energy Transition
On December 17, 2024, during the 23rd ProPymes Seminar, Oscar Scarpari, CEO of Techint Engineering and Construction (Techint E&C), underscored the transformative potential of copper for Argentina’s economy and industrial growth. Comparing the development of copper mines with the successful Fortín de Piedra shale gas project, Scarpari highlighted the scale of investment, infrastructure, and policy changes required to make Argentina a major player in the global copper market.
Copper has emerged as a critical mineral for the energy transition due to its pivotal role in enabling electromobility and renewable energy systems. Scarpari emphasised that copper's versatility in energy distribution and network stabilisation is essential for the growing demand in electric vehicles, renewable energy projects, and digital technologies like artificial intelligence and blockchain.
Argentina is home to several world-class copper deposits, including Taca-Taca, MARA, El Pachón, Josemaría, and Los Azules. Together, these projects could contribute 1 million tonnes of copper annually, accounting for 10% of the additional global supply needed between 2025 and 2035. To realise this potential, over $20 billion in capital expenditure (CapEx) will be required.
Scarpari drew a striking comparison between copper mining projects and the Fortín de Piedra shale gas development in Vaca Muerta, Techint’s flagship unconventional gas project. While Fortín de Piedra required 13,000 cubic metres of structural concrete, a typical copper mine would need 143,000 cubic metres—more than ten times as much. Similarly, Fortín’s 1,700 square metres of building infrastructure pale in comparison to the 151,000 square metres needed for a copper mine.
In terms of earthworks, Fortín required the movement of 500,000 cubic metres of soil, whereas copper projects demand a staggering 40 million cubic metres. Additionally, Fortín’s 1,500 tonnes of steel structures contrast sharply with the 33,000 tonnes necessary for copper projects. These comparisons demonstrate the immense scale and complexity of copper mining infrastructure, as well as the opportunities for local suppliers to contribute to its development.
Scarpari noted that, just as local suppliers were critical to the success of Fortín de Piedra, they can play a pivotal role in Argentina’s copper mining sector. Opportunities abound in areas such as steel fabrication, heavy machinery, water treatment, camp construction, catering, transportation, and electrical substations. Leveraging this local capacity could not only bolster industrial growth but also create jobs and economic opportunities across the country.
While Argentina’s copper reserves offer immense promise, Scarpari highlighted significant barriers that must be overcome to attract investment. Key among them is the elimination of foreign exchange controls, which currently hinder the flow of capital and repatriation of profits.
“Projects of this scale require not only the Mining Investment Law (RIGI) but also clear policies to ensure a stable flow of foreign currency for debt repayments and dividends,” Scarpari stated. “These are long-term projects, taking three to four years to execute and many more to mature, but they have the potential to transform the country’s economic landscape.”
He also pointed out the stark contrast with Chile, home to world-leading copper mines like Escondida, which produces 5% of the world’s copper. While Chile has a well-established mining sector, Argentina’s production remains negligible despite hosting deposits with higher copper grades.
The global copper market is expected to add 10 million tonnes of supply over the next decade to meet rising demand. Much of the world’s current copper production comes from ageing mines in Chile and Peru, where declining ore grades pose challenges. In contrast, Argentina’s deposits offer higher-grade ores, presenting a unique competitive advantage.
Scarpari also noted the growing influence of China, which continues to drive global copper demand. Beyond electromobility and renewable energy, digital technologies such as blockchain and data centres represent emerging sources of demand for copper.
Latin America already dominates global copper production, with Chile and Peru as the largest producers. While Argentina currently lags behind, its undeveloped deposits hold the potential to transform the country into a key player in the medium to long term. “These projects are transformational for the regions where they are developed,” Scarpari concluded. “They require years of exploration, studies, and planning, but they offer a unique opportunity to position Argentina as a leader in the global copper market.”
Argentina’s copper reserves present a once-in-a-generation opportunity to drive economic growth, industrial development, and sustainable energy transition. However, realising this potential will require bold investments, supportive policies, and the mobilisation of the entire value chain. With projects like Fortín de Piedra as a blueprint, Argentina can leverage its expertise, resources, and strategic location to establish itself as a global copper powerhouse.
The question remains: Will Argentina take the bold steps necessary to turn its copper potential into a reality?
