🇦🇷 Barrick Mining Corporation and Shandong Gold have formally applied to Argentina’s Large Investment Incentive Regime (RIGI) with a projected investment of 400 million USD to expand and extend the life of the Veladero gold mine in San Juan province. The investment, planned between 2025 and 2028, aims to increase the mine’s production capacity by an additional 1.6 million ounces and extend operations for at least another ten years, until approximately 2034.
The application was submitted in early August 2025 by Barrick Shandong Gold, a joint venture formed after Shandong Gold Group acquired 50% of Veladero in 2017. This partnership has driven expansion efforts incorporating technological improvements in processes such as leaching, critical for boosting gold recovery.
The total investment for the project, including the ongoing phase 8A with around 100 million USD, reaches nearly 500 million USD. The mine’s expansion is expected to generate additional exports valued at approximately 3.8 billion USD and provincial royalties of about 200 million USD for San Juan. In 2024, Veladero exported 504,000 ounces of gold, with production estimates for 2025 between 380,000 and 440,000 ounces.
This project will increase the capacity to stack and process up to 89.2 million tonnes of ore through new operational phases (8B and 8C, in addition to 8A). Employment levels are projected to remain stable at about 3,800 workers, 91% of whom reside in San Juan, highlighting the local social impact. Operating at approximately 4,000 meters above sea level since 2005, Veladero is one of Argentina’s largest gold exporters.
The RIGI, enacted by Argentine Congress and regulated in 2024, is designed to attract foreign and national investments in strategic sectors such as mining by offering currency, tax, and legal stability benefits for up to 30 years. It provides a stable legal and fiscal framework essential for high-risk, long-term mining investments. For mining projects, a minimum investment threshold of 200 million USD applies, with tools like Single Project Vehicles to optimize fiscal and operational management.
While RIGI aims to foster investment, it has faced criticism from environmental groups and some political sectors concerned about environmental rights and regulatory flexibilization.
Gold was Argentina’s main mining export in 2024, accounting for 68% of total mining exports with 3.141 billion USD, followed by silver and lithium. The Veladero expansion reinforces gold’s leading role and supports Argentina’s mining sector as a key export pillar. Veladero will be among the first projects in San Juan to join RIGI, alongside Los Azules and Gualcamayo, setting an important precedent for the regime’s adoption in local mining.
Barrick CEO Mark Bristow reaffirmed in 2025 the commitment to continue exploration and development in the Veladero district, with cumulative investments since 2019 exceeding 422 million USD and a focus on extending mine life beyond 2034.
This strategic investment highlights significant economic, technological, and social impacts on Argentina’s mining industry. The RIGI framework plays a crucial role in attracting and sustaining large-scale mining investments, offering stability and incentives necessary for long-term projects.
Source(s): https://www.runrunenergetico.com/mineria-barrick-y-shandong-gold-presentaron-un-rigi-por-us400-millones-para-ampliar-la-mina-de-oro-veladero/, https://www.rumbominero.com/argentina/barrick-y-shandong-gold-solicitan-adhesion-al-rigi/, https://miningpress.com/nota/369200/barrick-y-shandong-presenta-el-rigi-para-extender-la-vida-util-de-veladero
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