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In a significant move to enhance its mining operations in Argentina, Vicuña Corp. has formally applied for the Incentive Regime for Large Investments (RIGI) under the Long-Term Strategic Export Projects designation (PEELP). This application pertains to the promising Josemaria and Filo del Sol deposits, collectively referred to as the Vicuña Project. By seeking RIGI PEELP status, Vicuña aims to create a stable investment climate conducive to long-term growth and development in the region.
The RIGI framework is designed to attract substantial foreign investment into Argentina by providing long-term fiscal stability and clear regulatory guidelines. Approval of this application is crucial as it represents a pivotal step toward establishing one of the largest mining projects in the country, expected to yield significant economic benefits.
Strategic importance of the Vicuña Project
With its substantial potential for copper, gold, and silver production, the Vicuña Project is positioned to become a cornerstone of Argentina’s mining sector. The project is anticipated to foster economic growth and generate numerous job opportunities in the region. A detailed technical report outlining the economic advantages and specifics of the project is expected to be completed in the near future.
Jack Lundin’s perspective
Jack Lundin, President and CEO of Lundin Mining, expressed optimism regarding the application, stating that the RIGI framework aligns perfectly with the project’s long-term objectives. He emphasized the stability the RIGI regime offers, which is essential for a capital-intensive endeavor like Vicuña. The combination of provincial support and the high-quality resource base of the Vicuña Project could pave the way for transformative value creation in the region.
Understanding the RIGI regime
The RIGI regime provides various incentives designed to facilitate rapid project development. Key benefits include lower corporate tax rates, exemption from export duties, and provisions for repatriating revenues, all of which significantly enhance the economic viability of large-scale mining projects.
Vicuña Corp. is the first mining entity to apply for the RIGI PEELP, which offers extended benefit periods of 40 years compared to the standard 30 years, making it an attractive proposition for long-term investors. This unique status will enable the company to navigate the complexities of international mining operations more effectively.
About Vicuña Corp.
Lundin Mining holds a 50% stake in Vicuña, which operates independently and manages both the Josemaria and Filo del Sol deposits located in Argentina and Chile. Recent estimates indicate that these deposits represent some of the largest resources of copper, gold, and silver available globally.
The strategic proximity of these two deposits allows for collaborative development that maximizes operational efficiencies and infrastructure sharing. This synergy is critical in supporting the long-term vision for a world-class mining complex.
Lundin Mining’s growth strategy
Headquartered in Vancouver, Canada, Lundin Mining operates multiple mines across Brazil, Chile, and the USA. The company is committed to enhancing its production capabilities and aims to solidify its position as a top global copper supplier. The Vicuña Project is central to this strategy, reinforcing Lundin’s commitment to sustainable and responsible mining practices.
As Lundin Mining continues to expand its portfolio, it remains focused on fostering strong relationships with both local governments and communities. The company’s approach to mining is underpinned by a commitment to safety, sustainability, and delivering long-term value to stakeholders.
The RIGI framework is designed to attract substantial foreign investment into Argentina by providing long-term fiscal stability and clear regulatory guidelines. Approval of this application is crucial as it represents a pivotal step toward establishing one of the largest mining projects in the country, expected to yield significant economic benefits.
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