Argentina’s Copper Ambitions Are Creating a New Industrial Opportunity

Argentine lime producer Caleras San Juan has commissioned a fourth industrial kiln, lifting its installed production capacity above 600,000 metric tons a year as the company prepares for rising demand from planned copper and lithium mining projects.

The new kiln, named Matilda, is located at the company’s Cienaguita plant in San Juan province and uses technology supplied by Swiss equipment maker Maerz, the company said. It completes a series of four kilns installed since 2018.

The expansion comes as Argentina seeks to develop a copper industry that has attracted major international mining companies but remains constrained by infrastructure requirements, financing needs and a history of economic and regulatory uncertainty.

Lime, produced by heating limestone at high temperatures, is used in copper processing to control acidity and support the separation and recovery of metals. It is also used in lithium production and a range of industrial applications, making reliable supplies important to the expansion of Argentina’s mining sector.

“The investment process allowed us to fully modernize our facilities,” said Raúl Cabanay, Caleras San Juan’s general manager, at the kiln’s inauguration.

The company installed its first kiln, Nilda, in 2018, followed by Aylen in 2021, Luana in 2024 and Matilda in 2026. Its expansion strategy is based on adding capacity when demand reaches 80% of installed production capacity, Cabanay said.

Belgian lime producer Carmeuse acquired an 80% stake in Caleras San Juan in September, with Cabanay retaining the remaining 20%. The deal provides the Argentine company with additional financial and technical support as it plans further investment.

Argentina’s copper industry is attracting renewed investor interest after decades in which the country remained a relatively small player in global copper production despite its geological potential.

The country produced copper at the Alumbrera mine from 1997 until operations ceased in 2018. The closure left Argentina without significant operating copper mine production, although exploration and development projects have continued to advance.

The current project pipeline includes Vicuña, a venture involving BHP and Lundin Mining, as well as McEwen Copper’s Los Azules project and Glencore’s proposed El Pachón development.

Vicuña has secured approval to enter Argentina’s Large Investment Incentive Regime, known by its Spanish acronym RIGI, with a planned initial investment of about $9.7 billion. Its developers have said investment could eventually rise to $18 billion.

Los Azules has also received approval under the incentive regime, while Glencore has outlined plans for El Pachón, another major copper development in San Juan.

The RIGI framework, introduced in 2024, offers qualifying large-scale investments long-term tax, customs and foreign-exchange incentives intended to improve Argentina’s appeal to international investors.

The projects could transform demand for industrial inputs, including lime, but their projected capital expenditure should not be confused with committed spending on completed facilities or guaranteed future production. Mining projects typically require years of engineering, permitting, infrastructure construction and financing before they generate commercial output.

Global demand provides an additional incentive. The International Energy Agency estimates that refined copper demand, excluding direct-use scrap, reached almost 27 million metric tons in 2024 and could rise to about 33 million tons by 2035 under its stated-policies scenario. The agency has warned that supply from announced projects may fall short of demand, with declining ore grades and rising development costs complicating efforts to bring new mines online.

Argentina is also expanding its lithium industry in the northwestern provinces of Jujuy, Salta and Catamarca. Lithium extraction and processing provide another potential source of demand for lime, although requirements vary by production method and facility.

The growth of the lime industry will depend not only on mining investment but also on the availability of affordable energy and efficient transport.

Lime production requires heating limestone to high temperatures, consuming substantial amounts of energy and releasing carbon dioxide both from fuel combustion and from the chemical process itself. Improving kiln efficiency can reduce fuel use per ton, but it does not eliminate process emissions.

Caleras San Juan is developing a 7-megawatt solar power plant intended to supply its production operations. The company expects the project, combined with its newer kilns, to lower its carbon footprint.

The extent of the reduction will depend on how much electricity the solar plant supplies over time, the facility’s total energy demand and the fuels used in the kilns. Solar electricity can reduce emissions associated with power consumption, but it cannot by itself eliminate emissions from limestone calcination.

Transport is another constraint. Cabanay highlighted the importance of improving Route 153 to strengthen logistics and access to mining projects, while also calling for greater natural gas supply capacity, a key input for kiln operations.

The expansion illustrates a wider challenge for Argentina’s mining ambitions: developing mines requires investment in a network of supporting industries, from processing chemicals and industrial minerals to electricity generation, roads and freight services.

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