Mendoza, contradictory: after approving a mining project to access the RIGI, created an environmental fund to compensate for damages

The mining in Mendoza added a new chapter this Wednesday, with contradictory signals that raise environmental alerts.

That’s because, the day before yesterday, the Mendoza Chamber of Deputies approved the San Jorge mining project 37 km from Uspallata.

This would be the first with the possibility of accessing the Incentive Regime for Large Investments (RIGI) in the province.

In contrast, and as a way to mitigate the expected environmental impact of San Jorge, the provincial Lower House also created a Compensation Fund to restore ecological damage.

The paradox exposes the provincial dilemma: promote open-pit extraction with tax benefits and, simultaneously, prepare repair tools for possible impacts.

Additionally, this contradiction deepens with the project’s proximity to the Mendoza River, the main source of drinking water and irrigation for the province.

Among the population, mining in Mendoza generates concern about the use of water resources in an arid area, despite the government’s insistence that the environmental controls are of “maximum demand”.

For this reason, hundreds of Mendoza residents protested to the legislators while the project was being voted on.

La Cámara de Diputados de Mendoza aprobó el proyecto de minería San Jorge a 37 km de Uspallata. Fuente Cámara de Diputados de Mendoza.
La Cámara de Diputados de Mendoza aprobó el proyecto de minería San Jorge a 37 km de Uspallata. Fuente Cámara de Diputados de Mendoza.

The contradictory projects approved in the Chamber of Deputies

The vote on the so-called PSJ (San Jorge Project) of Cobre Mendocino received 32 votes in favor and 13 against in the provincial Chamber of Deputies.

After the approval, Governor Alfredo Cornejo celebrated the decision: “The half sanction of PSJ Cobre Mendocino brings us closer to producing the copper demanded by the energy transition, expanding our productive matrix, and generating more employment and growth for Mendoza”.

In contrast, the PJ Interblock, the Green Party, and LUM deputies rejected the initiative, warning about environmental risks and lack of complete information.

According to the official statement from the Chamber, San Jorge “represents the first medium-scale copper initiative in the province and one of the most relevant projects in the country since Bajo de la Alumbrera”.

However, minutes before its approval, the legislators also gave the green light to a new Environmental Compensation Fund.

With 39 affirmative votes and 6 negative, this will seek to compensate for the environmental damage of extractive activities.

The Minister of Energy and Environment, Jimena Latorre, promoted the project framed in Article 34 of the General Environmental Law 25.675.

The San Jorge project will now move to the provincial Senate, where its final approval will be determined: if given the green light, it will be implemented.

The details of Mendoza’s “green” fund

The fund will allow financing actions when those responsible are insolvent or undetermined.

It will also address environmental emergencies and carry out ecological restoration works in affected areas.

The resources will come from multiple sources:

  • Fines, fees, and taxes linked to provincial environmental regulations
  • Judicial compensations for environmental damage
  • Contributions required in environmental impact statements
  • Subsidies, donations, and international credits
  • Income generated by the Fund’s own investments

Thus, mining in Mendoza will now have this tool to act against collective damage and restore affected ecosystems.

How the San Jorge mining project in Mendoza will be

The project is located 37 km from Uspallata and 97 km from the city of Mendoza, on a surface area of 9,984 hectares.

It requires an investment of US$559 million and contemplates the production of 40,000 tons annually of fine copper over 16 years, extendable to 27.

The open-pit mining will extract from 100 meters deep. The flotation process, without the use of sulfuric acid, will produce concentrate with 25% copper.

Construction is estimated to take between 18 and 24 months, with operations expected by 2028.

The projected employment would reach 3,900 jobs during construction and 2,400 in operation, of which 800 will be direct and 1,600 indirect.

San Jorge represents the first mining project in Mendoza that can enter the Incentive Regime for Large Investments (RIGI).

The Chamber of Deputies highlighted that the evaluation included “16 organizations that issued their sectoral opinions” and the participation of the Foundation of the National University of Cuyo.

La Cámara de Diputados de Mendoza aprobó el proyecto de minería San Jorge a 37 km de Uspallata.
La Cámara de Diputados de Mendoza aprobó el proyecto de minería San Jorge a 37 km de Uspallata.

The project also included an Environmental Impact Statement, with structured controls on five axes:

  • water;
  • biodiversity;
  • cultural heritage and Qhapaq Ñan;
  • air and emissions, and;
  • citizen participation.

The polarized debate around mining in Mendoza

In the provincial Lower House, Deputy Guillermo Mosso (PRO Libertad) defended the initiative: “we are talking about a project adjusted to the mandates of this Law, but also to all the environmental legislation and procedural that the province has”.

Mosso added that “from the technical opinions, this project arises, it does not generate an impact on the water resource“, according to the Chamber of Deputies.

In contrast, Deputy José Luis Ramón (CyC) anticipated his negative vote: “the water is not enough for this process”. He questioned that the DIAs “are a manual of omissions, irregularities, of incomplete information”.

Deputy Valentina Morán (PJ) stated that “this debate that has been generated around San Jorge is not a debate about mining yes or mining no”, but “about how, when, under what rules, with what controls, and in whose service“.

The day after the approval, Minister Latorre responded to the criticisms on Radio Post. The official explained that, regarding the tailings dams, maximum protection measures are required.

According to Latorre, the deposits include “a system of permanent drainage under the deposit”, “an artificial impermeabilization geomembrane” and “sensors with constant monitoring in real-time“.

However, regarding the possible connectivity between aquifers and the Mendoza River, the official admitted that there are no conclusive studies.

Despite this lack of information, Latorre stated that “the preventive precautions required today are the maximum, as if the connectivity were already accredited”.

The approval of San Jorge and the Environmental Compensation Fund mark a turning point for mining in Mendoza.

The development was enabled with reinforced controls, but the contradiction between promoting the activity and preparing for its possible impacts keeps the debate open.

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