Argentina investment incentive plan tops $27B
by Banyeliz Muñoz · UPIBUENOS AIRES, May 18 (UPI) -- Argentina's Large Investment Incentive Regime, known as RIGI, surpassed $27 billion in approved investment commitments this week after the government authorized two new mining projects under the program aimed at attracting foreign capital.
The initiative, promoted by the administration of President Javier Milei, has now approved 16 projects, while another 20 proposals remain under official review.
RIGI is part of Milei's economic strategy to increase foreign currency inflows and accelerate development in sectors considered critical to Argentina's economy, including oil, natural gas, mining, infrastructure and renewable energy.
The latest approvals include the PSJ Cobre Mendocino copper project in the province of Mendoza and expansion of the Cauchari-Olaroz lithium project in Jujuy.
"Today the Evaluation Committee approved the inclusion in RIGI of two mining projects," Economy Minister Luis Caputo wrote on X. "The San Jorge copper project in Mendoza with an investment of $891 million and the expansion of the Cauchari-Olaroz lithium project in Jujuy with an investment of $1.241 billion."
Caputo said the two initiatives are expected to create more than 8,000 direct and indirect jobs. He also said the San Jorge project demonstrates Mendoza's ability to develop mining activity and advance toward becoming one of Argentina's first copper-exporting regions.
According to official figures, the total volume of approved and pending projects submitted under the program now reaches nearly $95 billion.
Among the largest proposals seeking approval is LLL Oil, a massive export-oriented oil project presented by state-controlled energy company YPF. The initiative is tied to development of the Vaca Muerta shale formation, one of the world's largest unconventional oil and gas reserves.
YPF said the project would require a $25 billion investment over the next 15 years, making it the largest proposal submitted so far under the RIGI framework.
YPF President Horacio Marín said on X that the initiative could generate more than $100 billion in exports.
"Today we submitted the application to join RIGI for the LLL Oil project: a $25 billion investment to accelerate development of Vaca Muerta," Marín wrote. "This is Argentina's most important oil export program and the largest project presented under RIGI."
According to Argentine news outlet Infobae, the project includes drilling 1,152 wells and aims to reach production of 240,000 barrels of oil per day beginning in 2032.
YPF said all production would be destined for international markets and transported through the VMOS pipeline system. The company estimates the project could generate about $6 billion in annual exports starting in 2032 and create roughly 6,000 direct jobs during the development phase.
Approved RIGI projects are spread across the provinces of Neuquén, Río Negro, San Juan, Mendoza, Salta, Buenos Aires Province, Catamarca, Jujuy and Santa Fe. The projects include oil and gas infrastructure, renewable energy developments, ports and lithium, copper, gold and silver mining operations.
To qualify for the program, companies must commit to large-scale investments and meet a series of government requirements. Minimum investments start at $200 million, though projects in the oil and gas sector may require between $300 million and $600 million depending on the type of development.
Projects considered strategically important for long-term exports require a minimum investment of $2 billion.
Companies also must complete at least 40% of committed investments within the first two years, submit production and export plans and demonstrate sustained economic impact.
RIGI offers tax, customs and foreign exchange incentives, including a reduction in the corporate tax rate from 35% to 25%, export-related exemptions and greater flexibility for foreign currency operations.
The program also allows companies to seek international arbitration in the event of legal disputes, a measure the government considers essential to providing greater certainty for foreign investors.