The Altar Copper Project in San Juan: Economic Importance and Development Potential
The Altar project represents one of Argentina's largest copper reserves, with estimated resources of 32 billion pounds of copper and 6.7 million ounces of gold. This significant mineral deposit has the potential to transform the country's mining economy and position Argentina as a major player in the global copper supply market, particularly important as demand increases for metals crucial to the energy transition.
With over $200 million invested in exploration to date and 199,000 meters of drilling completed, Altar stands as a world-class copper project that could dramatically reshape San Juan's economic landscape and Argentina's position in the global mining industry.
Strategic Location and Key Characteristics of the Altar Deposit
Prime Position in San Juan's Mining Corridor
The Altar project enjoys a privileged location within San Juan's established mining corridor, situated 46 km south of McEwen Copper's Los Azules project and 30 km north of Glencore's Pachón project. This strategic positioning places Altar within a significant copper district with proven geological potential and established infrastructure connections.
The deposit's location offers both advantages and challenges, as it benefits from proximity to other major mining operations while facing similar high-altitude development considerations.
Deposit Dimensions and Structure
The Altar deposit consists of a series of porphyry centers extending over 7 kilometers in length, with six distinct mineralized zones identified to date: Altar East, Altar Central, Altar North, Altar United, QDM Gold, and Radio. This complex geological structure reflects multiple mineralization events that have created a diverse and extensive copper resource.
Elevations within the project area range between 3,100 and 4,000 meters above sea level, with the deposit center located at approximately 3,400 meters. This high-altitude setting presents engineering challenges but is similar to other successful copper operations in the Andes region.
Confirmed Mineral Resources
Extensive exploration work has confirmed substantial resources amounting to 32 billion pounds of copper and 6.7 million ounces of gold. These findings position Altar as one of the most significant copper deposits not just in Argentina but across the broader region.
The deposit's scale and grade profile compare favorably with other major copper projects under development globally, particularly as copper demand increases for renewable energy infrastructure and electric vehicles.
Evolution of Exploration at the Altar Project
Exploration and Development History
The Altar project has progressed through several exploration phases since Rio Tinto (previously CRA) conducted initial work between 1995 and 2004, completing 2,841 meters of drilling. This early exploration established the preliminary understanding of the deposit's potential.
In 2005, Peregrine Metals acquired the property from Rio Tinto and advanced exploration efforts. The project's ownership history took another turn in 2018 when Aldebarán Resources signed an option agreement to acquire up to 80% participation in the project from Sibanye-Stillwater.
By 2024, Aldebarán had fulfilled its obligations, converting the project into a joint venture with Aldebarán funding 80% of expenses and Sibanye-Stillwater contributing the remaining 20%. This ownership structure provides clarity for future development decisions.
Cumulative Exploration Investment
To date, more than $200 million has been invested in exploration efforts at Altar, with 199,000 meters of drilling completed. This substantial investment demonstrates the long-term commitment to developing the project and the confidence in its economic potential.
The exploration program has been systematic and comprehensive, leading to significant expansions in the known resource base and improved understanding of the deposit's geological characteristics.
Discovery of Altar United
A recent milestone was the discovery of the Altar United zone, an area with higher copper grades that could potentially enable a hybrid exploitation model. This discovery opens the possibility of combining open-pit and underground mining methods, potentially optimizing the project's economics and reducing its environmental footprint.
The identification of higher-grade zones is particularly significant as it could improve the project's economics, especially during initial production phases, by allowing for more efficient extraction of higher-value material.
Economic Potential of the Altar Project
Initial Investment Estimates (CAPEX)
Javier Robeto, Vice President and Country Manager of Aldebarán Resources, has indicated that the CAPEX for the project will exceed $1.5 billion, although the definitive figure will be determined with the presentation of the Preliminary Economic Assessment (PEA) in September 2025.
This substantial investment estimate reflects the scale of infrastructure required for a project of this magnitude, including processing facilities, water management systems, power supply, and transportation infrastructure in a challenging high-altitude environment.
Projected Useful Life
The deposit has an estimated useful life between 20 and 25 years, guaranteeing long-term operations and sustained economic impact for the region and country. This extended operational timeframe will provide stable employment and economic benefits across generations.
The long mine life also provides opportunities for technological improvements and operational optimizations throughout the decades of production, potentially extending the life even further as extraction technologies advance.
Production Models Under Evaluation
The company is evaluating two development alternatives: the production of copper concentrate or the production of copper cathodes. The dual PEA will allow comparison of both scenarios to determine the most technically and economically viable option.
The copper concentrate option would involve conventional flotation processing, while the cathode production route would utilize hydrometallurgical processes similar to the approach being considered at the neighboring Los Azules project. Each option presents different copper investment strategies and market opportunities.
Next Steps in Project Development
Presentation of the Preliminary Economic Assessment
In September 2025, Aldebarán Resources will present the Preliminary Economic Assessment (PEA) that will include two development scenarios and provide a detailed evaluation of the evaluación económica del proyecto de cobre Altar en San Juan. This assessment will be a crucial milestone in advancing the project toward development.
The PEA will analyze various aspects including capital requirements, operating costs, production profiles, and financial returns under different copper price insights, providing stakeholders with a comprehensive understanding of the project's potential.
2024/2025 Drilling Program
The company has announced a drilling campaign utilizing five platforms (with an option for a sixth) to drill approximately 25,000 additional meters. This program will focus on feasibility study insights rather than resource expansion, reflecting the project's transition from exploration to development.
According to John Black, Executive Director of Aldebaran and an economic geologist with over 35 years of experience, the 2024/2025 field season will transition from resource expansion to more feasibility-oriented work, including infill drilling where necessary and data collection for the preliminary feasibility study.
Towards the Preliminary Feasibility Study
Aldebarán Resources plans to complete a preliminary feasibility study by the end of 2026, which will add substantial value to the project and bring it closer to the development phase. This more detailed study will refine the economic models and technical parameters established in the PEA.
The preliminary feasibility study represents a critical step in the project's advancement toward construction and operation, providing more definitive assessments of technical and economic viability.
Challenges Facing the Altar Project
Access to the Large Investment Incentive Regime (RIGI)
A significant challenge is the possibility of accessing the RIGI, which offers fiscal benefits and legal stability. The deadline for submission is July 2026, with the possibility of a one-year extension, representing a tight timeframe for the project.
This timeline creates uncertainty about whether Altar will qualify for these benefits, which could significantly impact the evaluación económica del proyecto de cobre Altar en San Juan and competitiveness in the global mining landscape.
Application of the Glacier Law
The interpretation and application of Argentina's glacier protection law creates uncertainty due to imprecise definitions regarding the boundaries between protected areas and zones available for mining development. This regulatory ambiguity could affect mine planning and development.
Clarity is needed to advance in mine planning, highlighting the challenges posed by imprecise legal definitions that create operational uncertainties for high-altitude projects in Argentina.
Tax Burden and Competitiveness
Without RIGI benefits, the tax burden could reach 54%, which would significantly affect the economic viability and international competitiveness of the project. This high taxation level poses a serious challenge to attracting the necessary investment for project development.
A competitive fiscal regime is critical for project advancement, particularly in the context of global competition for mining investment capital.
Aldebarán Resources' Business Model
Company Profile
Aldebarán Resources defines itself as a junior exploration company specialized in advancing projects to the preliminary economic feasibility stage, following a staged development model. This business approach focuses on creating value through exploration and initial economic evaluation rather than mine operation.
The company's expertise lies in identifying and developing mineral resources to the point where they become attractive for acquisition or partnership with larger mining companies that specialize in mine construction and operation.
Current Ownership Structure
In 2024, Aldebarán fulfilled its obligations and the project has become a joint venture, with Aldebarán financing 80% of expenses and Sibanye-Stillwater 20%. This clear ownership structure establishes defined responsibilities and investment commitments from both partners.
The joint venture arrangement provides financial flexibility while maintaining Aldebarán's majority control over project development decisions and strategy.
Long-Term Development Strategy
The company's strategy is to advance toward preliminary economic feasibility by the end of 2026, following the presentation of the PEA. Subsequently, they plan to seek partners or financing for the construction and operation phase, leveraging the increased project value established through the feasibility studies.
This approach aligns with the typical business model of junior mining companies, which create value through exploration and project advancement before partnering with larger operators or selling the project outright.
Potential Impact of the Altar Project on Argentine Mining
Contribution to National Copper Production
The development of Altar, along with other projects like Los Azules and Pachón, could transform Argentina into a globally relevant copper producer, diversifying its traditionally gold and silver-focused mining matrix. This transformation would position Argentina to benefit from growing global demand for copper driven by the energy transition and electrification trends.
Successful development of these projects would establish a new copper mining district of international significance, potentially attracting additional gold-copper exploration investment to the region.
Job Creation and Local Development
A project of this magnitude would generate thousands of direct and indirect jobs during construction and operation, boosting the economic development of San Juan and surrounding regions. These employment opportunities would span a wide range of skill levels, from technical mining positions to support services and supply chain roles.
Beyond direct employment, the project would stimulate local businesses, improve infrastructure, and contribute to community development through tax revenues and corporate social responsibility initiatives.
Attracting Investment to the Mining Sector
The success of Altar could serve as a catalyst to attract new investments to the Argentine mining sector, especially in copper projects, an essential mineral for the global energy transition. This demonstration effect would help establish Argentina as a viable destination for mining capital in a competitive global investment landscape.
As the world seeks to secure evaluación económica del proyecto de cobre Altar en San Juan and other copper supplies for renewable energy infrastructure and electric vehicles, Argentina's emergence as a significant copper producer would elevate its strategic importance in global mineral supply chains.
The Future of the Altar Project: Challenges and Opportunities
The Altar copper project represents a significant opportunity for Argentina's mining development. With world-class resources, a strategic location, and a solid technical approach, it has the potential to become a reference mining operation in Latin America.
However, its successful development will depend on overcoming regulatory, fiscal, and environmental challenges, as well as on Aldebarán Resources' ability to advance the necessary technical and economic studies to bring the project to the construction phase.
The presentation of the Preliminary Economic Assessment in September 2025 will mark an important milestone in this journey, providing a clearer vision of the economic potential and development options for this important mineral resource.
Frequently Asked Questions about the Altar Project
When might construction of the Altar project begin?
Although there are no confirmed dates, following the current study timeline, construction could begin after 2027, depending on permit approvals and the final investment decision. The project must first complete the preliminary economic assessment (2025) and preliminary feasibility study (2026) before construction decisions can be finalized.
What processing technologies are being considered?
Two alternatives are being evaluated: production of copper concentrate through conventional flotation or production of copper cathodes through hydrometallurgical processes, similar to the approach at the Los Azules project. Each option presents different capital requirements, operational considerations, and product marketing strategies.
How will water and energy supply be addressed?
These critical aspects will be detailed in the Preliminary Economic Assessment, considering the high-mountain conditions and the need to develop specific infrastructure for the project. Water management is particularly crucial in high-altitude mining operations, requiring careful planning to ensure operational efficiency and environmental protection.
For energy supply, the project will need to evaluate options including grid connections, on-site generation, or renewable energy solutions appropriate for the remote mountain location.
Emerging Trends in Copper Development Projects
The development of projects like Altar reflects broader trends in the global copper industry, including increasing interest in previously marginal deposits due to rising copper demand for energy transition applications. The industry is also seeing growing emphasis on more environmentally sustainable development approaches, including water conservation, renewable energy integration, and innovative processing technologies.
As copper projects advance in challenging high-altitude environments, technical innovations in areas like high-altitude equipment performance, water recycling, and energy efficiency become increasingly important for economic viability and environmental sustainability.
The evaluation of dual processing routes (concentrate vs. cathodes) also highlights the industry's evolving approach to maximizing value while minimizing environmental footprint through tailored processing solutions based on specific deposit characteristics.
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