Argentina’s copper rush attracts a large energy producer

One of the largest producers of Argentine energy seeks to enter the country’s copper boomas it accelerates the key metal race in the global energy transition.

Central Puerto S.A. wants to take shares non-operating copper projects, and land a board position to help an international investor navigate the complex waters of Argentine politics and regulations. The firm based in Buenos Aires is analyzing three projectsin the provinces of San Juan, Santa Cruz and Salta, and has received interest from a mining company to associate.

“As newcomers with a learning curve ahead of us, we are looking for projects that are a bit more developed, that is, they are not in the initial phase, projects with more certainty and less risk”Adrián Salvatore, director of corporate affairs for Central Puerto, said in an interview Monday at a mining conference in Toronto.

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The company, which is listed in New York, recently amended its corporate bylaws in order to diversify away from power generation and take advantage of the growth of Argentina’s mineral sector.

Although neighboring Chile is the world‘s largest copper exporter, developments on the Argentine side of the Andes are just beginning. Glencore Plc, McEwen Mining Inc., Lundin Mining Corp. and First Quantum Minerals Ltd. all develop projects.

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The search for copper projects by Central Puerto comes amid a broader wave of investment that has included energy and forestry assets. Forestry and mining are attractive to the company because they generate exports priced in US dollars, while energy is sold on the domestic market in Argentine pesos, one of the world‘s worst performing currencies, in a heavily regulated market.

Central Puerto also has in its sights to the fledgling Argentine lithium industry as a power provider for explorers and producers, Salvatore said. Argentina’s third lithium project will enter production this year, with several more in development.