The Government of San Juan and Vicuña signed an agreement that provides for an advance contribution of US$250 million to finance provincial infrastructure several years before the start of mining production. The agreement was announced by Governor Marcelo Orrego along with company authorities. To acquire full validity, it must be sent to the Chamber of Deputies and obtain legislative ratification.
The amount was defined as fixed, non-refundable and non-compensable. It will be used exclusively for road, water, and sanitation infrastructure, with potential impact on agro-industrial, energy, and tourism activities in addition to mining. The administration and execution will correspond to the provincial State under its public procurement mechanisms.
The agreement also creates a public infrastructure trust financed with a contribution equivalent to 1,5% of the gross billing value of the project once it begins operation. That flow is future and depends on the productive start. The scheme also maintains mining royalties of 3% on the gross billing value from the formal start of exploitation.
Vicuña committed to financing on its own works directly linked to the operation, including a power line and the Corredor Norte, a road section that will connect Angualasto with the project. These obligations are separate from the advance contribution of US$250 million and the trust of 1,5%; they should not be added together as a single disbursement nor should their purposes be confused.
The understanding contemplates ending an administrative dispute initiated in 2022 by Declaración de Impacto Ambiental. The parties present that closure as an element of predictability for the project. The negotiation extended for more than a year and a half and included meetings in San Juan, Buenos Aires, Santiago de Chile, Vancouver, New York, and the PDAC convention.
The next step will be the legislative process and, if the agreement is ratified, the implementation of the contribution and the works. Until then, the company represents an agreement subject to approval, not funds already executed. Its anticipatory nature modifies the temporal relationship between project and infrastructure, but public oversight must verify the destination, contracting, auditing, and compliance with each separate obligation. Ratification will determine whether the agreed-upon scheme becomes an enforceable obligation.
