Barrick Gold and Shandong Gold Invest $400M to Expand Veladero Mine in Argentina

On August 14, 2025, Barrick Gold Corporation and Shandong Gold Group announced a $400 million investment to expand the Veladero gold mine in Argentina. This proposal has been submitted under Argentina's Large Investment Incentive Scheme (RIGI), a framework designed to attract substantial investments by offering tax, customs, and foreign-exchange benefits, along with a 30-year guarantee of legal stability.

The Veladero mine, located at approximately 4,000 meters altitude in the Andes, has been operational since 2005. In 2024, it produced 504,000 ounces of gold and forecasts a production of between 380,000 and 440,000 ounces for 2025. The mine currently employs 3,800 workers, with 91% hailing from San Juan province.

The proposed $400 million investment aims to increase the mine's output by 1.6 million ounces over its operational life through the construction of new mining phases, adding 89.2 million tons of capacity for stockpiling and processing new ore. The project is expected to generate $3.8 billion in export revenue through 2033.

Implemented in October 2024 under President Javier Milei's administration, the RIGI offers tax incentives, including a reduced corporate income tax rate of 25% (down from 35%), exemptions from new taxes for 30 years, and benefits related to foreign exchange and customs duties. The scheme targets investments exceeding $200 million in sectors such as mining, energy, and infrastructure.

In 2024, gold accounted for 68% of Argentina's $3.14 billion mining export value. The Veladero investment aligns with President Milei's economic reforms aimed at boosting investment in the mining sector, which is considered vital for securing foreign currency and economic stability amid high inflation.

While the RIGI aims to attract significant foreign investment, it has raised concerns among environmental organizations. Critics argue that the scheme offers substantial benefits to multinational corporations without adequate protections for natural resources, potentially leading to environmental degradation and displacement of communities.

This investment is part of a broader $500 million expansion package, which includes an existing $100 million Phase 8 expansion already underway. The new $400 million investment will focus on upgrading the mine's processing facilities, particularly improving leaching processes. This technological upgrade is expected to enable the extraction of an additional 1.6 million ounces of gold over the extended life of the mine.

The Veladero expansion project comprises multiple development phases (8A, 8B, and 8C) and aims to extend the mine's operational life by approximately ten years, securing its position as a cornerstone of Argentina's mining industry well into the 2030s. The expansion is scheduled to be fully operational by late 2028 or early 2029.

The economic impact of the Veladero expansion is substantial. The expanded operation is expected to generate approximately $3.8 billion in additional export revenue for Argentina over the extended operational period.

The Veladero mine currently employs 3,800 workers, with 91% hailing from San Juan province. The expansion project is expected to create additional employment opportunities, both directly and indirectly, contributing to the local economy.

The RIGI framework has been instrumental in attracting large-scale investments to Argentina's mining sector. In addition to the Veladero project, other mining companies have expressed interest in the scheme. For instance, BHP and Lundin plan to apply for RIGI benefits to support their Vicuna copper project. However, some companies, particularly those in earlier exploration phases, have raised concerns about meeting the scheme's requirements in time.

The RIGI has also faced criticism from environmental organizations. Critics argue that the scheme offers substantial benefits to multinational corporations without adequate protections for natural resources, potentially leading to environmental degradation and displacement of communities.

The Veladero mine expansion underscores the delicate balance between economic development and environmental stewardship in Argentina. As the government seeks to attract foreign investment through incentives like RIGI, stakeholders are divided over the potential impacts on local communities and ecosystems.

The Veladero mine expansion is a significant development in Argentina's mining sector. While the investment promises substantial economic benefits, it also raises important questions about environmental sustainability and the equitable distribution of resources. As the project progresses, it will be crucial for all stakeholders to engage in open dialogue to ensure that the benefits of the expansion are realized without compromising the well-being of local communities and the environment.