Mining Momentum Builds Across Latin America

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Mining in Latin America has been attracting growing interest from global players, driven by factors beyond the region's large reserves. From project financiers to global investment funds and multilateral institutions, the sector's potential is also drawing attention due to recent changes, including regulatory shifts in Argentina and the reopening of Venezuela's mining sector. This expands the list of countries appealing to investors already established in Chile, Peru and Brazil, among others.

Why it matters

The increased interest in Latin American mining is driven by rising global demand for critical minerals like lithium and copper, as well as regulatory changes that are opening up new investment opportunities in countries like Argentina and Venezuela. This diversification of global players in the region's mining sector could bring in more capital, better technology, and stronger execution capabilities, ultimately benefiting the industry.

The details

According to Carlos Viana, co-head of White & Case's global project development and finance practice in Miami, the current mining activity in Latin America is developing along three main fronts: strong momentum around critical minerals like lithium and copper, particularly in Argentina and Peru; significant expansion projects in Chile; and a pipeline of activity in lithium and rare earths. Thomas Pate, White & Case's partner in the same practice in New York, noted that the growing role of governments and sovereign-backed investors, especially in the critical minerals space, is a prominent trend, driven by geopolitical considerations. The financing structures for traditional mining segments like copper differ from newer segments like rare earths, which lack a large, liquid market and have been historically dominated by China.

• Until about two weeks ago, any development or investment activity in Venezuela's mining sector was subject to U.S. sanctions.
• Recently, new licenses have been issued that first allowed the trading of Venezuelan-origin gold, and more recently, exploration and other pre-development activities in mining.

What they’re saying

What’s next

As the regulatory changes in Venezuela's mining sector are very recent, investors are moving cautiously due to the uncertainty surrounding the broader political outlook.