BUENOS AIRES (Reuters) -The joint operators of Argentina's Veladero gold mine, Barrick Gold and Shandong Gold, are seeking to add a $400 million project to a new government regime designed to attract large investments.

WHY IT'S IMPORTANT

The project, submitted to Argentina's Large Investment Incentive Scheme (RIGI), aims to boost the mine's output by 1.6 million ounces over its useful life through a $400 million investment between 2025 and 2028, company sources told Reuters on Thursday.

CONTEXT

The application was submitted to Argentina's Economy Ministry in early August, though the details were not disclosed until Thursday. The project is managed by the joint venture formed in 2017 after Shandong Gold acquired a 50% stake in the mine from Barrick Gold.

The RIGI framework, which went into effect last year, is a key part of libertarian President Javier Milei's economic reforms aimed at boosting investment. It provides companies with tax, customs and foreign-exchange benefits, as well as guaranteeing legal stability for 30 years.

Gold was Argentina's primary mining export last year, accounting for 68% of the sector's total shipments with a value of $3.14 billion, according to data from the country's mining secretariat. High metals prices drove the performance, with silver and lithium ranking as the next largest exports.

BY THE NUMBERS

The Veladero mine produced 504,000 ounces of gold last year and forecasts output of 380,000 to 440,000 ounces for 2025. The mine, located at an altitude of about 4,000 meters (13,123 feet) in the Andes, has been in operation since 2005.

The proposed investment aims to fund the construction of new mining phases, which will add 89.2 million tons of capacity for stockpiling and processing new ore.

WHAT'S NEXT

The project is projected to add $3.8 billion in export revenue over its lifespan through 2033, the sources said. The Veladero mine currently employs 3,800 people, with 91% of the workforce hired from the local San Juan province.