As part of the 24th edition of ProPymes, Oscar Scarpari, CEO of Techint E&C, shared his vision for upcoming projects in the country during his talk entitled “Argentina on the move: projects that transform” at the CEC in Buenos Aires. During his speech, he focused on the sectors that will shape the country's economic future. “There are sectors that are already performing very well, such as agriculture; others that will continue to push forward, such as Vaca Muerta; and some that we are waiting for, such as metal mining,” he said at the beginning.

“Today, the world consumes approximately 23 million tonnes of copper, and by 2050 a 70% increase is projected. This growth is driven by economic expansion, energy transition (which is talked about less but continues to move forward), with much of Asia still driving demand for geopolitical reasons; and by the development of data centers, which will be major consumers of energy. Energy needs copper, so in the future this trend will be even more pronounced, with no substitute for copper,” he emphasized.

Scarpari commented that the company has been working for years in the large-scale mining chain in Chile and Peru, with multiple operations in the mountain range, and that it has participated in nearly 80% of the ecosystem of those projects. He also pointed out that today it is one of the main providers of construction services for water transport for mining in northern Chile. He predicted that in the next three or four years, or even sooner, there will be growing competition between the demands of large-scale mining and those of the oil and gas industry in Vaca Muerta.

He then focused on the magnitude of the projected investments and the need for the national industry to be prepared to respond on that scale. “A copper ecosystem in Argentina may require 30,000 tons of metal structure. When we asked for prices, they told us we were wrong, because they thought it was 3,000,” he said. This example reflects the scope of the challenge and the opportunity that is opening up for the local value chain.

During the talk, the CEO highlighted that metal and non-metal mining, together with Vaca Muerta, will be the main drivers of development. “In San Juan, Salta, and Catamarca, there are projects very close geographically to those that currently produce millions of tons in Chile. If we manage to attract investment, we will have to maximize our value chain,” he said. According to his estimates, the investment potential for the most advanced copper projects today exceeds US$20 billion, which requires a strategy to attract local labor and production.

With regard to Vaca Muerta, he predicted that production will continue to grow and will require large-scale infrastructure services. “To go from 800,000 barrels to higher figures, the scale will be enormous. We will see more projects connecting the basin to the Atlantic and operations such as Los Toldos II Este, which alone involve 2,000 tons of metal structure,” he explained. If Argentina adds ten similar projects, the requirement will be 20,000 tons, plus another 35,000 for gas treatment plants and 30,000 for a fertilizer plant.

The CEO also warned about the operational challenges that mining will bring. He explained that mining involves moving millions of tons of material, a process that requires constant renewal of equipment and infrastructure: "A camp can house 25,000 people, as in Quebrada Blanca, Chile. There is nothing similar in the Neuquén Basin. In addition, truck maintenance is practically aeronautical. We will have to learn and develop capabilities to sustain operations that run 24 hours a day."

Scarpari stressed that infrastructure will be critical: “We are going to need railways, roads, energy, and electrical grids. If the macroeconomy remains stable and investments arrive, it is possible that Vaca Muerta will reach 1.5 million barrels in the coming years. Mining still faces a challenge, but if fertilizer plants and copper projects appear at the same time, we must be prepared.”

In this context, the call was clear: “Engineering and construction companies, and the entire supply chain, must work together to ensure the delivery of these physical magnitudes. In some inputs, we are competitive, efficient, and meet deadlines, but the challenge will be scale,” he concluded.

Finally, Scarpari left an optimistic message: “If Argentina adds mining, fertilizers, and liquefied gas, in addition to Vaca Muerta, ProPymes will surely have a radically different agenda. We must prepare ourselves to maximize job creation for everyone.”