BHP, the world’s largest copper producer, will invest in copper exploration in Mendoza through an agreement with Canadian company Kobrea Exploration. Work will focus on seven projects located within the Malargüe Western Mining District (MDMO), where the two companies will advance an initial exploration program over the next two years.
The involvement of a global mining company of BHP’s scale represents further recognition of Mendoza’s geological potential and follows the exploration progress achieved across MDMO during the 2025–2026 season.
An Initial Investment of at Least US$8 Million
According to information released by Kobrea, BHP Metals Exploration will make an initial payment of US$3 million and fund a two-year project generation program with a minimum investment of US$5 million.
During this initial phase, Kobrea will remain the operator of the exploration program, while activities will be overseen by a management committee made up of representatives from both companies.
At the end of that period, BHP will be able to select up to four projects to advance under individual earn-in agreements. For each selected project, BHP will have the option to acquire a 75% interest by funding at least US$40 million in exploration expenditures over an eight-year period.
If those conditions are met, the companies will establish a joint venture for each selected project, with BHP holding a 75% interest and Kobrea retaining 25%.
The structure creates the potential for significantly larger exploration investments over the coming years, depending on the results obtained during each stage of the program.
The First Project Drilled in MDMO
The agreement follows Kobrea’s 2025–2026 exploration campaign at El Perdido, which became the first project in the Malargüe Western Mining District to reach the drilling stage.
The company completed six diamond drill holes totaling 2,358 meters, following earlier exploration work that included geological mapping, surface geochemistry, spectral studies and geophysical surveys designed to define the main exploration targets.
The program also involved local suppliers. Mendoza-based Geoenergía participated in the geophysical campaign, while access roads and high-altitude infrastructure were developed and a field camp was established to support drilling operations.
According to results reported by Kobrea, drilling confirmed the presence of a porphyry system containing copper, gold, molybdenum and silver mineralization.
Drill holes intersected zones of potassic and phyllic alteration, stockwork quartz veining and mineralization primarily associated with pyrite and chalcopyrite. The company also reported that hydrothermal alteration intensity and sulfide content increase with depth, while the main core of the system may not yet have been reached.
Seven Projects Covering More Than 733 km²
Kobrea’s portfolio consists of seven projects over which the company holds the right to acquire a 100% interest. Together, they cover more than 733 square kilometers in southwestern Mendoza.
According to the company, the area displays geological characteristics favorable for copper and copper-gold porphyry systems. Exploration targets have been identified based on hydrothermal alteration footprints, copper, gold and molybdenum geochemical anomalies, stockwork veining, hydrothermal breccias and Miocene-age porphyritic intrusions.
Kobrea had already strengthened its exploration program in Mendoza in September 2025, when it increased a private placement to C$8.5 million to fund exploration and drilling activities.
Part of those funds supported work at El Perdido and continued exploration across other areas of the company’s portfolio. At El Destino, another project within the group, Kobrea reported environmental baseline studies and an airborne magnetic survey designed to provide additional data for planning future drilling programs.
MDMO Attracts Growing International Interest
The partnership between BHP and Kobrea marks another step forward in the exploration of the Malargüe Western Mining District and expands the presence of international capital and technical expertise in the search for copper in Mendoza.
The agreement is particularly significant given BHP’s global profile. The company is one of the world’s largest mining groups and currently the world’s leading copper producer, with large-scale operations in countries including Chile, Australia and Peru.
The new investment will allow the companies to deepen their geological understanding of the projects and identify new exploration targets over the next two years. Depending on the results, the agreement also provides a pathway toward larger-scale exploration programs across as many as four projects.