In order to make sound decisions, it is essential to know the surrounding context. Find here precise information to plan the steps to follow.
Buenos Aires, a strategic spot
Argentina offers a range of great possibilities and is a direct bridge to the MERCOSUR, a market with more than 250 million consumers.
Buenos Aires is home to national and international companies and one of the main investment centers in the region. In recent years it has become one of the most attractive markets for business due to competitive costs, qualified and creative human capital, and modern communications infrastructure.
It is currently considered a leading city in the events and conventions sector, annually receiving more than 2 million business tourists from all over the world.
Argentine mining industry
Positioned among the 15 best mining exploration sites, Argentina is a favorable destination for investments due to a combination of factors such as: great geological potential (less than 20% of the regions with mining potential have been explored); a legal framework that favors investments; access to advanced exploration and production technologies; and highly qualified human resources. In addition, virtually all types of minerals can be found in the region: precious metals, ferrous and non-ferrous metals, lithium and potassium.
In recent years, changes in the political and economic climate have favored the arrival of new players to the national mining scenario. Currently there are 65 projects in advanced stages of development and 271 in the prospecting and exploration stages, located in areas with high geological potential.
Mining-based industries, exploration companies and projects under development provide 84,000 jobs with better salaries than other economic sectors.
It is expected that the value added of the mining sector will increase 23.3% this year compared to 2017 and reach a total of AR$ 60,868 Million.
In the first two months of 2018, the mining sector contributed USD 316 Million to the economy. Mining companies’ external sales increased by 6.8%, totaling USD 654 Million. During the 2015-2018 period the number of perforations increased fourfold, from 244 to 1,000.
Since 2016, projects in advanced stages of development have experienced the largest increase in exploration investments, growing by 171% over the three-year period.
Gold and lithium are the most dynamic sectors. With a total of 40,000 tons per year, Argentina is the world’s third largest lithium producer, with a projected output of 200,000 tons by 2021. There are currently two mines in operation and a third in pre-production stage that will commence exporting in 2020.
Gold, in addition to receiving almost half of the investments between 2015 and 2018 (USD 241 million in 2018 and almost half of the drilling operations), grew by 63% compared to 2015. The majority of the mining operations in Argentina produce gold, and for that reason 56% of the expense in gold exploration was destined to mines, to increase resources and reserves.
Source: Ministry of Production and Labour. Report CAEM
Update Septiembre 2018