By 2030, Argentina's mining investment needs will reach $10 billion, with copper and lithium as the focus

Argentina's government is stepping up efforts to attract foreign investors into its mining industry and boost the country's metals and minerals production as the International Monetary Fund's deadline to restructure billions of dollars of debt looms
.

The South American country is once again at risk of being cut off from global financial institutions and left in isolation, so a series of incentives are being introduced to attract foreign capital into its mining sector
.
The government said this week that the export tax would be reduced from 12 percent to 8 percent, without providing specifics
.

Luciano Berenstein, executive director of the Argentine Association of Mining Entrepreneurs (CAEM), said in an emailed statement: "Argentina's tax burden is still higher than that of countries
it competes with in mining production.
”

The industry has called on the government to further reduce withholding taxes from employee wages, speed up value-added tax (VAT) refunds and increase access to foreign exchange markets
.

The government says it aims to boost mining export revenues to more than $10 billion over the next decade, a figure that is on track given that $25 billion is expected to be invested in 34 projects currently in its advanced stages
.

Mining investment announcements totaled US$9.
3 billion in 2020 and 2021, with 94.
5% of projects focused on expansion and construction
, according to official figures.

The country needs $22.
2 billion to develop identified copper assets and $7.
3 billion to mine its lithium deposits
, authorities said.
The investment required is $1.
65 billion for gold and $1.
11 billion
for silver.

Summary of major items

The Argentine government welcomed
a number of major announcements last year.
Canada's Lundin Mining has committed $4.
2 billion to bring the recently acquired Josemaria copper, gold and silver project in San Juan province into production
.
According to company estimates, it will create 2,500 jobs and $1.
7 billion in annual exports
.
The mine is scheduled to begin operations in 2026 and has a mine life of up to 19 years
.

Gold giant Barrick and venture partner Shandong Gold announced investments to extend the life of Veladero, Argentina's largest gold mine
, until 2030.

Pan American Silver has also become a high-profile project
within the industry following the approval of its $1 billion Navidad mine.

Most of the transactions in 2021 (totaling $5.
3 billion) were in the lithium sector
.
Australian and Japanese partners Orocobre-Toyota and existing projects operated by U.
S.
company Livent have announced expanded lithium extraction
.

Lithium Americas and joint venture partner Ganfeng Lithium approved the second phase expansion of the Caucharí-Olaroz lithium project in Jujuy province, which is expected to come on stream
in the third quarter of 2022.

Rio Tinto acquired the Rincon brine project for US$825 million at the end of 2021, providing another boost
to the industry.

In terms of the most attractive provinces, the government indicated that San Juan led the provinces with attracting $5.
1 billion in investment, accounting for 55.
6%
of the country's total investment in two years.
Salta followed with $2.
5 billion and Catamaka came in third
with $1.
2 billion.

Argentina's current mining portfolio includes 87 projects, of which 34 are in advanced exploration stages, 14 are undergoing preliminary economic assessment, five are in the pre-feasibility phase and 12 are in the feasibility stage
.
The country has 17 producing mines, 3 in the construction stage, and 6 early-stage exploration projects
.