Mining
From The Report: Argentina 2018
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In 2016 the mining sector contributed 1% of Argentina’s GDP, or around $5.9bn. Of this total, 40% came from the sale of industrial rocks and minerals containing calcium, salt and dolomite. The main export destinations are Argentina’s southern cone neighbours, with Chile accounting for 68% of exports, followed by Brazil (19%) and Uruguay (6%). Nearly two-thirds of the area in Argentina with mining potential remain unstaked, leaving investment opportunities in a number of provinces. While private sector spending on exploration more than doubled from $140m in 2016 to $300m in 2017, around $400m of annual investment is expected to be required to fully explore these six mining regions in the coming years. This chapter contains an interview with David Guerrero, CEO, Galaxy Lithium.

Articles from this Chapter

Overview

Fresh prospects: An improved business environment is spurring investment
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Recent efforts should see Argentina catch up to its regional neighbours in terms of mining investment. During the commodity boom that lasted through the 2000s, Argentina’s Latin American neighbours reaped the benefits of their primary industries. Chile’s stateowned copper mining company generated $6.9bn in direct revenue for the government in 2011; Brazil produced 346m tonnes of iron ore; Peru became the one of the top-five global producers of copper, silver and gold; and Colombia, a country…

Interview

Right direction: David Guerrero, CEO, Galaxy Lithium, on the future of lithium and the potential for the Argentine market on a global level
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Interview : David Guerrero How do you asses the future prospects for the lithium industry internationally? DAVID GUERRERO: The global lithium market is relatively small, with approximately 220,000 tonnes of lithium carbonate equivalent (LCE), which contains 18.9% of lithium, produced by a relatively small amount of players. In 2015 the price of LCE per tonne increased to around $15,000 due to a significant supply deficit, which reactivated international interest. At this price, investment projects…

Analysis

A big deal: Work towards a unified federal mining deal has seen interest in new investments increase
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A key challenge facing mining investors in Argentina involves navigating the different legislative frameworks of each province, which under the constitution, own the subsoil mineral wealth. This gives local governments significant say in the licensing, taxing and regulation of the industry. The use of open-pit mining and cyanide are banned in Chubut Province, for example, effectively making the Navidad mine one of the world’s largest underdeveloped silver quarries, despite being owned by Canada’s…

Analysis

White gold: Argentina positions itself as one of the leading destinations for the exploration and production of lithium
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In a 3000-sq-km area traversing northern Argentina and neighbouring Chile and Bolivia lies the so-called “lithium triangle” an area estimated to hold over half the world’s lithium deposits. As demand surges for the products that use lithium-ion batteries – among them electric cars, cell phones and renewable energy projects – major electronics companies are looking to ensure their supply, buying up the most attractive mining projects around the world and making lithium mining a lucrative…