Argentina’s new law granting special legislative powers to the federal government has stirred controversy, with the mining industry celebrating a key section that could potentially boost copper exploration in the country.
The Incentive Regime for Large Investments (RIGI) under the new law offers tax benefits and more relaxed capital control rules for industries such as forestry, infrastructure, technology, energy, mining, and tourism. This has led to optimism within the mining sector, with companies eager to explore copper deposits.
Argentina, already a prominent global lithium supplier, is now eyeing copper as its next big resource. The country is estimated to have around 75.5 million tonnes in copper reserves and has several projects in advanced development stages, requiring billions in investments for significant production capacity.
The new law comes at a crucial time as global copper supply faces challenges from mines in South America struggling to meet demand. With the RIGI facilitating currency availability for mining projects, companies are hopeful for increased competitiveness and profitability.
In the lithium sector, Argentina’s ventures have been successful, with projections suggesting the country could surpass Chile as South America’s top lithium exporter by 2031. Despite falling lithium prices, the industry remains optimistic about future projects and export potential.
Overall, the new law’s impact on the mining sector in Argentina is expected to be significant, paving the way for increased investment, exploration, and production in both lithium and copper. As the country seeks to capitalize on its natural resources, the future looks promising for its mining industry.
:max_bytes(150000):strip_icc()/GettyImages-1475272476-8ddfe3878a6847a0a64d4981b6506ec9.jpg?w=380&resize=380,250&ssl=1 "The growing demand for copper driven by AI’s need for data center power")