Decree 2581/64 (04/10/1964) imposed on all Argentine exporters the obligation to transfer into Argentina the foreign currency export proceeds and sell them (“Mandatory Repatriation”) in the Argentine Foreign Exchange Market (“FX Market”). However, Decree 530/91 (03/27/1991) abrogated said obligation.
On 05/19/1993, Act 24,196 (“Mining Investment Act”) established incentives to favor mining activities. Its main benefits are tax stability for 30 years, a 3% limit to mining royalties and several tax deductions. Tax stability is also applicable to foreign exchange and tariff systems, except for foreign exchange parity and reimbursements, refunds and/or returns of taxes related to exports. Since the Mining Investment Act was enacted, many mining companies obtained the tax and foreign exchange stability, and therefore, were not subject to Mandatory Repatriation.
On 12/05/2001, Decree 530/91 was vacated by Decree 1606/01 (12/05/2001), and Decree 2581/64 recovered its effects. Therefore, Decree 1606/01 reinstated the generic obligation for Argentine exporters to transfer into Argentina their export proceeds. However, Decree 1638/01 (12/11/01) provided that those activities which were granted a special exemption from Mandatory Repatriation through a law, a contract with the Federal government or decrees dated earlier than this Decree, will not be required to comply with such obligation. Due to the fact that some mining companies obtained the benefits granted by Act 24,196, Decree 417/03 (02/27/2003) established that mining companies, which had obtained fiscal and foreign exchange stability under the Mining Investment Act during the period when Decree 530/91 was enforceable, were exempted from the Mandatory Repatriation obligation imposed by Decree 2581/64.
In addition, by means of Decree 753/04 (06/17/2004), and in order to avoid (a) special treatment for mining activity regarding the exchange regime applicable to companies under Decree 417/03; (b) free availability of foreign currency; and (c) foreign currency resulting from external financing for the development of mining activities within the country and for export; the Argentine Executive Branch exempted from Mandatory Repatriation established under Decree 2581/64, those mining companies who, after such decree became effective, obtained the benefits established under Section 8 of Act 24,196 as amended.
On 10/25/2011 the Argentine Executive Branch issued Decree 1722/2011, re-establishing Mandatory Repatriation for mining companies (including those protected by the fiscal and foreign exchange stability established by the Mining Investment Act).
The Government’s rationale for modifying the foreign exchange regime is that (a) circumstances which gave place to the enactment of the exemptions have changed; and (b) equal treatment should be given to all productive activities (many other activities are subject to Mandatory Repatriation).
Under said decree, mining companies are compelled to transfer into Argentina and sell for Argentine pesos in the FX Market the foreign currency proceeds derived from their export transactions within the applicable terms.

For further information on this decree, see "Decree 1722 Mandates Repatriation of Export Proceeds."

Communication “A” 5235 (i) abrogated Communication “A” 3971 and its complementary regulations concerning mineral exports validated as from October 26, 2011; and (ii) sets forth that financial entities in charge of carrying out the follow-up and supervising compliance by exporters of their repatriation obligations, may consider such obligations complied-with under the terms of Communication “A” 3971 and its complementary regulations, only regarding mineral exports shipped until October 25, 2011.

Communication “A” 5237 established as a general rule that in the case of repatriation of direct investments (including any participation of 10% or more in the capital stock of a company, reflecting a long term interest in the company and its activities) in local companies and/or real estate, maintained for at least 365 days (amounts collected for the following concepts: sale and/or final liquidation of the direct investment in Argentina, capital reduction and reimbursement of capital contributions by the local entity), from now on, the non-Argentine resident will be required to provide evidence of the transfer of the funds to Argentina to make such investment. If the non-Argentine resident executing the transfer does not comply with the above mentioned requirements, the transaction will be subject to the Central Bank’s prior authorization.

Communication “A” 5239 established that the entities authorized to make foreign exchange transactions (for instance, banks, foreign exchange offices, etc.), in the event of selling foreign currency, must request information and register, through a computerized system, the amount in pesos of the sale of the foreign currency. In this regard, the Argentine Tax Authority (Administración Federal de Ingresos Públicos or “AFIP”), issued Resolution No. 3210/2011, which implemented the requirements set forth by the Communication “A” 5239. According to such Resolution, the Argentine Tax Authority will assess, on line, the data entered through the computerized system and will issue the corresponding reply in accordance with the information that the Tax Authority has on its data base (the Argentine Tax Authority may indicate that the data entered passed the control and it assigns a number to the transaction or indicate that the data has not passed the control).

Following many decades of development, the Taca Taca copper project in the Province of Salta, operated by Lumina Copper, began to show greater capacity than that displayed in its initial assessments. The continuous drillings became more encouraging, evidencing 0.77% copper, 0.3 gr/ton gold and 0.02% molybdenum concentration.

Mining activity rose 50%, stated Mining Secretary Ricardo Salas before the Mining, Transport and Communications Commission of the Provincial House of Representatives. He pointed out that the annual fees (canon) grew by 107% since the year 2007 and that royalties would rise with the increase of productive capacity. He also mentioned that mining will be one of the pillars of the province’s economy.

As forecasted by the National Mining Bureau, investment in prospection, exploration, development and construction of mining projects in Argentina will result in a new record during the year 2011, providing over AR$ 11 billion (aproximately USD 2,6 billon); an accumulated growth over 5,700% for the preceding 10 years.

Mirasol Resources announced the launching of a significant diamond core drilling campaign in the Joaquin silver project, owned jointly with Coeur d’Alene. 90 pits are intended, which entails drilling 12,000 meters.

U3O8 Corp. (Canada) continues its successful metal surveys in uranium project “Laguna Salada”, in the Province of Chubut, where it obtained a 94% uranium smelter return in the Guanaco area. The alkaline lixiviation test showed a 51% vanadium recovery. In addition, the best results were achieved after only four hours of lixiviation, which could benefit the projects economics.

Mansfield Minerals Inc. was informed by the Government of the Province of Salta of the granting of the Environmental Impact Declaration (E.I.D.), allowing the company to develop the “Lindero” gold project under open pit and heap leaching procedures. This is the first open pit gold deposit authorized in the Province of Salta.

Golden Arrow discovered new high copper, gold and silver concentration deposits in the San Alberto area of the Don Bosco project, in the Province of La Rioja. Results include samples with values of up to 11.2% copper, 9.7 gr/ton of gold and 221gr/ton of silver.

Goldcorp filed an amended Environmental Impact Report increasing the processing capacity of Cerro Negro, its gold and silver project in Argentina. The company expects to begin underground works in the Mariana Norte and Mariana Central veins towards the end of the year, and upon the report´s approval.

The project will be formally launched after the public hearing. Estimates indicate that 1,000 workers will be hired to build the train, as well as the construction joining the South of the Province of Neuquen with North of the Colorado River. Nearly 20 bids will be tendered in the upcoming days, in order to hire several service providers for Vale.

El Decreto 2581/64 (10/04/1964) impuso a todos los exportadores argentinos la obligación de ingresar a la Argentina las divisas en moneda extranjera provenientes de exportaciones y liquidarlas (en adelante, la “Repatriación Obligatoria”) en el Mercado Único y Libre de Cambios (en adelante, el “MULC”). Sin embargo el Decreto 530/91 (27/03/1991) derogó dicha obligación.
El 19 de mayo de 1993 la Ley 24.196 de Inversiones Mineras estableció incentivos para favorecer la actividad minera. Sus principales beneficios son la estabilidad fiscal y cambiaria durante 30 años, la fijación de un límite a las regalías del 3%, y diversas deducciones impositivas. Desde la entrada en vigencia de la Ley de Inversiones Mineras muchas compañías mineras obtuvieron el beneficio de la estabilidad fiscal no encontrándose así sujetas a Repatriación Obligatoria.
El 5 de diciembre de 2001, el Decreto 530/91 fue derogado por el Decreto 1606/01, por lo que el Decreto 2581/64 volvió a entrar en vigencia. Así, el Decreto 1606/01 reestableció la obligación genérica para  exportadores argentinos de ingresar a la Argentina sus divisas provenientes de exportaciones. Sin embargo, el Decreto 1638/01 (11/12/2001) preveía que aquellas actividades a las cuales se hubiera otorgado una exención especial con respecto a la Repatriación Obligatoria por medio de una ley, contrato con el gobierno nacional o por medio de un decreto emitido previo a la sanción del Decreto 1638/01, no estarían sujetas al cumplimiento de dicha obligación. En función de que algunas compañías mineras habían obtenido el beneficio otorgado por la Ley 24.196, el 27 de febrero de 2003, el Decreto 417/03 estableció que las compañías mineras, que hubieran obtenido el beneficio de estabilidad fiscal mediante la Ley de Inversiones Mineras mientras el Decreto 530/91 estuvo en vigencia, se encontraban exentas de la Repatriación Obligatoria impuesta por el Decreto 2581/64.
Además, por medio del Decreto 753/04 (17/06/2004), y a fin de evitar (a) tratos especiales a favor de la actividad minera en materia de régimen cambiario aplicable a compañías incluidas en el Decreto 417/03; (b) la libre disponibilidad de divisas; y (c) divisas provenientes de financiamiento externo para el desarrollo de la actividad minera en el país y para exportación; el Poder Ejecutivo Nacional excluyó de la Repatriación Obligatoria establecida por el Decreto 2581/64 a aquellas compañías mineras que, luego de la entrada en vigencia de dicho decreto, hubieran obtenido los beneficios establecidos en el Artículo 8 de la Ley 24.196, en relación con nuevos proyectos o la ampliación de unidades productivas existentes.
El 25 de octubre de 2011, el Poder Ejecutivo Nacional emitió el Decreto 1722/2011, que reestableció la Repatriación Obligatoria para las compañías mineras (incluyendo aquellas compañías que se encontraban amparadas por el régimen de estabilidad fiscal y cambiaria previsto en la Ley de Inversiones Mineras).
El gobierno justificó la modificación del régimen cambiario en que (a) las circunstancias que dieron origen a las exenciones otorgadas han cambiado; y (b) debe otorgarse un trato igualitario a todas las actividades productivas (ya que muchas otras actividades se encuentran sujetas el régimen de Repatriación Obligatoria).
Conforme a dicho decreto, las compañías mineras se encuentran obligadas a ingresar las divisas provenientes del cobro de las exportaciones a la Argentina y liquidarlas en el MULC de acuerdo a las normas aplicables.