Mining News - April 2022

Legislative News

Note No 2022-21421336 Issued by Mining Development Undersecretary on 03/07/2022.

The Mining Development Undersecretary reminded those companies registered in the Registry under Law 24.196 of Mining Investments the mandatory obligation of submitting yearly, before December 31st of each year, the  affidavits pursuant to Articles 18 (affidavit informing works and investments made) and  Article 25 (affidavit describing the tasks and studies and investments made  according to each schedule). These affidavits must be made through the platform “Distance Procedures” (TAD for its acronym in spanish).

The note  also notifies  the restitution of suspended benefits to those companies that suffered such suspension during the periods of 2019 and 2020 due to non-compliance of the Articles 18 y 25.
The Affidavits related to the Article 18 must be filed for the 2021 period and those related to the article 25 for the upcoming  2022 period.

 

Mining in the media

“A Giant Will Invest USD 100 Billion in Filo del Sol”. News article published by Huarpe on 03/02/2022.

BHP confirmed the firm will invest USD 100 billion in Filo Mining, the company in charge of the exploration of the  Filo del Sol depositary, which belongs to Lundin Mining. This implies the return of the Anglo-Australian giant to San Juan, after over 20 years since their departure. Previously the had been in charge of Casposo area exploration.

“Hand son work in Salta´s first lithium production plant”. News article published by El Tribuno on 03/05/2022. 

The mining group Eramet is developing through its local subsidiary Eramine, the Centenario Ratones Project, in a salt flat of the same name. The starting date for the construction of its lithium plant in the Puna salteña has already been set, being the first producing plant built in Salta.

The works, as announced by the Eramet’s CEO , will begin early in June. The mining project will have a budget of USD 400 billion and will generate 2,000 direct and indirect jobs.  The plant will also have an estimated annual production capacity of 24,000 tons of lithium carbonate equivalent (LCE), with exports of the mineral expected to begin in 2024.

“5 sectors targeted to boost exports by USD 25 billion”. News article published by Ámbito on 03/07/2022.

The Government assumed before the  International Monetary Fund (FMI  for its acronym in spanish) a commitment to increase exports, a policy that aims for long term development and dollar shortage. To achieve such goal, the Government will boost certain strategic sectors such as   agriculture, hydrocarbons,  automotive industry, mining and  knowledge economy. It is estimated that these sectors’ exports could bring in more than extra USD 25 billion.

This is the result of the Memorandum of Economics and Financial Politics agreed upon with the FMI sent to Congress for its approval. The document specifies that in order to boost these tradable sectors, a laws package containing the implementation of economic incentives including and tax cuts.

“Elon Musk Wants to Apply Argentine Lithium in his Cars’ Batteries”. News article published by La Nación on 03/16/2022.

Elon Musk is looking at Argentina and is willing to use  the lithium recently found in the Andes Mountains in the batteries of his Tesla cars.

The American businessman has a company with more than two decades operating in the country as one of its main suppliers, and now plans to double its production in the Province of Catamarca with the intention of supplying lithium to the most valuable automotive company in the world, among others.

A few days ago, Tesla representatives were in the province with officials and directors of Livent, a US-owned mining company that exploits the Hombre Muerto  salt flat (Catamarca) and produces lithium carbonate, one of the main inputs used in electric car batteries.

At that meeting, the mining company confirmed an investment of USD 1.1 billion, including its plan to triple the activity they currently have in the country.

At the present moment, the company produces 20,000 tons of lithium carbonate per year and plans three stages of expansion to reach 60,000 tons per year by the end of 2025.

“Uñac Highlighted San Juan's Security for Mining Investments” . News article published by Sí San Juan on 4/02/2022. 

Until present, San Juan had the largest foreign investment in the country in 2021 with the Josemaría project. That barrier was broken again with the announcement of El Pachón.

Josemaría was the most important mining investment in Argentina with an amount of USD 4 billion  requiring more than 4,000 people for the construction of infrastructure. On the other hand,  the introduction of the economic evaluation of the El Pachón copper project, located in Calingasta, involves an estimated investment of around USD 6 billion and the generation of almost 8,000 jobs for the construction of the mine.

“Multinational Rio Tinto Confirms Investment in Salta”. News article published by El Tribuno on 04/02/2022.

The Anglo-Australian company Rio Tinto, one of the world's most powerful mining companies, announced it has completed the acquisition of the lithium project at the Rincón lithium deposit, located in the Puna Salteña. The investment was of USD 825 million, which  was the amount paid to Rincón Mining, a subsidiary of the Sentient Equity Partners group,  in charge of the mine.

“MARA Project, the Mining Plan that Will Generate USD 1.2 Billion a Year for 27 Years”. News article published by Ámbito on 06/04/2022.

Yamana Gold has renewed its partnership with the Province of Catamarca, assuming the commitment to reuse Alumbrera's facilities at the new Agua Rica open-pit deposit.

The MARA project will integrate mining activity at Bajo de la Alumbrera and the new Agua Rica copper-gold deposit, located approximately 35 kilometers from the heart of Catamarca.

Although MARA will use Alumbrera's existing infrastructure, it is expected to invest USD 2.996 billion in construction by 2026 with more than 3,500 new jobs and a further USD 1.098 billion during operation, with an additional 1,000 permanent employees.
MARA has the potential to generate USD 1.2 billion in mineral exports over the 27-year life of Agua Rica. If the project proceeds apace, it could increase Catamarca's exports by more than 700% in the short term.

Projections indicate that MARA will be able to export USD 2.08 billion from 2026 and USD 2.493 billion within the following year.