Mining News - December 2021

Legislative News

Decree No. 908/2021 published in the Official Gazette on 12/30/2021. (Nation)

The export duty rate of 8% for a series of tariff positions, including raw gold (including platinum-plated gold) among others, is extended from its expiration date up to and including December 31, 2023.

Communique “A” 7433 issued by the Central Bank of Argentina published in the Official Gazette on 1/12/2022. (Nation)
 
On January 7, 2022, General Resolution No. 5135/2022 of the Federal Administration of Public Revenues (AFIP) came into force, officially implementing a new system to control payments of services abroad through the Integral System for Monitoring Payments of Services Abroad (SIMPES).

This Communique creates the process by means of which financial entities must corroborate that clients have SIMPES-approved status to grant access to the foreign exchange market to pay for services. 

Resolution No. 301/2021 issued by the Ministry of Productive Development, Secretariat of Mining, published in the Official Gazette on 12/30/2021. (Nation)

Substitutes section 2 of Resolution No. 15/2020 which regulates the issuance of certificates and/or certificates derived from the use of the benefits provided by Law No. 24,196 on Mining Investments, initiated through the Long-Distance Processing Platform (the “TAD,” after its acronym in Spanish) of the Electronic Document Management System (the “GDE,” after its acronym in Spanish).

Under the regulation, registrants must submit, on a mandatory basis and as a Sworn Statement, the screenshot of the status of the import licenses made in the Integral Import Monitoring System (the “SIMI,” after its acronym in Spanish), reflected in the Malvina Computer System (the “SIM,” after its acronym in Spanish) issued by the General Customs Directorate, and/or on the website of the Federal Administration of Public Revenues (the “AFIP,” after its acronym in Spanish).

In addition, it establishes that, if necessary, the Undersecretariat of Trade Policy and Management may intervene to report the status of the declaration made by the applicant in the SIMI.

Resolution No. 50 issued by the Ministry of Economy and Energy, published in the Official Gazette on 01/03/2022. (Mendoza) 

Regulates Decree No. 998/1973 (creating the Mining Producers Registry of the Province). It is implemented by means of an electronic registry system (the “ReProM,” after its acronym in Spanish). 

The following are obligated to register in the ReProm: individuals, undivided estates, companies or sole proprietorships, corporations, associations, and other legal entities, both public and private, that carry out permanent or temporary mining activities in the province. 

The ReProm is an essential information tool for the development, advancement, and promotion of the mining activity in all its stages.

Decree No. 905 issued by the Secretary General of the Governor’s Office, published in the Official Gazette on 10/15/2021. (Salta)

The Interprovincial Treaty for the creation of the lithium mining region signed by the Governor of the Province of Jujuy, the Governor of the Province of Catamarca and the Governor of the Province of Salta is approved. Under the Treaty, the three provinces pledge to work together for the economic and social development derived from the research, extraction, production, industrialization, and commercialization of lithium.

Resolution No. 78 issued by the Secretariat of Mining and Energy, published in the Official Gazette on 11/15/2021. (Salta)

It provides that registrations and re-registrations to the Provincial Registry of Local Suppliers of Mining Companies may be made through the webpage of the Ministry of Production and Sustainable Development of the Province of Salta, keeping in force the possibility of making them in paper format.

General Provision No. 55 issued by the General Directorate of Revenue, published in the Official Gazette on 11/16/2021. (Catamarca)

It approves the online service for mining companies obligated to pay the mining tax. This service will allow mining companies to make the payment of the installments in an agile and simple way, through the webpage of the tax agency.

Mining in the Media

“Australian investments continue in the country: now, for lithium” news piece published by ANB 12/5/2021.

According to Lake Resources' analysis, the Kachi project, in the Carachi Pampa Salar, will have a low cost and long life operation, with a 25-year expectation and an annual production target of 25,500 tons of battery grade lithium carbonate through direct extraction. Construction is scheduled to start in mid-2022. 

The initial financing investment is expected to be USD 550M and up to a total of USD 800M depending on the progress of the project.

“Provincial Government signed contracts for new mining projects in Santa Cruz” news piece issued by the Government of Santa Cruz on 12/06/2021.

The Governor headed the signing of contracts between the Government of Santa Cruz, through Fomicruz, and the company Patagonia Gold to generate new investments for mining development through exploration projects, usufruct, and royalties in Perito Moreno and Gobernador Gregores. These contracts will generate an investment of 5 million dollars for the next two years in the exploratory stage.

“Lithium: USD 830 million investment confirmed to build a plant in the country” news piece published by El Cronista on 12/16/2021. 

The South Korean steel group Posco will invest USD 830 million in a new lithium plant in Argentina. The project will be developed near the Salar del Hombre Muerto, starting in the first half of 2022. Once completed, around the first half of 2024, it is expected to have a production capacity of 25,000 tons of lithium hydroxide per year, enough to power the batteries of 600,000 electric vehicles.

“Copper boom: Canadian Lundin Mining takes over the Josemaria project for USD 483 million” news published by El Cronista on 12/21/2021.

Canadian Lundin Mining announced that it reached an agreement to take over 100% of Josemaria Resources, the company that exploits the copper and gold project located in San Juan, for USD 483 million.

“Barrick Gold wants to extend the life of Veladero and ratifies an investment of USD 140 million” news published by El Esquiú 12/22/2021.

The president and CEO of the Canadian mining company Barrick Gold announced that the company is “working to extend the life of Veladero” in the province of San Juan “beyond its current horizon” and that “a new 10-year production plan is already underway.” 

He stated that “after the recent completion of the heap leaching facility of Phase 6 of the mine, the construction of Phase 7 will start soon, with an investment in the order of USD 140 million” that will allow the creation of 640 new local jobs.