McEwen’s Los Azules copper project gets key environmental approval
The company anticipates construction to begin as early as 2026.
Miners struggling to cut costs amid plunging metal prices just got some help from Argentine President Mauricio Macri, as he announced the government has revoked a 5% tax imposed by the previous administration on mining and energy companies.
Macri, who took office in December on a platform of repealing government intervention that scared investors away, unveiled the measure during a visit to the mining province of San Juan, state news agency Telam reported (in Spanish). He later announced it on Twitter:
“This is the end for mining taxes. We will help the sector generate more jobs.”
Top gold producers Barrick Gold (TSX, NYSE:ABX) and Goldcorp (TSX:G) (NYSE:GG) as well as billionaire Ivan Glasenberg’s Glencore (LON:GLEN), AngloGold Ashanti (JSE:ANG) and Yamana Gold (TSX:YRI)(NYSE:AUY) are among the benefitted by the move.
“Eliminating export duties will have a direct benefit to the state. San Juan is one of the provinces with the largest mining resources in the country. It’s important to have a federal vision about those resources,” Jaime Berge, head of San Juan’s Mining Chamber, told Buenos Aires Herald.
Macri’s government has moved quickly to liberalize market conditions and normalize the country’s economy. In only two months, the Argentine government has relaxed exchange controls and let the peso float, eliminated export taxes on mining products and lifted restrictions on the repatriation on earnings and dividends.
Argentina produces silver, gold, copper, aluminum and lead. It also has important potash and uranium reserves.
9 Comments
Mike Failla
finally a common sense glimmer of hope. It would be nice if other countries realized how important mined minerals are and follow suit. after all , if you cant grow it then you must mine it.
Juan Carlos Moreno
I’m from San Juan, Republica Argentina and I’m very happy for mining’s news from the government. We need news job sources and the mining is very important in ours economics.-
LAMB
In this time of low metal prices, Governments world wide should consider this incentive to keep the industry alive and jobs intact. Maybe the key is a “change of Government” ?
wheasonjr
The US has more problems than taxes on mining, try another million acres removed from mining by decree, no consensus except Obama. With all that goes on here and if it continues there will not be a reason for a middle class person to do any more than what it takes to survive. No more dreams and no more surplus to help out others when disaster hits abroad.
Mac Evans
Everyone should go read Trish Saywell’s interview with Rob McEwen that was published on January 13th of this year.
Jorge Daniel Taillant
Rob McEwen’s Los Azules project is one of those projects that has some serious legal issues, as it is smack in the middle of permafrost zones, now protected by law in Argentina. Following the Colombian example of protecting sensitive hydrological environments (the Paramos) Argentina recently passed a strict Glacier Protection law, making much mining above 2,500-3,000 meters in areas like SAN JUAN (where McEwen has his Los Azules project) off limits to mining.
Jorge Daniel Taillant
Several mining projects in San Juan are fatally flawed, in direct violation of Argentina’s Glacier Protection Law. It is still to be seen if projects like El PACHON, LOS AZULES, EL ALTAR, and others, including Pascua Lama, can get around the fact that they are in direct conflict with glacier and periglacial zones. The Argentine Supreme Court already overturned a San Juan federal court decision temporarily suspending the Glacier Law for Barrick. The law is back for Barrick and doesn’t bode well for the few projects San Juan want to advance with.
Al Berard
Hopefully Western Lithium Corp will Ink that deal with POSCO and get mining …..
Sterling Ross
I thought that mining was one of Argentina’s biggest supplies of income and employment. By dissolving the tax all they allow is for foreign investors to take control of their resources at a “wholesale” price . This would help increase the amount of copper coming out of the ground but what it is doing for their country has been dramatically reduced. With as much money that is now coming through its basically a tax free investment with instant gains for any deep pocketed investors who are ready the question is whether that’s a good thing or not.