Mexico’s proposed higher mining royalties could block nearly $7bn in investments
The Mexican government proposed raising mining royalties under the argument that metal prices have risen in recent years.
Argentina’s sub secretary of Mining Development, Mario Capello, expects exploration activities to rise by 2 per cent in 2017.
In an interview with local newspaper El Economista, Capello said that, in spite of the not so positive global outlook for exploration, 32 new companies have set foot in the South American country.
Many of such newcomers are from Australia, like Oceana Gold, but Canada remains the leading foreign investor in Argentina’s mining industry with a 60 per cent dominance.
“There is also Shangdon Gold, who left in 2011 due to the retentions issue, which no other country in the world had. We are very excited because Argentina’s biggest bounty is in mining,” the official said (in Spanish).
In partnership with Barrick Gold (TSX, NYSE:ABX), Chinese Shangdon Gold invested $1.2 billion in the construction of Pascua Lama, the first binational gold and silver mine between Chile and Argentina.
For Capello, not only the one-of-a-kind project needs to be admired, but also Chile’s own mining industry. “Last year, our neighbours exported $300 billion just in copper, while Argentina only sold $4 billion,” he said.
The sub secretary of mining revealed that the country’s diplomatic missions are campaigning to lure in investors to Argentina’s six world-class porphyries located in the western provinces of Neuquén, Salta, and Catamarca.
Cappello said that president Mauricio Macri wants to reassure foreign miners that Argentina offers a safe, stable environment for the exploitation of copper, gold, silver, and lithium.
4 Comments
Mike
It is Shandong gold and they invested in Veladero.
Matt
If I was a mining executive, I would put some money in exploration but until Cristina Kirschner is in jail, I wouldnt put a penny into a project. The second there is a thriving mining industry in Argentina and the peronists get into power again then they will restrict repatriation of profit. Ie mine for free and give us the money. Socialism is what you have until you run out of other peoples money.
toorightmate
Still not much grass roots exploration in Oz – ever since Rudd said “there will be a great big new tax on mining”.
The people who call the shots on where exploration dollars are spent have long memories. It will be a long time before Rudd’s stupid expose is forgotten in the halls of London, Zurich, etc.
We now rank below African and South American countries in crown stability and resource expenditure attractiveness – thanks heaps Kev..
And if there is any doubt about governments destabilising investment just look at what the decision to tax the big banks is doing to O/S investment in Oz, let alone the power folly which now has good, sound businesses and employers fleeing our once great country.
The CO2 horsesh*t has to stop.
Kenneth Viney
Hillary and Cristina will never go before a grand jury. They have both stolen too much and now have control over the politics and FBI.
The exploration could double and no investors will build a mill or a power generation plant until Christina is in jail. Just ask AES. They dumped $300-$400 million US and will not soon forget.