Modification of Mining Royalties in Argentina
The recent “Fiscal Package” (Law 27,743) has introduced a key amendment to the Mining Investment Law (Law No. 24,196). Section 112 now allows provinces adhering to the law to set a mining royalty up to 5% of the “pit-head” value for new projects that have not yet begun the exploitation stage. However, the 3% royalty cap for existing projects remains unchanged. This modification provides provinces with greater flexibility to adjust royalties and enhance their revenues.
Amendment of Mendoza’s Mining Procedure Code
Mendoza’s Executive Branch has enacted the amendment of the Mining Procedure Code through Law N° 9,529. The new regulations, effective since June 19, 2024, incorporate environmental sustainability and sustainable development criteria, alongside modernizing mining procedures. This change highlights the province’s renewed focus on attracting investments, particularly in gold, silver, and copper, where Mendoza has significant potential.
Some Provinces Have Already Adhered to RIGI, While Others Are Still Debating
The Investments Incentive Regime (RIGI) is one of the most significant initiatives to attract mining investment in Argentina. So far, the provinces of Río Negro, Jujuy, Mendoza, San Juan, Salta, and Chubut have officially adhered to RIGI, although Chubut excluded mining activities from its scope. Other provinces, such as Catamarca, Neuquén, and Santa Fe, are in advanced stages of discussion.
Lithium Tender in Salta Province
Salta Province has launched a tender for one of the largest lithium reserve areas in the country, covering 37,000 hectares in the Salar Arizaro. The tender includes commitments for investment in social infrastructure, such as roads and solar energy parks, as well as a NSR (net smelter return) in favor of the province. Bids will open on September 30, 2024.
Memorandum of Understanding between USA and Argentina
On August 22, 2024, Argentina and the United States signed a Memorandum of Understanding for cooperation on critical minerals. This agreement aims to strengthen supply chain collaboration, promote investment in exploration and processing of critical minerals, and support the energy transition. This memorandum marks a significant step in international cooperation in the mining sector.
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Author: Ramiro de Iturralde
