Projects of lithium, copper and gold. A global scenario that favors mineral resources, used in renewable energies and electric cars. A neighbor -Chile- which has already demonstrated a great performance in this area -with exports for 45 billion dollars– but now it seems to go out of style. Argentina is on the verge of a major mining development, but it faces an obstacle: the disorder of its macroeconomy.
That was the main conclusion of a meeting of governors, officials and businessmen at the fair this Monday arminerain La Rural.
The Governor of Jujuy, Gerard Moraleshe was the first to enable the claims “The first thing the next government has to do is order the macro, without a plan that establishes clear rules, only small projects can be implemented,” he said in a panel with other leaders (Raul Jalilfrom Catamarca e Gustavo Saenzof Salta). It can’t be done with “permanent rule changes,” Morales said.
The president of Jujuy added: “We need to bring order to the macro, to the public finances, and to move towards the unification of the exchange rate. This it may take a yearthose who say they will immediately they lie”, he stressed, in what appeared to be a criticism of his Together for Change allies who are not supporters of gradualism or Javier Milei.
The entrepreneurs verbalized the existing problems: “The obstacles to resource production, the exchange gap, which slow down imports, but also take away exports and take away resources from the operation and its years of useful life,” he listed Marco Alvarez, by Barrick Gold.
“Argentina always looks to its short term. The central (bank) reserves tomorrow. The way to approach mining development is with a long-term perspective,” added a businessman who asked not to be named. “We already export nearly $4,000 million a year in mining. There are plans to investment around sidereal quantities. And they will materialize when the country has no stocks or those regulations that they exist only here”, he narrowed.
The idea of a “lithium triangle” with Chile and Bolivia is beginning to be discarded. Chile is in a lithium nationalization process and Bolivia is showing macroeconomic problems. “We need to resume the previous path of Chile, which has come to have 130 free trade agreements, while we today we are no more than 30 years old”, Morales criticized and praised in the same sentence.
There are 6 lithium projects under construction and three in an advanced stage. It is estimated that the market for that product will multiply by seven in the next 5 years.
“In lithium, Argentina has a unique geology with a product that is in global demand. Lithium will be used in decarbonizing the world and electrifying transportation.” Martin Perez de Solay, CEO of Allkem Limited, who has just participated in a merger with another American. “You have to order the incentives. Chile does not attract lithium. Argentina has better conditions to generate development”.
Copper is the main transmitter of energy. Its use will intensify as it becomes more electrified. “There are 25 or 26 million tons of copper. 50 million needed by 2035“, She said Alfredo VitallerVice President of Corporate Affairs of Proyecto Josemaría.
“There are 5 construction projects staggered, because there is no infrastructure to do them all at once,” he explained. That development is in San Juan. It will require between 4,000 and 5,000 million dollars, according to its executives. “We will generate $1.1 trillion annuallyfor 15 years,” he said.
“Australian companies see the geological potential of the country. They are already investing in Argentina and they will invest more”, he said for his part Sebastian Rendina, Business Development Director of the Australian Embassy in Argentina. He also says steps are being taken to unblock the entry of imports, necessary for the production that will generate exports. Companies from that country that are in Chile and Peru now They think it’s time for Argentina.
Source: Clarin
