The mining activity in Argentina received investment announcements for more than US$11.3 billion since the beginning of 2020intended for projects in different stages of execution, whether in exploration, construction or expansion works, for the use of metal and lithium resources linked to the high demand of the energy transition and electromobility.
The announcements made cover from February 2020 to date, a period that spans almost from the beginning of the current government administration and a few weeks before the declaration of the coronavirus pandemic and which saw the emergence of a series of official measures to promote better conditions for the arrival of capital in productive projects.
In the last year, in particular, Investments amounting to almost US$ 2,000 million were concentrated, of which the largest committed disbursement is that of the company Livent, which announced US$ 460 million for the expansion works in the province of Catamarca of its Fénix project, one of the two that are in lithium production in the country.
Mining exports reached the best export result since 2012 in 2022, with US$ 3,852 million, driven mainly by the dynamism of lithium
The amount announced was followed in recent months by the litiferous project of the Chinese company Zinjin, which will allocate US$380 million for the construction of the Tres Quebradas project; and the one presented by Orocobre-Galaxy for US$ 270 million, for the lithium venture known as Sal de Vida, in the south of the Salar del Hombre Muerto, also in Catamarca.
Other investment commitments known in recent months is that of the French Eramet, which will disburse US$ 370 million for the construction of another lithium project known as Centenario Ratones, in Salta.
Also noteworthy is the announcement by the Ultra Argentina-Zangge Mining company that with US$ 250 million provides for the construction of the Laguna Verde lithium project in Catamarca.
The accumulated announcements reflect the high preeminence of lithium projects, a mineral that is in a process of high global demand
While the Rio Tinto mining company plans to develop the initial commercial plant of its Salar del Rincón lithium project in the province of Salta, which will require an investment of US$ 190 million.
Cumulative announcements reflect high prominence of lithium projectsa mineral that is in a process of high global demand by virtue of being a key component, but without a doubt the largest of the disbursements announced at the end of 2021 was that corresponding to the Josemaría project, in the province of San Juan, for US$ 4,200 millions.
This project owned by the Canadian mining company Lundin is considered the starting point of the new era of copper in Argentina, as part of a portfolio of at least five megaprojects that may respond to the global increase in demand for this product.
To boost the growth of the sector and support the arrival of new capital, the national government works with companies with a set of tools such as Decree 234 for large investmentswhich facilitates access to the exchange-free single market and helps leverage the development of projects.
Last year, the company Liex, a subsidiary of the Zijin group, obtained its certificate of inclusion in the regime for the first stage of its investment, which is currently under analysis.
Last year, the company Liex, a subsidiary of the Zijin group, obtained its certificate of inclusion in the regime for the first stage of its investment, which is currently under analysis.
The certificates of the Eramet companies are also close to being issued for their investment, which -at different stages- would reach US$ 680 million, among other initiatives.
In this context, and with the vast Argentine territory that still remains to be developed and explored, the Argentine government projects a five-fold increase in mining exports by 2030, and in terms of lithium it is on the way to six-fold production in the coming years.
This growth of the productive sector would make it possible to strengthen reserves and stabilize the macroeconomy, but also generate federal development, quality employment, and leverage the development of industrial, scientific, and technological linkages.
The local production of the activity had a great incidence on the whole of the exports of the provinces
Mining exports reached in 2022 the best export result since 2012, with US$ 3,852 million, driven mainly by the dynamism of lithium.
The possibilities of consolidating growth is also reflected in what is happening in neighboring countries that, with similar geological characteristics, became the main producers of copper, lithium and silver with exports that last year exceeded US$ 55,000 million in the case of Chile, or the 38,000 million in Peru.
The local production of the activity had a great incidence on the set of exports from the provinces: In Catamarca it represented 86% of its exports; in Jujuy 84%; in Santa Cruz 77%; in San Juan 75%; and Jump 33%.
Mining in Argentina has been generating sustained employment for 27 months, and after the drop experienced during the pandemic, the numbers indicate that from July 2020 to October 2022, 6,780 jobs were created, going from 30,807 to 37,587 in just over two years.
