The Minister of Economy, Martín Guzmán, announced a new optional progressive rate system for copper export duties, that provides for the continuation of a rate of 4.5% or choose a scheme of variable rates according to the evolution of the mineral price.
This was stated in the framework of a second exhibition that took place this afternoon, virtually, by participating in the emblematic minerals and technology fair organized by the business association Prospectors and Developers Association of Canada (PDAC), considered the most important globally.
“This is going to reduce the volatility of the rate of return and favors increases in investments in copper in Argentina,” assured the minister, affirming that the new scheme incorporates progressivity and flexibility into the mining tax regime, giving investors greater certainty.
The progressive rate will be optional for companies, since before starting the investment project they can choose to remain for 30 years with the fixed rate of 4.5% or use the variable scheme.
The economic portfolio outlined that taxes with progressive rates according to the price of the mineral are used in different parts of the world (for example in Chile and Peru) to contribute to a progressive tax scheme for mining income that occurs during cycles of high prices. international.
In this regard, Guzmán explained that “Today there are important and large investment projects under analysis and the measure will favor the dynamics in the sector” since “it will provide greater stability and better mechanisms to address the volatility patterns that could occur in the international copper market”
”Argentina presents very important opportunities in mining and from the national government, together with the provinces, we articulate rules of the game to promote the development of the sector. This measure is the result of constructive dialogue with the sector and with the provinces”, he reaffirmed.
Guzmán’s presentation was given in the so-called “Argentina Forum Day”, within the framework of the Prospectors and Developers Association of Canada (PDAC) fair that takes place in the city of Toronto, Canada.
There were present the Secretary of Mining Fernanda Ávila, the governors Sergio Uñac, from San Juan; Alicia Kirchner, from Santa Cruz; Rodolfo Suarez, from Mendoza; Gustavo Sáenz, from Salta; and Gerardo Morales, from Jujuy; and the president of the Argentine Chamber of Mining Entrepreneurs, Franco Mignaco.
“In mining, the opportunities are very important. We have been working in the field of access to foreign currency to allow conditions to scale up the investment”Guzmán underlined in his first presentation
The minister’s presentation was made virtually due to the impossibility of attending the event due to the cancellation of the flight that was to take him to Canada, according to Guzmán himself.
“What Argentina is experiencing is a transformation of its productive structure, which is generating more value in different sectors of our economy,” the minister remarked.
In this sense, he added that there is “a sustained growth path forward” and remarked that “Argentina can make an important contribution, given our comparative advantages in key sectors of the global economy.
“One of those sectors is energy, where we have resources like Vaca Muerta, but also other very important basins to increase the global supply of energy. We are articulating rules of the game for this,” the minister stressed.
Regarding access to the foreign exchange market for large investors, he clarified that it allows them “the payment of debt services and the distribution of dividends, which has a direct impact on the possibilities of mining investments.”
“The Argentine Government encourages a dialogue that allows building the necessary understandings to promote the development of investment and employment opportunities in our country,” concluded Guzmán, who this afternoon, starting at 4:30 p.m., will officially participate in the fair that takes place in Canada.
The Secretary of Mining, Fernanda Ávila, together with a group of governors of metal-producing provinces, represent Argentina in the 2022 edition of the PDAC.
