The Mineral Industry of Argentina in 2008
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2008 Minerals Yearbook ARGENTINA U.S. Department of the Interior August 2010 U.S. Geological Survey THE MINERAL INDUS T RY OF ARGEN T INA By Susan Wacaster In 2008, Argentina was estimated to be the world’s second days are added for each additional unit (or fraction thereof); the ranked producer of boron and South America’s leading maximum possible time granted is 1,100 days for a 10,000-ha producer. It was the world’s fourth ranked producer of lithium. concession. To exploit a deposit, the discovery must be The mineral industry in Argentina grew significantly during the registered with the mining authority. The location and proposed past 15 years. The growth was attributable to the development work area must be identified by coordinates on official maps. of a national regulatory framework that was conducive to Concession holders must submit an environmental impact report mining investments and to increased demand for minerals from to the mining authority before the commencement of activities, emerging economies. Of Argentina’s 23 Provinces, Catamarca and the report must be updated biannually. As of December Province experienced the greatest economic growth related to 2008, publicly available information regarding the mining law the advancement of mining; in 2007 (the latest year for which stated that in recent years some Provinces established royalties data were available), 23% of the provincial gross domestic on mineral production that were not uniform. Passage of product (GDP) was accounted for by mining revenue compared law No. 24,296 (mining investment) set a ceiling on royalties with 0.7% in 1993. Jujuy, San Juan, and Santa Cruz Provinces of 3% of the value of the ore and required the Provinces to also benefited economically from this growth. In Santa Cruz regulate the terms and manner of calculation and payment of Province, mining revenue accounted for 1% or less of the royalties. The procedures for exercising the rights provided by the provincial GDP in 1993, but by 2007, that amount had grown Mining Code were to be set by the Provinces; however, national to as much as 8% (Camara Argentina de Empresarios Mineros, and regional initiatives would be implemented to create a more 2009; Jaskula, 2009; Polyak, 2009). homogenous system (Secretaría de Minería de la Nación, 2009). Minerals in the National Economy Production The mining and quarrying sector of the economy accounted With the exception of a few mineral commodities, production for 2.8% of Argentina’s GDP in 2008 compared with 4.4% of metals generally increased in 2008 compared with that of in 2007. In December 2007, the Government implemented 2007 (not including mineral commodities for which only a a new fiscal plan that increased the taxes on mineral exports production estimate was available). Silver production increased to between 5% and 10% (depending on the level of domestic by 39% compared with that of 2007 and production of primary processing of mineral products) from the 3% ceiling previously aluminum increased by 38% for the same time period. Zinc established in the Mining Code in the mid-1990s (along with mine output increased by 12%, but production of refined zinc 30-year tax stability on mining projects). Several companies products decreased by 8%. The averaged production increase disputed the tax increase, claiming that it was unconstitutional of cadmium mine and refinery output was about 10.5%. Copper because it had not been passed as a law. Disputes continued production decreased by 13%, and gold production remained through 2008, although some companies paid the increased virtually the same compared with production in 2007. Lead fees to prevent losing their import and export licenses mine and refinery products decreased by an average of about (iStockAnalyst, 2007; Pouiller, 2009). 19%, and mercury production decreased by 70%. The country recorded its first molybdenum production in 2008 (table 1). Government Policies and Programs Metals were produced in the following nine Provinces: Catamarca, Jujuy, La Rioja, Neuquen, Rio Negro, San Juan, San Argentina’s Mining Code (El Codigo de Mineria) was enacted Luis, Santa Cruz, and Santiago del Estero. All reported cadmium by the Argentine Congress on November 25, 1886. It is a and zinc production came from Jujuy Province. All reported national policy that governs the acquisition and maintenance copper, lithium, and molybdenum production came from of mining rights and the loss of those rights; the Provinces Catamarca Province. San Juan Province led gold production carry out formal rules pertaining to such rights. The Mining (44%) followed by Catamarca Province (38%), and Santa Cruz Code underwent significant revisions in 1995 with the passage Department (16%), and the remainder was accounted for by of law No. 24,498 (mining update), law No. 24,523 (national Neuquen Province and artisanal mining operations throughout commercial mining), and law No. 24,585 (environmental the country. protection), and in 1997 with the passage of law No. 25,225 Industrial minerals were produced in all Provinces. The (modifications). Mineral resources in Argentina are the property production volumes of relatively fewer industrial mineral of the Nation and the Provinces. Any person or entity (domestic commodities increased than decreased in 2008 compared or foreign) capable of doing so may obtain exploration and with production in 2007. Commodities for which there was mining rights. Concessions are granted in units of 500 hectares an increase in production of greater than 10% included (ha) or a fraction thereof. No person may own more than 20 semiprecious gemstones (604%), celestite (204%), rhodocrosite concessions. The exploration period is granted for 150 calendar (170%), fluorspar (55%), dolomite (54%), boron (17%), lithium days for the first unit of 500 ha (or fraction thereof) and 50 more carbonate (13%), and shell or marl (14%). Those commodities ARGENTINA—2008 2.1 for which production volumes decreased were primarily those and silver mine in Santa Cruz Province. The first gold and silver of relatively less economic value, such as a variety of aggregate doré bars were poured on December 29, 2008. The company stones and construction materials. Barite production decreased expected to reach commercial production by the end of the by 92%; however, that decrease brought the production level first quarter of 2009 and to produce about 130,000 kilograms back in line with recent years’ totals after a large, unexplained per year (kg/yr) of silver and about 2,000 kg/yr of gold (Pan increase in 2007. The 604% production increase of semiprecious American Silver Corp., 2009). gemstones was owing to the rebound of production in Missiones Province, which brought the production volume back in line Mineral Trade with recent years’ totals after a dramatic decrease in 2007. Argentina was a net exporter in 2008 as it had been since Structure of the Mineral Industry 2000, although the country had a trade deficit with Brazil, China, and the United States, which, in terms of value, were Argentina’s Secretaría de Minería de la Nación its top three trading partners. Argentina maintained a trade [Mining Secretariat], which, along with the Public Works, surplus with Chile in 2008, which was Argentina’s fourth ranked Communications, Energy, and Transportation Secretariats, trading partner. Argentina’s total trade balance for 2008 included was a branch of the Ministerio de Planificaión Federal $70.02 billion worth of exports and $57.42 billion worth of Inversión Pública y Servicio [Ministry of Federal Planning, imports compared with $55.98 billion and $44.71 billion, Public Investment, and Services], was also the entity with respectively, in 2007. Brazil received Argentine exports valued oversight of the mining industry. The Mining Secretariat was at $13.26 billion and total imports valued at $17.69 billion responsible for the administration, development, and promotion compared with $10.5 billion and $14.52 billion, respectively, of mining and mining investment. The Dirección Nacional in 2007. China (excluding Hong Kong and Macao) was de Minería [National Directorate of Mining], the Dirección Argentina’s second ranked trading partner; it received Argentine Nacional de Planificación Estrategica Regional [National exports valued at $6.39 billion and supplied imports valued Directorate of Regional Strategic Planning], and the Servicio at $7.1 billion compared with $5.17 billion and $5.09 billion, Geológico Minero Argentino (SEGEMAR) [Geological and respectively, in 2007. The United States was Argentina’s third Mining Service of Argentina], the latter of which operated as ranked trading partner; it received Argentine exports valued a dependent decentralized agency, were under the authority at $5.21 billion and supplied imports valued at $6.89 billion of the Mining Secretariat. SEGEMAR was the scientific and compared with $4.15 billion and $5.26 billion, respectively, in technological arm of the mining industry and was composed 2007. Chile received Argentine exports valued at $4.72 billion of the Institute of Geology and Mineral Resources and the and supplied imports valued at $952 million compared with Institute of Mining Technology, both of which were responsible $4.18 billion and $708 million, respectively, in 2007 (Office of for the production of geologic information needed to promote the United States Trade Representative, 2009; Instituto Nacional investment in mineral exploration, as well as provide technical de Estadistica y Censos de la Republica