{"id":8797,"date":"2024-08-30T05:48:50","date_gmt":"2024-08-30T05:48:50","guid":{"rendered":"https:\/\/businesstriumphs.com\/index.php\/2024\/08\/30\/argentinas-mining-exports-set-to-double-by-2027-led-by-lithium-and-copper-production\/"},"modified":"2024-08-30T05:48:50","modified_gmt":"2024-08-30T05:48:50","slug":"argentinas-mining-exports-set-to-double-by-2027-led-by-lithium-and-copper-production","status":"publish","type":"post","link":"https:\/\/businesstriumphs.com\/index.php\/2024\/08\/30\/argentinas-mining-exports-set-to-double-by-2027-led-by-lithium-and-copper-production\/","title":{"rendered":"Argentina\u2019s Mining Exports Set to Double by 2027, Led by Lithium and Copper Production"},"content":{"rendered":"

Argentina\u2019s mining sector is poised for significant growth, with Mining Secretary Luis Lucero telling Reuters that the country\u2019s commodities exports are set to more than <\/strong>double to approximately US$10 billion by 2027.<\/strong><\/p>\n

Recent changes under newly elected President Javier Milei have fueled anticipation among miners and investors alike, fostering optimism about Argentina\u2019s future as a player in the critical metals industry. <\/p>\n

Argentina, which is already the fourth largest producer of lithium globally, is positioning itself as a key player in the global supply chain for electric vehicle (EV) batteries and renewable energy infrastructure. <\/p>\n

Milei\u2019s pro-business stance has helped bolster the reputation of Argentina\u2019s mining sector, although its mineral potential is no secret. The nation\u2019s resource industry is largely governed by the Mining Investment Law of 1993, which offers a 30 year period of fiscal stability and caps royalties at 3 percent, lower than Chile\u2019s 40 percent progressive royalties.<\/p>\n

This allows mining companies to retain a larger share of their profits. Additionally, Argentina permits private ownership and exploration of lithium resources, unlike its neighbors Chile and Bolivia, where state control is more pronounced.<\/p>\n

The Milei administration has implemented measures to support this foundation. Called \u2018RIGI\u2019 after a Spanish acronym, the measures offer tax breaks and improved access to foreign currency for large projects.<\/p>\n

Argentina\u2019s focus on lithium, a key component in EV batteries, has also been a strategic move. According to Lucero, the country is aiming to increase its annual lithium carbonate equivalent capacity from just under 140,000 metric tons currently to 200,000 metric tons by 2026, with potential to reach 250,000 metric tons in subsequent years.<\/p>\n

This would bring Argentina closer to overtaking Chile as the second largest lithium producer in the world.<\/p>\n

In addition to lithium, Argentina is making a concerted effort to boost its production of copper, another key metal for the energy transition. The country is targeting major international players such as BHP (ASX:BHP,LSE:BHP,NYSE:BHP), Glencore (LSE:GLEN,OTC Pink:GLCNF) and First Quantum Minerals (TSX:FM,OTC Pink:FQVLF).<\/p>\n

\u201cWe did a rough calculation just on our copper projects, and if they do what they\u2019re talking about, you could conceivably see an improvement in the net present value of the project of a billion dollars,\u201d McEwen said.<\/p>\n

Michael Meding, McEwen Copper\u2019s vice president and general manager, added in the same interview that the mining industry will serve as a \u201cbuilding block\u201d for the Argentinian economy for the future. <\/p>\n

\u201cIf you take the five projects that are the most advanced in terms of copper, they could be about 20 percent of what Argentina exports at the moment in the agricultural sector, which is the engine for Argentina\u2019s progress,\u201d he added.<\/p>\n

Despite the positive outlook, challenges remain. The country\u2019s economic crisis, characterized by annual inflation above 200 percent and stringent capital controls, poses significant obstacles to sustained growth.<\/p>\n

Market participants are waiting with anticipation to see how fruitful Milei\u2019s actions may be. <\/p>\n

\u2018Argentina has an important window of opportunity with lithium and copper to be a supplier in the international trade of these metals,\u2019 Lucero emphasized to Reuters. <\/p>\n

<\/span>Securities Disclosure: I, Giann Liguid, hold no direct investment interest in any company mentioned in this article.<\/strong><\/p>\n<\/p>\n

This post appeared first on investingnews.com<\/div>\n","protected":false},"excerpt":{"rendered":"

Argentina\u2019s mining sector is poised for significant growth, with Mining Secretary Luis Lucero telling Reuters that the country\u2019s commodities exports are set to more than double to approximately US$10 billion by 2027. Recent changes under newly elected President Javier Milei have fueled anticipation among miners and investors alike, fostering optimism about Argentina\u2019s future as a […]<\/p>\n","protected":false},"author":0,"featured_media":8798,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[3],"tags":[],"class_list":["post-8797","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"_links":{"self":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/8797","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/types\/post"}],"replies":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/comments?post=8797"}],"version-history":[{"count":0,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/posts\/8797\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media\/8798"}],"wp:attachment":[{"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/media?parent=8797"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/categories?post=8797"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/businesstriumphs.com\/index.php\/wp-json\/wp\/v2\/tags?post=8797"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}