Argentina’s mining exports are set to increase by nearly 6% this year, driven by higher sales of lithium, gold, and silver, according to Roberto Cacciola, head of the country’s leading mining association, CAEM.
Key Highlights:
Export Growth:
The mining sector is estimated to generate approximately $4.3 billion in exports this year, up from $4.06 billion in 2023, primarily due to the demand for lithium and rising prices for gold and silver.
Contrasting Metal Markets:
Gold and Silver: While the quantity of gold and silver sold may decrease, the substantial increase in their prices is expected to boost revenue. Cacciola noted, “In gold and silver, we will have a smaller quantity of product sold, but we will have more income due to a substantial price improvement.”
Lithium: Conversely, despite a decline in lithium prices due to weak demand, Argentina has increased its production volumes of the metal, essential for electric vehicle batteries.
2025 Outlook:
Cacciola anticipates that exports in 2025 will likely remain flat, contingent on the pace at which new lithium mines can scale up operations. “There’s no big expectation for exports in 2025 that’s not tied to a pricing situation,” he stated.
Government Initiatives:
The Argentine government is actively promoting foreign investment in mining to stabilize its economy. The new Incentive Regime for Large Investments (RIGI) has been well-received by miners focused on developing copper projects.
Six copper projects are currently in advanced stages, requiring a total investment of $25 billion. Cacciola expects announcements regarding spending plans for these projects in the coming year.
Infrastructure Challenges:
The development of copper mines is contingent upon the availability of essential infrastructure, including water, energy, and transportation systems. Cacciola emphasized that these projects can only progress as quickly as the supporting infrastructure allows.
Cultural Shift:
Cacciola acknowledged a cultural shift in investment sentiment under President Javier Milei’s administration but noted that tangible results from these efforts are still pending. “The question is whether this will be consolidated or not,” he remarked.