Argentina seeks more mining investment

Chile and Argentina have been rivals for so long that the idea of co-operating on anything seemed remote. But political changes and an economic renaissance have changed this adversarial stance, at least with respect to the huge mineral deposits that straddle their borders.

Officials from both countries have agreed to sign, within 90 days, a mining integration agreement that allows companies to operate and develop trans-border mines using land, water resources and infrastructure available in either country. It will also allow companies to transport concentrates from projects in Argentina to ports in Chile.

“There will be no border when it comes to the development of mines,” says Enriquez Loncan, president of Barrick Argentina. The preliminary agreement is important for the company, as its El Indio gold-copper operations sit on the border with Argentina. The company believes that mineralization at its new Pascua gold mine continues past the border, where it has secured additional lands.

Loncan says Barrick has not done much exploration on the Argentine side because the two countries previously had failed to reach an agreement regarding trans-border mining. There are still a few bugs to work out, but Loncan appears confident the two sides will hammer out a definitive agreement.

Meanwhile, Barrick Gold and Cambior each have secured an

agreement-in-principle that allows them to develop mineral projects in Argentina by making use of Chilean infrastructure. Of Barrick’s 13 properties in Argentina, 11 are in San Juan province. Cambior’s Pachon joint venture is also in that province.

Because mining rights are under provincial jurisdiction, Argentina’s political leaders have had some difficulty spearheading national initiatives in the mining sector. But Jorge Escobar, governor of San Juan province, says the recent agreement with Chile, and with Barrick and Cambior, provides proof of his province’s ongoing commitment to mining.

“We started working years ago to promote mining in San Juan province,” Escobar says. “But the problem was that we did not have the proper legislation to attract investment. That has changed, and we now have 27 exploration projects covering 10% of the province, which leaves 90% for others to explore.”

He adds that new legislation will breath life into projects such as Pachon, which had been known for 30 years but could not get off the ground because of a lack of infrastructure.