Industry Outlook: Mining in Argentina
- Argentina’s mining industry contributes with 3.2% of gross domestic product; 6% of employment, 7.4% of exports and 1% of companies based in Argentina.
- Between 80% and 85% of that contribution to GDP corresponds to the extraction of fuel, followed by non-metallic minerals, and metallic minerals.
- Nowadays, mining industry employs around 41.000 people, with an average monthly gross salary of U$S 1892. Considering the whole industry, total employees rise to 94.000 (taking into account suppliers, contractors, etc.)
- Actually, nine out of ten companies in the local mining are SMEs. In this context, there are many investment opportunities in unexploited projects, due to the lack of financing for these type of companies.
- The new government has lifted exports restrictions. This will ultimately lead to lower costs (-8%) and a greater perception of sales (+5%). Meanwhile, the national government will no longer collect from this year about U$S 223 million for the removal of these export duties.
- The tax structure of this activity is exempt from withholding tax, but is made up of royalty payments to the provinces, taxes, duties, taxes and service fees remuneration to the Nation, provincial governments and municipalities.
- Mining has the added benefit of fiscal stability, which does not involve the removal of taxes, but the freezing of the same from the moment it begins running the mining proposal.